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Technical & Derivatives Report
July 23, 2020
Nifty Bank Outlook - (22883)
In last couple of days, the banking index has started
outperforming our benchmark and yesterday too, the opening
was strong above 23000, courtesy to bumper start in AXIS BANK
post it’s stellar quarterly numbers. However, within blink of an eye,
the early morning lead disappeared in both major indices. In fact,
after regaining some momentum, our markets took a nosedive on
the back of sell off seen in global peers. Fortunately the banking
space once again saw decent recovery to conclude the volatile day
on a positive note.
Unlike recent trend, the Bank Nifty is showing strength, which
certainly is an encouraging sign for our markets. Practically our
markets are extremely overbought but they are reluctant to fall. In
a normal scenario, we would have expected some correction from
current levels; but the way Banknifty is shaped up, we will not be
surprised to see extended move from hereon. If Banknifty
manages to stay beyond 23000-23100 we could see banking
space leading the charge in next leg of the rally. On the flip side,
22600-22500 is likely to provide strong support. However having
said that one shouldn’t be too complacent and hence, should
ideally keep booking profits in rallies.
Key Levels
Support 1 – 22600 Resistance 1 – 23000
Support 2 – 22500 Resistance 2 – 23100
Exhibit 1: Nifty Daily Chart
Sensex (37872) / Nifty (11133)
Nifty started trading with another gap up above the 11200 mark,
however, the index corrected from the opening ticks in the first half
an hour of trade. It then faced resistance during intraday pullback
towards 11200 and corrected in the later half to register a low of
11060. Due to some recovery from the low at the end, Nifty
registered a marginal loss and ended at 11132.60.
As the Nifty approached the 78.6% retracement level, it seemed that
traders preferred for some profit booking as the index showed signs
of boredom and corrected from the higher levels. However, the
banking and the financial space kept the market on toes as some of
the stocks from this space outperformed the broader markets which
led to a relative outperformance in Bank Nifty. As mentioned in our
previous article, Nifty is trading near the crucial hurdle and hence it
is wise for traders to book profits and take some money off the table.
However, as of now, there are no signs of reversal and hence, we do
not advise taking any contra trades.
Exhibit 2: Nifty Bank Daily Chart
Next couple of sessions would be crucial to determine the near term
trend and traders are advised to trade with a stock specific approach
and keep booking timely profits. The near term supports for the
index are placed around 11040 and 10960 whereas resistance is
seen in the range of 11200-11250.
Key Levels
Support 1 – 11040 Resistance 1 – 11200
Support 2 – 10960 Resistance 2 – 11250
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Technical & Derivatives Report
July 23, 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
Once again our markets started with a gap up opening
however from the word go Nifty witnessed some
pressure from the higher levels. Subsequently, Index
traded choppy within a range to end with loss of 0.27%
at 11132.60.
FIIs were net buyers in the cash market segment to the
tune of Rs. 1666 crores. In index futures, they bought
worth 337 crores with increase in open interest
indicating long formations in yesterday’s session
.
Post a positive opening, Nifty witnessed some
correction but Bank Nifty showed strength and
outperformed the benchmark. Some long formations
were seen in the Bank Nifty index yesterday. FII's bought
equities worth more than 1600 crores while they formed
some longs in index futures as well. The put call ratio of
Nifty which was in overbought zone at 1.87 has cooled-
off a bit upto 1.68. In options segment, 11100-11300
calls options added open interest while 11000 and
11050 put option too added fresh open interest.
Options data indicates support in the range of 11100-
11050 and resistance around 11200. Traders can look
for buying opportunity in Bank Nifty on dips for today's
expiry
.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 0.59%
Bank Nifty futures open interest has increased by 6.83%
as market closed at 11132.60 levels.
The Nifty July future closed with a discount of 22.05 point
against a premium of 8.3 point in last trading session. The
August series closed at a discount of 16.65 point.
The INDIA VIX has increased from 24.43 to 24.88
At the same time, the PCR-OI of Nifty decreased from
1.87 to 1.68.
