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July 26
, 2021
Technical & Derivatives Report
Nifty Bank Outlook
(3
5034
)
On Friday, Bank Nifty started on a flat note however after few
minutes it witnessed a nosedive to not only slip towards
Thursday's low but to test the levels of around the 34400 mark.
This dip however got bought into as Bank Nifty gradually moved
higher throughout the remaining part of the session to eventually
end with gains of a percent reclaiming the 35000 mark. After
forming a 'Homing Pigeon' bullish reversal candlestick pattern on
Thursday, the bank nifty formed a bullish candle on Friday that
can be taken as a confirmation candle. Now going with this
pattern formation, 34200 - 33900 is key support and bank nifty
can head higher with immediate resistance placed around 35350
- 35670 levels. Some of the heavyweight from this space showed
outperformance on Friday and hence we recommend having
stock-specific trades with proper exit setup.
Key Levels
Support 1 – 34200 Resistance 1 – 35350
Support 2 – 33900 Resistance 2 – 35670
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Sensex (52976) / Nifty (15856)
The truncated week kick started with a surprising gap down on
Monday owing to some nervousness across the globe. As the day
progressed, the selloff augmented to close below the 15800 mark.
In fact there was a follow through seen to it on the subsequent day
to test sub-15600 levels. Fortunately the global peers had a good
relief move thereafter which resulted in a v-shaped recovery in our
markets in the latter half. Eventually, Nifty ended the action packed
week with negligible losses.
It’s been more than a month now; the Nifty is trapped in a range of
merely 500 points. This certainly is a slender range considering the
fact we are trading at much elevated levels. For the most part of
June, we were confined to domestic triggers only; but as we stepped
into the July month, the global factors started to influence our
markets to a great extent. Unfortunately, global peers experiences
some sell off when Nifty is about to reach the milestone of 16000
and on the other hand, some relief comes when we are at crucial
supports. Last week’s price action is exactly a replica of this. After
undergoing some price correction for first couple of days, we
witnessed a good relief rally to reclaim the important level of 15800
on a weekly closing basis.
Key Levels
Support 1 – 15760 Resistance 1 – 15880
Support 2 – 15680 Resistance 2 – 15960
This certainly bodes well for the bulls but considering the recent
trend, we are still not out of the woods yet. So rather than pre-
empting and getting caught on the wrong foot, we would wait for
Nifty to surpass the sturdy wall of 16000. If this happens then the
next immediate levels to watch out for would be 16200 16400.
Although they may appear not so far levels from 16000, we would
see good stock specific action in this period. Now as we reiterate, if
Nifty has to reach and surpass the magical figure of 16000, the
banking certainly plays a vital role here. It would be very important
for the banking index to surpass the 36000 mark, if we have to see
benchmark at new highs. Until then 35000 – 35500 are to be
considered as intermediate hurdles. On the lower side, the cluster
of supports for Nifty is placed at 15700 15550 15450 and for
BANKNIFTY, 34200 33900 are to be seen as make or break levels.
Any sustainable move below the lower end of this support zone
would reverse the short term trend in the downward direction.
Traders should keep a note of it and position accordingly.
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Technical & Derivatives Report
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Nifty Vs OI
15450
15500
15550
15600
15650
15700
15750
15800
15850
15900
15950
16000
92,000
94,000
96,000
98,000
100,000
102,000
104,000
106,000
108,000
110,000
7/2 7/6 7/8 7/12 7/14 7/16 7/20 7/23
(`000)
Openinterest Nifty
View
It was indeed a volatile week for our market, we saw
index sliding below 15600 levels and smart recovery
in next two sessions led closing above 15850 mark.
FIIs were net sellers in the cash segment to the tune of
Rs. 163 crores. In index futures front, they bought worth
Rs 697 crores with rise in open interest indicating long
formations on Friday.
In F&O space, we hardly saw fresh build-up in both the
indices; the open interest reduction was seen especially
in banking index wherein OI plunged 12.59%. In index
options segment, decent writing was seen in 15800 put
strike; resulting highest open interest shifting to 15800
from 15500. Considering the short covering seen in
index futures segment and writing in ATM puts, it looks
market may continue to strengthen in this week. Hence,
traders are advised trading with positive biasness and
should prefer trading in individual counters.
Comments
The Nifty futures open interest has increased by 2.86%.
Bank Nifty futures open interest has decreased by
18.88% as market closed at 15856.05 levels.
The Nifty July future closed with a discount of 2.95 point
against a discount of 7.10 point in last trading session.
The August series closed at a premium of 36.10 point.
The INDIA VIX decreased from 11.89 to 11.76. At the
same time, the PCR-OI of Nifty increased from 1.10 to
1.15.
