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Technical & Derivatives Report

August 24, 2020

Nifty Bank Outlook - (22300)

On Friday, Bank Nifty started with a gap up opening and it

remained within a range throughout the session to end with gains

of 1.36% tad at 22300 levels.

On the daily chart, the bank index for the last one month is trading

in a range of 21000 and 22500. With the last week's activity, the

base has now shifted higher towards 21400 and we sense the next

directional move can only be seen on a breakout from 21400 -

22500 levels. Till then traders are advised to focus on individual

stocks within the basket as they are giving trading opportunities

on both sides of the trend. Immediate support is placed around

Friday's gap at 22080 followed by Thursday's low at 21886.

Key Levels

Support 1 – 22080 Resistance 1 – 22500

Support 2 – 21886 Resistance 2 – 22670

Exhibit 1: Nifty Daily Chart

Sensex (38435) / Nifty (11372)

We kick started the last week higher on Monday on the back of a

cheerful mood across the globe. This was followed by a strong

trading session where we witnessed some robust moves in index

heavyweights as well as the broader market. During the remaining

part of the week, index just trapped in a range and had extremely

lethargic moves to register its highest weekly close after February

20, 2020.

Barring the first couple of days, it was once again a boring week for

index specific traders. Although, the Banking, Metal and Capital

Goods managed to chip in to some extent, but the real outshining

space has been the mid and small cap universe. Clearly, there has

been no stopping for this space and especially the way these stocks

just took off in the last three weeks. When midcap rally starts, it

generally creates a euphoric situation and this is clearly what we are

experiencing for the past few days. Nobody knows when and where

it’s going to stop and at the same time, it’s hard not to participate

also. The overall structure remains sturdy; but we believe that sooner

or later, the market is likely to witness some correction, which would

be healthy in the longer run. In the last five months, forget bearish,

we did not even sound cautious and used all dips to get into the

market. But now looking at a few observations, we do not want to

maintain similar optimism purely with the short-term view.

Key Levels

Support 1 – 11300 Resistance 1 – 11460

Support 2 – 11250 Resistance 2 – 11500

Exhibit 2: Nifty Bank Daily Chart

On the daily chart, we can see a small ‘Rising Wedge’ and ‘Bearish

Wolfe Wave’ pattern and a move below 11250-11200 would

confirm a near term reversal to undergo some price correction in

coming days. As far as the NIFTY MIDCAP 50 index is concerned,

although it has surpassed the weekly ‘200-SMA’ marginally, we

advise taking some money off the table now and aggressive bets

should ideally be avoided overnight. Adding to all this, we would like

to draw attention towards an important development in ‘US DOLLAR

INDEX’. We have seen massive correction in this over the past few

months, which has triggered some gravity defying moves in equity

markets; but now this index seems to have rebounded from key

supports along with the ‘Positive Divergence’ in RSI. Hence, further

pullback in the DOLLAR index can lead to some corrective moves

going forward. By mentioning all these points, we do not expect a

complete reversal, rather such intermediate correction is considered

a healthy development and provides better opportunities for those

who have missed the bus in the last few months.

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Technical & Derivatives Report

August 24, 2020

Nifty Vs OI

11000

11050

11100

11150

11200

11250

11300

11350

11400

11450

11,000

11,100

11,200

11,300

11,400

11,500

11,600

11,700

11,800

11,900

12,000

8/10 8/11 8/12 8/13 8/14 8/17 8/18 8/19 8/20 8/21

(`000)

Openinterest Nifty

View



Nifty rallied higher during the week upto 11460, and

then consolidated at the end of the week to register

weekly gains of about 200 points.



FIIs were net buyers in the cash market segment to the

tune of Rs. 410 crores. In index futures, they bought

worth 1236 crores with increase in open interest

indicating long formations and short covering on

Friday



During the week, FIIs added net longs in index futures

and 60% of their positions are on the long side. The

options data hints at a resistance around the 11500

mark while supports are placed at 11300 and 11200.

The index could consolidate within this range and

hence, traders are advised to trade with a stock specific

approach at the start of this week and watch for further

developments as we approach the monthly expiry day.

mme



The Nifty futures open interest has increased by 2.17%

Bank Nifty futures open interest has decreased by 3.36%

as market closed at 11371.6 levels.



The Nifty August future closed with a premium of 5.6

point against a discount of 6.8 point in last trading

session. The September series closed at a premium of

17.6 point.



The INDIA VIX has decreased from 20.62 to 19.94

At the same time, the PCR-OI of Nifty increased from 1.32

to 1.54.



Few of the liquid counters where we have seen high cost

of carry are BANKBARODA, RBLBANK, JINDALSTEL,

GMRINFRA AND IDEA.