Few of the liquid counters where we have seen high cost
of carry are L&TFH, ZEEL, GMRINFRA, TORNTPHARMA,
AND NATIONALUM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
M&MFIN 25227300 38.65 153.85 14.34
GMRINFRA 144000000 24.71 20.75 4.25
IDEA 370720000 23.68 8.55 2.40
BALKRISIND 2267200 20.60 1257.50 0.78
CANBK 12140000 20.08 102.10 -2.57
ZEEL 31263000 15.39 157.00 2.27
KOTAKBANK 10772400 11.07 1342.35 -1.99
CHOLAFIN 7395000 10.66 220.90 4.98
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
JINDALSTEL 17855000 -17.74 173.40 -3.01
ESCORTS 2900700 -14.38 1203.75 2.75
UJJIVAN 2937000 -10.40 253.45 1.30
POWERGRID 28164000 -6.63 179.65 3.45
CENTURYTEX 2602600 -6.58 308.15 0.42
HEROMOTOCO 2193600 -6.22 2768.00 -2.81
BHARATFORG 5731500 -6.03 387.20 0.56
APOLLOHOSP 905500 -5.63 1481.15 -0.71
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.68 1.12
BANKNIFTY 1.16 0.91
RELIANCE 0.82 0.49
ICICIBANK 0.58 0.50
INFY 1.28 0.97
Historical Volatility
SCRIP HV
M&MFIN 83.15
MUTHOOTFIN 65.54
PVR 64.06
AXISBANK 76.54
POWERGRID 39.51
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Technical & Derivatives Report
July 23, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (July Series) are given as an information and not as a recommendation.
Nifty Spot =
11132.60
FII Statistics for July 22, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
4570.03
4232.63
337.40
133040
9963.45
2.82
INDEX
OPTIONS
308021.92
307318.52
703.40
866829
65450.74
4.92
STOCK
FUTURES
17077.06
17438.95
(361.89) 1318313
91212.28
0.12
STOCK
OPTIONS
6732.63
6507.86
224.77
103581
7203.80
(8.31)
Total 336401.64
335497.96
903.68
2421763
173830.27
1.53
Turnover on July 22, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
4,87,092 32671.07 17.19
Index Options
2,92,91,512
17,74,211.33
60.80
Stock Futures
10,35,659
72669.73 4.52
Stock Options
15,77,631
1,19,229.68 2.57
Total 3,23,91,894
19,98,781.81
51.77
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11200 147.60
49.95 50.05 11249.95
Sell 11300 97.65
Buy 11200 147.60
86.95 113.05 11286.95
Sell 11400 60.65
Buy 11300 97.65
37.00 63.00 11337.00
Sell 11400 60.65
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11100 138.00
39.15 60.85 11060.85
Sell 11000 98.85
Buy 11100 138.00
67.00 133.00 11033.00
Sell 10900 71.00
Buy 11000 98.85
27.85 72.15 10972.15
Sell 10900 71.00
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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Technical & Derivatives Report
July 23, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
304
308
313
317
323
ASIANPAINT 1,662 1,679
1,708
1,724
1,753
AXISBANK
450
465
475
489
499
BAJAJ-AUTO 2,850 2,918
2,974
3,042
3,098
BAJFINANCE 3,116 3,184
3,262
3,331
3,409
BAJAJFINSV 6,078 6,213
6,406
6,541
6,734
BPCL
437
444
454
461
472
BHARTIARTL
556
563
569
576
582
INFRATEL
195
198
201
204
207
BRITANNIA 3,707 3,756
3,840
3,889
3,974
CIPLA
645
654
666
674
686
COALINDIA
131
132
135
136
138
DRREDDY 3,967 4,014
4,072
4,119
4,177
EICHERMOT 19,420
19,655
19,978
20,213
20,536
GAIL
98
100
103
104
107
GRASIM
585
593
603
611
621
HCLTECH
636
643
650
658
665
HDFCBANK 1,103 1,114
1,129
1,141
1,156
HDFC 1,830 1,855
1,877
1,903
1,925
HEROMOTOCO
2,687
2,727
2,794
2,834
2,901
HINDALCO
154
157
160
163
167
HINDUNILVR 2,185 2,217
2,273
2,305
2,362
ICICIBANK
368
374
382
389
396
IOC
90
91
93
94
95
INDUSINDBK
496
505
517
525
537
INFY
893
906
922
935
951
ITC
190
193
196
199
201
JSW STEEL
198
203
208
213
218
KOTAKBANK 1,311 1,327
1,347
1,362
1,382
LT
893
907
924
938
955
M&M
565
579
595
609
625
MARUTI 5,835 5,919
6,024
6,108
6,213
NESTLEIND 16,759
16,955
17,198
17,394
17,637
NTPC
87
89
91
92
94
ONGC
81
82
83
84
84
POWERGRID
171
175
178
183
186
RELIANCE 1,942 1,973
1,992
2,022
2,041
SHREECEM 21,529
21,754
22,145
22,370
22,760
SBIN
186
189
193
196
200
SUNPHARMA
462
468
478
484
494
TCS 2,155 2,173
2,202
2,220
2,249
TATAMOTORS
101
103
106
109
112
TATASTEEL
337
343
353
360
369
TECHM
604
611
619
626
634
TITAN
996
1,027
1,046
1,077
1,097
ULTRACEMCO 3,801 3,832
3,869
3,899
3,936
UPL
441
450
457
467
474
VEDANTA
105
109
113
117
121
WIPRO
258
262
268
271
277
ZEEL
145
151
155
161
165
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Technical & Derivatives Report
July 23, 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.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
