For Private Circulation Only
Technical and Derivatives Review
| January 02, 2021
Market consolidates but the action continues in broader universe
Sensex (47869) / Nifty (14019)
Source: Trading View
Future outlook
The mankind had to witness a lot of unprecedented things in the year gone by. Initially it was very difficult to adjust with the forceful
changes in our lives; but we always try to make our own ways in all the difficulties and this is exactly what has been proven all these
months. The year 2020 was full of shocks and surprises; but as we always say “All’s well that ends well”. We not only stabilized from
the March chaos but also managed to give a stupendous v-shaped recovery in the last nine months to even surpass pre-COVID highs
with some authority.
During the concluding week of the calendar year, Nifty added another couple of percent to Bulls’ kitty and importantly reached yet
another milestone of 14000. Now, there are lots of expectations built as we step into the New Year. With a broader view, there is no
brainer, we are heading for much bigger levels from here on; but it would be unfair to expect the similar kind of linear move that we
have been enjoying since early November. In between, markets are likely to give some corrections, which would be a healthy sign.
For the coming week, we expect the Nifty to slowly and gradually head towards 14150-14200; whereas the key support zone is
placed at 13950 - 13850 levels.
This week, although there was some muted action seen in key indices, the broader market just took off in the last couple of days.
Hence, the real action lies in the broader end of the spectrum, which may continue to provide better trading opportunities. Traders
are advised to keep focusing on thematic bets and should ideally avoid aggressive bets in indices.
For Private Circulation Only
Technical and Derivatives Review
| January 02, 2021
Rollover data indicates long positions intact
Nifty spot closed at 14018.50 this week, against a close of 13749.25 last week. The Put-Call Ratio has decreased from 1.58 to 1.37.
The annualized Cost of Carry is positive at 3.41%. The Open Interest of Nifty Futures has increased by 2.11%.
Derivatives View
Nifty current month future closed with a premium of 35.35 points against a premium of 56.30 points to its spot. Next month future
is trading at a premium of 68 points.
As far as Nifty options activities are concerned, we saw some build-up in 14200-14300 call options and 14000-13900 put options.
Maximum open interest concentration in the weekly series is at 14200 call and 14000 put.
Nifty achieved a milestone of 14000 during the week and ended comfortably above the same. Bank Nifty witnessed some unwinding
of positions while Nifty witnessed long addition. During expiry, the rollovers in Nifty were in line with its average indicating long
positions have been rolled over to the January series. FII’s too continue with their bullish bets at the start of the new series with
Long Short ratio at 75 percent. The open interest data indicates a support in the range of 14000-13900 for the coming week while on
the higher side, it could approach 14200 mark. Hence, traders are advised to trade with a positive bias and look for buying
opportunities on any declines.
Weekly change in OI
Short Formation
Chg (%)
BRITANNIA 2378000 7.36 3589.25 (1.10)
- - - - -
- - - - -
- - - - -
- - - - -
Long Formation
Chg (%)
CANBK 44895600 33.94 134.10 11.19
For Private Circulation Only
Technical and Derivatives Review
| January 02, 2021
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Technical and
Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.cha[email protected]g.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jai[email protected].com
Rajesh Bhosale Technical Analyst rajesh.bhosl[email protected]ng.com
Sneha Seth Derivatives Analyst [email protected]gelbroking.com