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Technical & Derivatives Report
July 22, 2020
Nifty Bank Outlook - (22782)
Yesterday, the banking index too opened higher in line with
benchmark index. However, post the gap up opening, all major
indices slipped into a consolidation mode and traded within a
slender range. However, all of sudden we witnessed a sudden
spike in the Bank Nifty towards the fag end to extend morning
gains by nearly half a percent. Eventually banking index ended by
adding more than 2 percent to the bulls’ kitty.
Recent underperforming banking space has finally attempted to
see some catch up to the benchmark. However, it is yet to surpass
its recent highs around 23000-23100, which we believe would be
challenged in the forthcoming session. Whether it crosses this or
not, we will have to see. But once it stays beyond it, there would
be fresh leg of rally getting unfolded and hence, next couple of
sessions would be quite crucial. If it fails in next two days, traders
should ideally start taking money off the table and wait for further
developments. On the downside, 22600 followed by 22400 would
be seen as immediate supports.
Key Levels
Support 1 – 22600 Resistance 1 – 23000
Support 2 – 22400 Resistance 2 – 23100
Exhibit 1: Nifty Daily Chart
Se
nsex
(
37930)
/ Nifty
(
11162
)
On the back of positive cues from the Asian markets, Nifty started
trading with another gap up opening above 11100. The index then
consolidated with a positive bias and ended the session with gains
of over 140 points.
The bulls had a head start for this week on Monday and it was
followed by another gap up opening in yesterday’s session. Both the
Nifty as well as Bank Nifty traded with a positive bias and added
decent gains to Monday’s close. However, participation from the
index heavyweights held the market positive but it was a muted
session for the midcap space. The Nifty has now almost reached our
expected target area of 11200 which is the 78.6 percent of the
previous correction. Traders can look to book some profits on their
existing longs around this area and take some money off the table;
but by no means one should preempt any contra moves as there are
no signs of reversal as of now. Identifying potential movers and
trading with a stock specific approach would be a better strategy for
short term. The immediate supports for Nifty are placed around
11085 and 11000 whereas resistances are seen around 11190 and
11220.
Key Levels
Support 1 – 11085 Resistance 1 – 11190
Support 2 – 11000 Resistance 2 – 11220
Exhibit 2: Nifty Bank Daily Chart
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July 22, 2020
Nifty Vs OI
10000
10200
10400
10600
10800
11000
11200
11400
10,000
10,500
11,000
11,500
12,000
12,500
13,000
13,500
14,000
7/1 7/3 7/7 7/9 7/13 7/15 7/17 7/21
(`000)
Openinterest Nifty
View
s
Following the positive momentum from the previous
session, Index witnessed a gap up opening and with
positive momentum throughout the session ended with
gains of 1.27% at 11162.25.
FIIs were net buyers in the cash market segment to the
tune of Rs. 2266 crores. In index futures, they bought
worth 857 crores with increase in open interest
indicating long formations in yesterday’s session
.
Nifty started the day with a gap up and then
consolidated with a positive bias. Both Nifty and Bank
Nifty witnessed some open interest addition. FII bought
equities worth more than 2200 crores while they
formed long positions in the index futures segment too.
In options segment, in-the-money call options
witnessed unwinding of positions whereas fresh
addition was seen in 11250-11500 calls. On the flipside,
11100 and 11000 put options witnessed decent
amount of OI addition indicating near term supports for
Nifty. The Nifty PCR (put call ratio) has reached 1.87
which is nearing the overbought level. Traders are
advised to continue to trade with a positive bias,
however, one should avoid aggressive trades and keep
booking timely profits as PCR has reached near the
overbought zone.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 2.48%
Bank Nifty futures open interest has increased by 3.64%
as market closed at 11162.25 levels.
The Nifty July future closed with a premium of 8.3 point
against a discount of 13.6 point in last trading session.
The August series closed at a premium of 11.6 point.
The INDIA VIX has decreased from 24.71 to 24.43
At the same time, the PCR-OI of Nifty increased from 1.75
to 1.87.
Few of the liquid counters where we have seen high cost
of carry are GLENMARK, CANBK, SUNTV, IDEA, AND SAIL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BAJFINANCE 8459000 23.54 3292.45 -4.99
BPCL 23949000 18.87 464.20 6.39
RAMCOCEM 1404200 14.88 678.10 0.80
JINDALSTEL 21705000 14.84 178.60 0.65
ESCORTS 3388000 14.37 1171.75 4.16
ZEEL 27093000 8.79 153.75 -0.39
AMARAJABAT 1670000 8.44 704.25 0.18
TORNTPOWER 1860000 6.71 320.70 -0.39
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
M&MFIN 18194400 -16.78 227.90 -3.07
VOLTAS 3184000 -11.97 596.95 -0.09
CANBK 10110000 -11.86 104.00 1.30
MUTHOOTFIN 3425250 -10.71 1231.20 0.31
POWERGRID 30164000 -8.67 173.65 6.01
ADANIENT 20144000 -7.46 167.30 3.41
CONCOR 6350469 -6.81 456.95 2.45
WIPRO 28860800 -6.27 271.35 0.35
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.87 1.08
BANKNIFTY 1.06 0.81
RELIANCE 0.71 0.55
ICICIBANK 0.57 0.44
INFY 1.47 0.86
Historical Volatility
SCRIP HV
POWERGRID 39.34
PEL 77.53
IOC 44.90
M&MFIN 82.21
BRITANNIA 50.92
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Technical & Derivatives Report
July 22, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (July Series) are given as an information and not as a recommendation.