Few of the liquid counters where we have seen high cost
of carry are SAIL, MINDTREE, NATIONALUM,
TATACONSUM and AMBUJACEM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
NMDC 95086400 28.99 173.50 -1.56
LALPATHLAB 547000 14.26 3441.85 3.18
SUNPHARMA 44734200 10.53 694.00 1.12
NAUKRI 1363250 10.28 5142.50 -1.52
TORNTPHARM 824000 8.96 3043.25 1.03
SBILIFE 4317000 8.93 1050.45 2.05
NESTLEIND 243550 8.87 18143.15 0.81
INDUSTOWER 20367200 8.52 220.50 -5.16
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
MUTHOOTFIN 3326250 -8.52 1567.15 -2.44
ULTRACEMCO 2323800 -7.35 7490.25 0.08
BHARTIARTL 105097929 -5.75 548.30 0.11
IBULHSGFIN 28206900 -5.54 283.65 3.07
BERGEPAINT 3936900 -5.34 854.25 0.05
POWERGRID 21244000 -5.21 233.00 -0.19
HDFCAMC 1032600 -4.86 2899.60 0.43
BAJAJ-AUTO 2329250 -4.69 3841.95 -0.39
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.15 0.86
BANKNIFTY 0.93 0.88
RELIANCE 0.41 0.37
ICICIBANK 0.67 0.43
INFY 0.49 0.39
Historical Volatility
SCRIP HV
IDEA 100.32
ICICIGI 41.86
JUBLFOOD 45.83
INDUSTOWER 57.49
ITC 33.26
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Technical & Derivatives Report
July 26
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Note: Above mentioned Bullish or Bearish Spreads in Nifty (July Series) are given as an information and not as a recommendation.
Nifty Spot = 15856
.05
FII Statistics for July 23, 2021
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4849.58 4152.90 696.68
150331 12251.17 11.16
INDEX
OPTIONS
297314.41 296325.18 989.23
1105312 89804.82 22.21
STOCK
FUTURES
18904.77 18756.22 148.55
1429380 113949.42 0.77
STOCK
OPTIONS
22378.01 22121.35 256.66
287101 23504.18 (5.41)
Total 343446.77
341355.65
2091.12
2972124
239509.59
7.62
Turnover on July 23, 2021
Instru
ment
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index
Futures
3,32,295 27866.69 0.21
Index
Options
3,71,10,831 31,25,493.35
-67.91
Stock
Futures
10,60,183 88212.85 10.85
Stock
Options
33,21,532 2,80,896.91 -0.57
Total 4,18,24,841 35,22,469.80
-65.23
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 15900 55.35
32.85 67.15 15932.85
Sell 16000 22.50
Buy 15900 55.35
48.00 152.00 15948.00
Sell 16100 7.35
Buy 16000 22.50
15.15 84.85 16015.15
Sell 16100 7.35
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 15800 55.35
24.90 75.10 15775.10
Sell 15700 30.45
Buy 15800 55.35
38.65 161.35 15761.35
Sell 15600 16.70
Buy 15700 30.45
13.75 86.25 15686.25
Sell 15600 16.70
Nifty Put-Call Analysis
,0
1000,000
2000,000
3000,000
4000,000
5000,000
6000,000
7000,000
15000 15100 15200 15300 15400 15500 15600 15700 15800 15900 16000 16100 16200 16300
Call Put
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Daily Pivot Levels for Nifty
Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
663
672
686
694
709
ASIANPAINT 3,046 3,065
3,097
3,116
3,149
AXISBANK
729
742
753
766
777
BAJAJ-AUTO 3,764 3,803
3,864
3,903
3,964
BAJFINANCE 6,097 6,139
6,182
6,224
6,267
BAJAJFINSV 12,831
13,016
13,130
13,315
13,429
BPCL
456
459
462
465
469
BHARTIARTL
519
534
547
562
575
BRITANNIA 3,412 3,426
3,439
3,453
3,466
CIPLA
940
944
951
955
962
COALINDIA
143
143
144
145
146
DIVISLAB 4,777 4,801
4,825
4,849
4,874
DRREDDY 5,333 5,378
5,405
5,449
5,477
EICHERMOT 2,521 2,535
2,557
2,571
2,593
GRASIM 1,517 1,533
1,561
1,577
1,605
HCLTECH
972
983
994
1,004
1,015
HDFCBANK 1,423 1,433
1,445
1,455
1,467
HDFCLIFE
659
662
665
668
671
HDFC 2,453 2,468
2,485
2,499
2,516
HEROMOTOCO 2,797 2,816
2,840
2,859
2,883
HINDALCO
387
390
393
395
399
HINDUNILVR 2,331 2,345
2,368
2,382
2,405
ICICIBANK
641
659
668
686
696
IOC
104
105
106
107
108
INDUSINDBK
966
978
989
1,001
1,012
INFY 1,578 1,584
1,591
1,598
1,605
ITC
204
208
211
215
218
JSW STEEL
704
711
719
726
734
KOTAKBANK 1,682 1,702
1,715
1,735
1,748
LT 1,582 1,597
1,622
1,636
1,661
M&M
754
759
763
769
773
MARUTI 7,217 7,256
7,315
7,354
7,413
NESTLEIND 17,742
17,943
18,083
18,285
18,425
NTPC
117
118
119
120
121
ONGC
114
114
116
116
118
POWERGRID
231
232
233
234
235
RELIANCE 2,082 2,094
2,114
2,126
2,146
SBILIFE 1,012 1,031
1,043
1,062
1,073
SHREECEM 27,651
27,819
28,023
28,191
28,396
SBIN
416
422
426
433
437
SUNPHARMA
674
684
692
701
709
TCS 3,185 3,199
3,220
3,234
3,255
TATACONSUM
762
768
773
779
784
TATAMOTORS
291
293
297
300
304
TATASTEEL 1,262 1,272
1,284
1,293
1,305
TECHM 1,103 1,117
1,129
1,143
1,156
TITAN 1,679 1,690
1,708
1,719
1,737
ULTRACEMCO 7,364 7,427
7,533
7,596
7,702
UPL
810
815
821
826
833
WIPRO
577
588
595
606
613
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July 26
, 2021
*
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