www.angelbroking.com
Technical & Derivatives Report
October 22, 2020
O
Nifty
Bank Out
-
(
24635
)
Tuesday’s lackluster session was followed by a gap up opening in
our market on the back of favorable global cues. The banking
index continued its strength and moved closer to the 25000
mark. However, all of a sudden the entire market just took a
nosedive and within a blink of an eye, the BANKNIFTY not only
pare down gains but also slipped inside the negative territory.
The velocity at which markets fell, it was clearly a panic kind of
situation for the bulls. Fortunately, a news flash with respect to
yet another stimulus package from our government applied
brakes on the mayhem and thereafter had a v-shaped recovery to
conclude at the highest point in the last seven months on a
closing basis.
Till the penultimate hour everything looked hunky dory but from
nowhere the volatility spiked up abruptly which was visible in a
massive sell off. But since the undercurrent is strong, any positive
news flow is likely to lift markets higher and this is exactly what
we witnessed in the last hour of the trade. In hindsight, one
would not be able to figure out the mental pain a trader might
have gone through in this short stint but this is how the market
operates.
Exhibit 1: Nifty Daily Chart
Sensex (40707) / Nifty (11938)
Our markets started the session with a gap up opening, courtesy to
the banking stocks which continued with its positive momentum.
The midcaps too joined the upmove and thus, it looked that the
index will take out the 12000 mark easily to kick start the next leg
of upmove. However, in the later half, the index suddenly
nosedived and within no time, Nifty sneaked below 11800 from
12000 mark. But it was not over yet, the index showed a V-shaped
recovery in the last hour and ended this highly volatile session well
above 11900.
Till noon, it seemed that the index is finally geared to resume its
uptrend above 12000 as banking pack as well as the broader
markets were going up quite well. However, many times we have
seen that when things look quite easy, market tends to give some
reality check and that is what we witnessed during the day. The
intraday volatility mostly sidelined the weaker hands and the bulls
continued to dominate at the close. Due to the sharp recovery in
the concluding hour, 11800- 11775 continues to be an important
support, and till this is defended, one should continue to maintain a
positive stance. On the higher side, 12000-12025 certainly has
attracted some profit booking recently but once we see a breakout
above the same, the broader markets would then provide good
trading opportunities
.
Exhibit 2: Nifty Bank Daily Chart
At this juncture, it is advisable to keep a track on the above
mentioned levels. While the banking space continued its
momentum, some other sectors such as Real Estate and Cement
too witnessed good buying interest. Traders are advised to find
look for opportunities in such sectors with good momentum for
better returns.
.Key Levels
Support 1 – 11800 Resistance 1 – 12000
Support 2 – 11775 Resistance2 – 12025
Now technically, the banking index has managed to maintain its
sturdy posture and looking at the daily ‘RSI-Smoothened’
placement above the 70 mark, 24850 25000 looks on cards. On
the flipside, 24400 24200 remains to be a strong as well as
crucial support zone.
Key Levels
Support 1 – 24400 Resistance 1 – 24850
Support 2 – 24200 Resistance 2 – 25000
www.angelbroking.com
Technical & Derivatives Report
October 22, 2020
Nifty Vs OI
10800
11000
11200
11400
11600
11800
12000
12200
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
9/30 10/5 10/7 10/9 10/13 10/15
(`000)
Openinterest Nifty
View
s
Finally, after two days to consolidation we witnessed
some roller coster move on Wednesday. We started-
off the session with an upside gap and rallied beyond
12000 mark. However, sharp sell-off in the latter half
dragged index tad below 11800. Once again, the
support around 11800 became a savior for bulls and
hence smart recovery from this zone led closing above
11900 mark.
FIIs were net buyers in the cash segment to the tune of
Rs. 2108 crores. In index future segment, they bought
worth Rs. 151 crores with some fall in open interest,
suggesting blend of long and short covering in
yesterday’s session.
Despite decent volatity on Wednesday, we hardly saw
any relevant open interest addition in both the indices.
In index options front, build-up was scattered between
11950-12200 call options. On the other side, 11800
put strike added good amount of positions followed
by unwinding in 11700 and 11900 strike. At present,
11800-12000 remains an immediated trading range
and any move beyond this may bring back direction
move. Hence, traders are advised trading in individual
counters for the time being.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 1.80%
Bank Nifty futures open interest has increased by 0.10%
as market closed at 11937.65 levels.
The Nifty October future closed with a discount of 10.20
point against a discount of 0.90 point in last trading
session. The November series closed at a premium of
15.20 point.
The INDIA VIX has increased from 22.69 to 22.92.
At the same time, the PCR-OI of Nifty decreased from
1.46 to 1.42.