OI Gainers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

BHEL 84777000 52.00 40.65 6.10

GMRINFRA 120060000 32.80 24.30 9.64

SAIL 60420000 18.75 42.45 1.91

MFSL 2637700 17.22 557.35 3.87

PNB 87444000 13.15 35.65 1.42

BOSCHLTD 112850 10.69 14196.95 3.05

L&TFH 36964800 10.38 67.75 -1.45

MOTHERSUMI 26453000 8.47 117.55 -1.67

OI Losers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

RBLBANK 19968000 -23.15 184.15 1.76

UJJIVAN 1643400 -21.53 251.45 -1.16

EQUITAS 12828800 -14.49 56.40 -0.53

CENTURYTEX 2080400 -11.60 340.90 0.95

TORNTPOWER 2598000 -10.91 355.15 -1.68

MUTHOOTFIN 3754500 -10.70 1182.00 -0.68

VOLTAS 2695000 -9.75 659.30 -1.42

NTPC 53466000 -8.68 105.95 4.74

Put-Call Ratio

SCRIP PCR-OI PCR-VOL

NIFTY 1.54 0.94

BANKNIFTY 0.97 0.84

RELIANCE 0.57 0.43

ICICIBANK 0.48 0.53

INFY 0.54 0.48

Historical Volatility

SCRIP HV

GMRINFRA 54.54

PAGEIND 48.07

NTPC 39.94

POWERGRID 38.40

ASIANPAINT 40.83

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Technical & Derivatives Report

August 24, 2020

Note: Above mentioned Bullish or Bearish Spreads in Nifty (August Series) are given as an information and not as a recommendation.

Nifty Spot =

11371.60

FII Statistics for August 21, 2020

Detail Buy

Sell Net

Open Interest

Contracts

Value

(in Cr.)

Change

(%)

INDEX

FUTURES

3369.00

2132.56

1236.44

129709

10121.76

2.64

INDEX

OPTIONS

83722.67

83041.46

681.21

663153

52648.36

15.98

STOCK

FUTURES

19275.76

18960.41

315.35

1287766

90472.57

(0.14)

STOCK

OPTIONS

7087.22

7122.11

(34.89) 96319

6852.74

(3.55)

Total 113454.65

111256.54

2198.11

2176947

160095.43

4.28

Turnover on August 21, 2020

Instrument

No. of

Contracts

Turnover

( in Cr. )

Change

(%)

Index Futures 2,86,857 19562.75 -26.60

Index Options 98,02,989 6,84,142.05 -79.38

Stock Futures 9,91,801 70976.45 15.34

Stock Options 14,64,969 1,10,815.00 20.13

Total 1,25,46,616

8,85,496.25 -74.69

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 11400 75.35

41.05 58.95 11441.05

Sell 11500 34.30

Buy 11400 75.35

62.70 137.30 11462.70

Sell 11600 12.65

Buy 11500 34.30

21.65 78.35 11521.65

Sell 11600 12.65

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 11300 57.40

23.15 76.85 11276.85

Sell 11200 34.25

Buy 11300 57.40

36.00 164.00 11264.00

Sell 11100 21.40

Buy 11200 34.25

12.85 87.15 11187.15

Sell 11100 21.40

Nifty Put-Call Analysis

500,000

1000,000

1500,000

2000,000

2500,000

3000,000

3500,000

4000,000

10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000

Call Put

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Technical & Derivatives Report

August 24, 2020

Daily Pivot Levels for Nifty Constituents

Scrips

PIVOT

ADANIPORTS

349

352

356

358

362

ASIANPAINT 1,845 1,901

1,937

1,994

2,030

AXISBANK

432

436

441

445

449

BAJAJ-AUTO 3,018 3,036

3,055

3,073

3,092

BAJFINANCE 3,343 3,366

3,403

3,426

3,463

BAJAJFINSV 6,197 6,240

6,303

6,346

6,409

BPCL

402

406

412

417

423

BHARTIARTL

508

514

522

528

536

INFRATEL

196

198

199

201

203

BRITANNIA 3,840 3,861

3,887

3,908

3,934

CIPLA

752

756

763

768

775

COALINDIA

137

138

140

141

143

DRREDDY 4,448 4,469

4,494

4,515

4,541

EICHERMOT 21,311

21,507

21,675

21,871

22,039

GAIL

100

101

102

103

104

GRASIM

662

670

676

684

691

HCLTECH

696

701

708

713

720

HDFCBANK 1,055 1,071

1,080

1,095

1,104

HDFC

588

593

601

606

614

HEROMOTOCO

1,768

1,786

1,805

1,823

1,843

HINDALCO 2,921 2,977

3,013

3,070

3,106

HINDUNILVR

190

193

198

201

206

ICICIBANK 2,178 2,190

2,199

2,211

2,221

IOC

364

368

370

374

376

INDUSINDBK

INFY

507

510

516

519

525

ITC

936

942

953

959

970

JSW STEEL

195

196

197

199

200

KOTAKBANK

276

279

283

286

291

LT 1,320 1,330

1,341

1,351

1,362

M&M

981

987

999

1,005

1,017

MARUTI

600

605

613

618

626

NESTLEIND 6,882 6,928

6,996

7,042

7,110

NTPC 16,061

16,311

16,501

16,751

16,941

ONGC

102

105

109

111

POWERGRID

RELIANCE

180

184

187

192

195

SHREECEM 2,049 2,065

2,094

2,110

2,139

SBIN 21,928

22,123

22,295

22,490

22,663

SUNPHARMA

195

197

199

201

203

TCS

517

525

532

539

546

TATAMOTORS 2,224 2,236

2,254

2,266

2,284

TATASTEEL

118

119

122

123

126

TECHM

417

423

432

438

448

TITAN

726

730

733

736

740

ULTRACEMCO 1,122 1,130

1,137

1,145

1,152

UPL 4,114 4,151

4,177

4,214

4,239

VEDANTA

483

488

496

501

509

WIPRO

269

271

275

277

281

ZEEL

180

186

195

201

210

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Technical & Derivatives Report

August 24, 2020

Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com

For Technical & Derivatives Queries E-mail: technic[email protected]

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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.

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While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be

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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