Nifty Spot =
11162.25
FII Statistics for July 21, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
4133.69
3276.66
857.03
129397
9663.05
9.69
INDEX
OPTIONS
179913.06
179129.96
783.10
826187
62278.60
5.61
STOCK
FUTURES
15363.72
16006.86
(643.14) 1316703
91716.71
0.61
STOCK
OPTIONS
4815.87
4799.34
16.53
112973
7890.29
(0.42)
Total 204226.34
203212.82
1013.52
2385260
171548.65
2.70
Turnover on July 21, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
4,13,391 27879.04 -5.69
Index Options
1,78,20,101
11,03,368.56
9.92
Stock Futures
9,86,013 69530.38 17.84
Stock Options
15,38,259
1,16,245.29 22.31
Total 2,07,57,764
13,17,023.27
10.92
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11200 126.55
43.85 56.15 11243.85
Sell 11300 82.70
Buy 11200 126.55
74.75 125.25 11274.75
Sell 11400 51.80
Buy 11300 82.70
30.90 69.10 11330.90
Sell 11400 51.80
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11100 111.95
32.20 67.80 11067.80
Sell 11000 79.75
Buy 11100 111.95
54.55 145.45 11045.45
Sell 10900 57.40
Buy 11000 79.75
22.35 77.65 10977.65
Sell 10900 57.40
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
10500 10600 10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800
Call Put
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July 22, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
306
310
318
322
330
ASIANPAINT 1,686 1,705
1,738
1,758
1,791
AXISBANK
433
439
445
452
458
BAJAJ-AUTO 2,950 2,977
3,017
3,044
3,084
BAJFINANCE 3,043 3,168
3,344
3,468
3,644
BAJAJFINSV 6,106 6,245
6,478
6,617
6,849
BPCL
415
439
460
485
506
BHARTIARTL
555
561
573
579
590
INFRATEL
193
196
200
203
208
BRITANNIA 3,787 3,834
3,922
3,969
4,057
CIPLA
646
654
668
676
690
COALINDIA
131
132
133
134
136
DRREDDY 3,932 3,983
4,057
4,107
4,181
EICHERMOT 18,904
19,510
19,899
20,505
20,894
GAIL
98
101
103
106
107
GRASIM
593
598
607
612
622
HCLTECH
634
643
653
662
672
HDFCBANK 1,120 1,129
1,144
1,153
1,167
HDFC 1,781 1,832
1,867
1,918
1,952
HEROMOTOCO
2,829
2,849
2,867
2,888
2,906
HINDALCO
155
157
160
163
166
HINDUNILVR 2,283 2,301
2,325
2,343
2,367
ICICIBANK
366
373
376
382
386
IOC
85
89
92
96
99
INDUSINDBK
509
516
528
535
547
INFY
918
927
939
948
959
ITC
190
191
193
194
195
JSW STEEL
202
206
208
212
215
KOTAKBANK 1,311 1,335
1,349
1,373
1,387
LT
912
925
934
947
955
M&M
578
583
590
595
602
MARUTI 5,810 5,971
6,060
6,221
6,310
NESTLEIND 17,039
17,157
17,326
17,444
17,613
NTPC
86
87
88
89
90
ONGC
79
81
82
83
84
POWERGRID
160
167
171
177
181
RELIANCE 1,921 1,946
1,962
1,987
2,002
SHREECEM 21,954
22,197
22,504
22,747
23,053
SBIN
189
192
194
197
199
SUNPHARMA
467
472
480
485
493
TCS 2,184 2,205
2,222
2,242
2,259
TATAMOTORS
104
106
108
110
112
TATASTEEL
345
352
356
363
368
TECHM
606
613
623
630
639
TITAN
992
1,004
1,011
1,022
1,029
ULTRACEMCO 3,784 3,824
3,889
3,929
3,994
UPL
445
452
457
464
470
VEDANTA
106
109
110
112
114
WIPRO
262
267
274
279
286
ZEEL
150
152
154
156
158
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Technical & Derivatives Report
July 22, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives sameet.cha[email protected]g.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com