September 02, 2017
Technical Picks | September 02, 2017
Time-wise pain continues, focus on individual stocks
Sensex (31892) / Nifty (9974)
Exhibit 1: Nifty Weekly chart
Trading for the week began on a positive note as the
index opened higher owing to positive global cues.
However, once again, some geopolitical uncertainty
spooked traders’ sentiments, which eventually resulted
into a sharp correction on Tuesday. Contrary to this
move, the index regained strength after a gap up
opening the very next day to recover complete losses.
Such volatility was certainly a nightmare for the traders
and both counterparties fought fervently to take control
on the market proceedings. Eventually, the bulls
managed to take a firm grip on the index towards the fag
end to conclude above the 9950 on weekly basis.
Key Moving Averages:
Source: Company, Angel Research
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at 31127 / 9660 and 28587 /
Exhibit 2: Nifty Daily chart
8810 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at 31687 / 9883 and 31047 /
9638 levels, respectively.
Future outlook
Markets are undergoing a typical phase during which
traders struggle to find clear direction in the index. At
such times, they tend to find alternatives in individual
stocks as the picture can be much clearer than the
benchmarks. This is what we experienced in the
concluded week. As far as index is concerned, last day of
the week was slightly encouraging.
Source: Company, Angel Research
Since last couple of weeks, the Nifty has been vacillating
within the boundaries of a small ‘Triangle’ pattern. Due
Rather, the way individual stocks have shown their
to first couple of day’s action, prices precisely tested both
ends of the pattern and eventually on Friday, managed to
outperformance is quite encouraging and hence, one
traverse the upper range at 9940. This ongoing optimism
should look to capitalize on such opportunities rather
may push the index towards 10000 - 10040. But,
than focusing on benchmarks. For the coming week,
looking at the weekly chart, we continue to mention that
9920 - 9850 would be seen as immediate and a crucial
the market has slipped into consolidation mode with a
support zone.
short term perspective and hence, traders should ideally
avoid trading aggressively in such moves.
For Private Circulation Only
1
Technical Picks | September 02, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
31,149
31,521
31,732
32,104
32,316
NIFTY
9,714
9,844
9,914
10,044
10,114
NIFTY BANK
23,953
24,193
24,344
24,584
24,735
ACC
1,761
1,789
1,811
1,839
1,861
ADANIPORTS
371
383
390
402
410
AMBUJACEM
269
276
280
287
292
ASIANPAINT
1,094
1,155
1,187
1,248
1,280
AUROPHARMA
708
733
748
773
787
AXISBANK
492
500
506
514
521
BAJAJ-AUTO
2,621
2,769
2,852
3,000
3,083
BANKBARODA
132
135
140
144
149
BPCL
487
512
526
551
565
BHARTIARTL
410
416
427
433
444
INFRATEL
357
368
379
390
400
BOSCHLTD
20,448
21,308
22,260
23,120
24,072
CIPLA
551
560
570
579
589
COALINDIA
231
235
240
243
248
DRREDDY
1,925
2,071
2,152
2,298
2,379
EICHERMOT
30,104
30,938
31,454
32,288
32,804
GAIL
364
374
382
392
400
HCLTECH
819
842
864
887
908
HDFCBANK
1,719
1,743
1,762
1,787
1,806
HDFC
1,697
1,728
1,756
1,788
1,816
HEROMOTOCO
3,740
3,894
3,993
4,148
4,247
HINDALCO
220
232
238
250
257
HINDUNILVR
1,162
1,189
1,206
1,233
1,250
IBULHSGFIN
1,171
1,197
1,217
1,243
1,263
ICICIBANK
294
296
299
302
305
IOC
412
430
447
465
481
INDUSINDBK
1,618
1,655
1,675
1,713
1,733
