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Technical and Derivatives Review

| April 01, 2021

New FY kicks off positively, the broader market outshines

Sensex (50030) / Nifty (14867)

Source: Trading View

Future outlook

After an extended weekend, our markets opened on Tuesday with a good bump up on the back of favourable cues from the global

bourses. The initial lead extended as we witnessed a good broad based participation to clock more than a couple of percent gains.

This was followed by a subdued session with few pockets kept sulking to trim some of the gains. However once again on Thursday,

the buying resumed across the board to reclaim the 14800 mark and with this managed to secure the weekly gains of nearly two and

half a percent to kick off the new Financial Year on a positive note.

Despite being a truncated week, it was not at all short of actions as we saw good traction in some of the individual pockets,

especially on the last session. The index is currently undergoing a time-correction and hence, it remained in a small trading band

throughout the week. As far as levels are concerned, 14900 followed by 15050 remains to be a sturdy wall; but the way its placed

now due to Thursday’s late surge, the possibility of testing and even going beyond this cannot be ruled out. The hourly chart exhibits

a configuration of a bullish ‘Cup and Handle’ pattern and any sustainable move beyond 14900 would strengthen this structure to

attract some buying interest in the heavyweight constituents as well. On the flipside, 14800 – 14670 are to be seen as immediate

supports. The mentioned bullish structure will get negated if Nifty slides below 14670 and hence, one should keep a close tab on

how the overall move pans out in the first half of the forthcoming week.

In the week gone by, the financial stocks did not participate much in Tuesday’s up move but they proved their significance on the

last day as it single-handedly propelled the Nifty beyond 14800 towards the fag end on the weekly expiry session. This space plays a

vital role if our benchmark has to move beyond the 15000 mark. Apart from this, the metal stocks had a mesmerizing rally

throughout the week as some of the steel counters soared as if there is no tomorrow. Yes, the low hanging fruit is already gone for

momentum traders but it would certainly be interesting to see how they perform going ahead. Importantly, the stocks from the cash

segment did exceedingly well after a lull period of nearly four weeks. It’s advisable to focus on such potential movers.

For Private Circulation Only

Technical and Derivatives Review

| April 01, 2021

No clear indication from F&O space

Nifty spot closed at 14867.35 this week, against a close of 14507.30 last week. The Put-Call Ratio has increased from 1.14 to 1.16.

The annualized Cost of Carry is positive at 7.54%. The Open Interest of Nifty Futures has remained unchanged.

Derivatives View

Nifty current month future closed with a premium of 86.00 points against a premium of 113.80 points to its spot. Next month future

is trading at a premium of 134.40 points.

In options segment, we saw some build-up in 14800 and 14900 call options followed by unwinding in 14500 and 14600. On the other

side, build-up remained scattered between 14300-14800 put strikes. Maximum build-up in the weekly series is now placed in 15000

call and 14000 put options.

We kick started the week with an upside gap as suggested by the global markets. The benchmark index rallied sharply on Tuesday to

reclaim 14850 mark. This was followed by some consolidation and once again buying resumed on Thursday to almost touch 14900.

Finally, we concluded the truncated week two and a half percent higher to previous weeks close. Surprisingly, there wasn’t any

change in open interest for Nifty; whereas, banking index rallied mainly due to short covering. We believe decent amount of shorts

are still intact in Bank Nifty considering the rollovers in April series. As we haven’t seen any build-up in Nifty, data remains unclear

for the time being. As far as levels are concerned, 14600-14700 shall now act as a demand zone; whereas, resistance is placed

around 15000 mark.

Weekly change in OI

Short Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

NAUKRI 1442750 50.40 4292.75 (4.51)

PEL

4022700

37.46

1795.30

(1.26)

IDFCFIRSTB

203604000

29.26

56.90

(1.22)

M&MFIN

16584000

22.16

204.05

(1.19)

MUTHOOTFIN

2769000

6.34

1221.30

(0.35)

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

GAIL 48415700 92.37 140.90 6.26

IDEA

664090000

46.83

10.15

10.33

TVSMOTOR

3837400

43.21

591.45

3.17

TVSMOTOR

3837400

43.21

591.45

3.17

TATACONSUM

15711300

41.75

654.30

3.38

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Technical and Derivatives Review

| April 01, 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