Few of the liquid counters where we have seen high
cost of carry are NATIONALUM, PNB, SAIL,
IBULHSGFIN and IDFCFIRSTB.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
GODREJPROP 1124500 36.01 1041.80 10.51
BRITANNIA 1938200 21.03 3397.15 -4.39
ESCORTS 3397900 20.81 1199.85 0.25
HEROMOTOCO 2535300 12.47 3178.40 -2.21
TCS 8810400 9.48 2675.40 -2.12
BALKRISIND 2136000 8.49 1389.15 0.50
SRTRANSFIN 4712355 7.78 665.95 1.06
WIPRO 37548800 7.55 343.45 -0.98
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BATAINDIA 1524050 -10.99 1361.60 -0.52
ACC 2421500 -10.74 1620.15 2.30
POWERGRID 17232000 -9.06 163.75 3.77
CUMMINSIND 1828800 -8.58 464.40 0.29
COALINDIA 46686600 -6.44 115.10 1.32
TATAMOTORS 67573500 -6.28 130.25 0.66
IGL 6051375 -6.16 380.70 0.90
MUTHOOTFIN 3318750 -6.13 1213.15 -1.35
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.42 0.95
BANKNIFTY 1.29 0.95
RELIANCE 0.42 0.44
ICICIBANK 0.83 0.60
INFY 0.40 0.56
Historical Volatility
SCRIP HV
GODREJPROP 60.62
APOLLOTYRE 53.41
POWERGRID 37.61
BRITANNIA 46.00
MINDTREE 61.25
www.angelbroking.com
Technical & Derivatives Report
October 22, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (October Series) are given as an information and not as a recommendation.
Nifty Spot =
11937.65
FII Statistics for October 21, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
5727.55 5576.87 150.68
148122 12148.84 (0.21)
INDEX
OPTIONS
385541.32 384717.71 823.61
965496 79658.56 0.08
STOCK
FUTURES
16854.99 16718.36 136.63
1121132 81059.24 (0.14)
STOCK
OPTIONS
8920.16 8918.08 2.08
105052 8229.73 (3.01)
Total 417044.02
415931.02
1113.00
2339802
181096.37
(0.19)
Turnover on October 21, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
6,43,883 46141.28 67.74
Index Options
4,21,64,391 30,44,477.51 102.37
Stock Futures
9,56,546 70898.23 36.45
Stock Options
17,96,630 1,40,601.95 37.97
Total 4,55,61,450 33,02,118.97 95.88
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11900 143.95
51.55 48.45 11951.55
Sell 12000 92.40
Buy 11900 143.95
89.80 110.20 11989.80
Sell 12100 54.15
Buy 12000 92.40
38.25 61.75 12038.25
Sell 12100 54.15
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11900 116.00
31.50 68.50 11868.50
Sell 11800 84.50
Buy 11900 116.00
56.95 143.05 11843.05
Sell 11700 59.05
Buy 11800 84.50
25.45 74.55 11774.55
Sell 11700 59.05
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300 12400 12500
Call Put
www.angelbroking.com
Technical & Derivatives Report
October 22, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
344
350
355
360
366
ASIANPAINT 2,051 2,082
2,113
2,145
2,176
AXISBANK
478
490
499
510
519
BAJAJ-AUTO 2,969 2,994
3,016
3,041
3,064
BAJFINANCE 3,016 3,124
3,210
3,318
3,403
BAJAJFINSV 5,608 5,756
5,883
6,031
6,158
BPCL
335
342
353
360
371
BHARTIARTL
398
408
414
425
431
BRITANNIA 3,255 3,326
3,453
3,524
3,651
CIPLA
750
758
765
774
780
COALINDIA
112
113
115
117
119
DIVISLAB 2,963 3,021
3,073
3,131
3,183
DRREDDY 4,827 4,937
5,017
5,127
5,207
EICHERMOT 2,103 2,142
2,182
2,222
2,262
GAIL
85
86
87
89
90
GRASIM
763
777
786
800
809
HCLTECH
843
857
874
888
906
HDFCBANK 1,211 1,229
1,240
1,258
1,269
HDFCLIFE
544
553
565
575
587
HDFC 1,978 2,014
2,041
2,076
2,103
HEROMOTOCO 3,049 3,114
3,197
3,262
3,345
HINDALCO
178
182
185
189
191
HINDUNILVR 2,105 2,134
2,165
2,195
2,226
ICICIBANK
402
411
420
429
438
IOC
75
75
76
77
77
INDUSINDBK
577
603
625
651
673
INFY 1,127 1,137
1,146
1,157
1,165
ITC
165
167
168
169
170
JSW STEEL
311
317
321
327
330
KOTAKBANK 1,343 1,368
1,384
1,409
1,425
LT
899
912
921
934
944
M&M
583
592
601
610
620
MARUTI 6,675 6,768
6,858
6,951
7,041
NESTLEIND 15,723
15,877
16,096
16,250
16,468
NTPC
79
81
82
84
85
ONGC
66
67
68
69
69
POWERGRID
153
159
162
168
171
RELIANCE 2,044 2,084
2,138
2,178
2,232
SBILIFE
767
776
790
799
813
SHREECEM 20,338
20,743
21,085
21,490
21,832
SBIN
195
199
203
208
212
SUNPHARMA
477
484
488
494
499
TCS 2,610 2,643
2,696
2,729
2,782
TATAMOTORS
126
128
131
133
135
TATASTEEL
388
396
402
410
416
TECHM
822
834
846
857
869
TITAN 1,216 1,230
1,243
1,258
1,271
ULTRACEMCO 4,358 4,493
4,576
4,711
4,794
UPL
438
446
455
463
472
WIPRO
333
338
344
349
355
www.angelbroking.com
Technical & Derivatives Report
October 22, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: technicalresearch-cso@angelbroking.com
For Derivatives Queries E-mail: derivatives.desk@angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel
Broking Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide
registration number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory
authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed
or co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate
the contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this
report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we
cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this
document. While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there
may be regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives sameet.chavan@angelbroking.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com
Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com