INFY
884
902
928
946
972
ITC
277
280
282
286
287
KOTAKBANK
948
970
984
1,006
1,020
LT
1,108
1,123
1,139
1,155
1,171
LUPIN
958
977
993
1,012
1,028
M&M
1,301
1,324
1,356
1,380
1,412
MARUTI
7,374
7,593
7,714
7,933
8,054
NTPC
158
163
169
174
179
ONGC
154
157
159
162
164
POWERGRID
210
213
217
220
224
RELIANCE
1,499
1,555
1,586
1,641
1,672
SBIN
270
274
278
282
286
SUNPHARMA
464
475
488
499
511
TCS
2,397
2,427
2,466
2,496
2,535
TATAMTRDVR
213
219
224
230
234
TATAMOTORS
368
379
386
398
404
TATAPOWER
75
78
79
82
83
TATASTEEL
619
635
644
660
669
TECHM
414
419
427
432
441
ULTRACEMCO
3,861
3,930
3,985
4,054
4,109
VEDANTA
291
303
309
321
328
WIPRO
285
291
296
301
306
YESBANK
1,688
1,732
1,756
1,800
1,824
ZEEL
504
514
520
530
537
Technical Research Team
For Private Circulation Only
2
Derivatives Review | September 02, 2017
Nifty PCR-OI on the higher side, stay cautious
Nifty spot closed at 9974.40 this week, against a close of 9857.05 last week. The Put-Call Ratio has increased from 1.22 to 1.38
levels and the annualized Cost of Carry is positive at 4.46%. The Open Interest of Nifty Futures decreased by 34.60%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 32.90
Futures
Chg (%)
Chg (%)
points against a premium of 50.30 points to its spot. Next
NESTLEIND
131100
43.59
7060.10
6.28
month future is trading with a premium of 59.80 points.
BERGEPAINT
1966800
25.56
251.60
2.44
PCR-OI has increased from 1.22 to 1.38 levels on W-o-W
GRASIM
3005250
23.75
1170.75
3.19
basis. Being start of new series, the overall build-up is quite
scattered between
9900-10500 call and
9500-1000 put
IBREALEST
48030000
22.12
247.80
5.92
options. Highest open interest in September series is placed at
NHPC
27918000
21.22
28.85
(3.51)
10000 call and 9700 put option.
NATIONALUM
12048000
19.52
75.30
7.11
Stock that added longs last week are RAYMOND,
APOLLOTYRE
11304000
17.97
258.00
(0.04)
CHENNPETRO, BAJAJ-AUTO, IBREALEST and MOTHERSUMI.
While, fresh shorts were visible in NHPC, INDIANB,
CHOLAFIN
345000
15.77
1156.70
0.36
PCJEWELLER, BANKBARODA and GLENMARK. Liquid counters
with higher CoC are GMRINFRA, HCC, JPASSOCIAT,
IDFCBANK and RPOWER. Stocks with negative CoC are PTC,
Weekly OI losers
NIITTECH, RELINFRA, RECLTD and POWERGRID.
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Last week, the benchmark index (NIFTY) rallied 1% with fall in
RBLBANK
3846000
(76.67)
537.65
6.24
open interest on WoW basis, mainly due to expiry. Rollover in
Nifty (57.96%) is lowest in past one year. In the series gone
VGUARD
1683000
(40.89)
186.60
1.77
by, FIIs have been relentless sellers in equities with a
INFRATEL
6983600
(36.90)
382.10
(1.18)
whopping figure of Rs.
17415 crores (Highest after
RELCAPITAL
7564500
(30.54)
858.30
11.27
November 2016). In entire August series, FIIs formed huge
amount of short positions in index futures and also rolled
CADILAHC
2057600
(30.22)
509.65
2.75
decent portion of it. At the same time, they exited 35% of
ALBK
11690000
(28.19)
69.75
1.31
their longs formed in the preliminary stage of the rally seen
SHREECEM
23650
(28.01)
17899.90
4.87
this year. All these evidences suggest limited steam left in
the market and any unfavorable trigger could result into yet
KAJARIACER
528000
(27.63)
713.85
0.99
another round of profit booking.
Weekly change in OI
For Private Circulation Only
3
Research Team Tel: 022 - 39357800
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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