Technical and Derivatives Review | November 02, 2018
Delight for traders ahead of Diwali
Sensex (35012 ) / Nifty (10553)
Source: Trading View
Future outlook
Pre-Diwali week brought back some joy in the traders’ / Investors’ fraternity. Few macro factors like Crude Oil correcting from higher
levels as well domestic currency softening led to this much awaited hope rally. There were couple of tentative attempts seen from
the markets; but eventually strong buying momentum lifted index significantly higher from last week’s low.
Last week, we saw selling momentum getting exhausted and hence, some reversal was needed for market to trigger this short
covering move. We got this reversal in the form of Nifty surpassing last Friday’s high of 10129 and since then there has been no
stopping. Now with Friday’s move, we are well above daily 20-EMA and hence, we expect continuation of this relief move towards
10700-10800 in days to come. It’s advisable to keep booking profits if Nifty reached this mentioned resistance zone. This is seen as a
crucial hurdle because we can see multiple technical factors converging around it. Firstly, the downside gap area created on October
4 which coincides with daily ‘200-SMA’ as well as ‘89 EMA’. Hence, one should stay light around it and wait for further developments
to happen on charts.
On the lower side, 10480 followed by 10400 are seen as strong support levels for the forthcoming week. On Friday, we saw some
profit booking happening in the midcap universe who had a stellar move throughout the week. Hence, one needs to be very agile
now while making stock selection.
We take this opportunity to wish everyone a HAPPY DIWALI and a Prosperous New Year!!!.
For Private Circulation Only
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Technical and Derivatives Review | November 02, 2018
Fresh longs hints scope for further upside
Nifty spot closed at 10553 this week, against a close of 10030 last week. The Put-Call Ratio has increased from 1.44 to 1.53 and the
annualized Cost of Carry is positive at 3.08%. The Open Interest of Nifty Futures increased by 4.12%.
Derivatives View
Nifty current month future closed with a premium of 24.05 points against a premium of 24.10 points to its spot. Next month future
is trading with a premium of 70.40 points.
As far as Nifty options activities for the week are concerned, some build-up was seen in 10700 and 10800 call options. On the flip
side, 10200-10500 put options added decent amount of positions. Maximum open interest for November series now stood at 10700
followed by 10800 call and 10000 followed by 10200 put options.
It was indeed one of the fabulous weeks for our market, as the benchmark index rallied more than 5% in a week after quite some
time. The Nifty rallied towards 10600 from the strong support zone of 10000 to conclude the week above 10550 mark. In F&O space,
we saw fresh long formation in Nifty and some short covering took place in banking index. Meanwhile, we also saw decent writing in 10500
and 10600 put options on Friday’s session. Considering the above data points, we expect continuation of recent upmove towards 10750-
10800; hence, traders are advised trading with a positive bias in the near term.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Pric
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%
VOLTAS
6338000
75.52
538.15
8.35
COALINDIA
27847600
91.76
263.00
(6.61)
IGL
3580500
73.14
282.55
12.35
KOTAKBANK
12285600
11.52
1133.45
(2.35)
AMBUJACEM
17527500
59.34
203.90
6.59
HINDZINC
7782400
9.95
265.45
(2.14)
CUMMINSIND
1090600
52.75
772.05
14.23
HEXAWARE
6072000
2.85
313.20
(2.41)
DIVISLAB
3384800
45.05
1502.95
19.59
DABUR
15492500
0.25
370.00
(6.78)
Weekly change in OI
For Private Circulation Only
2
Technical and Derivatives Review | November 02, 2018
Technical and Derivatives Team:
Sameet Chavan
Chief Analyst - Technical & Derivatives
[email protected]
Ruchit Jain
Technical Analyst
[email protected]
Rajesh Bhosale
Technical Analyst
[email protected]
Sneha Seth
Derivatives Analyst
[email protected]
Research Team Tel: 022 - 39357600
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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