June 03, 2017
Technical Picks | June 03, 2017
Keep booking profits as Nifty approaches the 9700 mark
Sensex (31273) / Nifty (9654)
Exhibit 1: Nifty Weekly chart
During the week gone by, the Nifty index started trading on
a positive note on Monday. The index traded in a narrow
range for next three trading sessions. On Friday, Nifty
opened higher and ended the week with gains of 0.61
percent over its previous week's close. However, for the
entire week, the trading was confined to a narrow range of
125 points with a positive bias as the advances
outnumbered the declines. Amongst sectoral indices, the
Nifty FMCG sector outperformed with gains of 3.51 percent
whereas the Nifty Metal sector witnessed profit booking as
the index corrected by 2.49 percent during the week.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at 29442 / 9130 and 27564 /
Source: Company, Angel Research
8474 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Exhibit 2: Nifty Daily chart
Sensex/Nifty are placed at 30596 / 9491 and 29451 /
9123 levels, respectively.
Future outlook
It’s been a week of consolidation with a mildly positive bias
which was quite evident after such a sharp up move in the
previous week and more importantly, after reaching the
important milestone of
9600. We had anticipated a
possibility of this consolidation phase and in fact, we still
expect it to continue in the forthcoming week as well.
With reference to our previous article, we believe that the
upside in the near term is now limited. In last 4 - 5 months,
we have not used a word ‘cautious’ even on a single
occasion. But, now, we would like to reiterate few key
observations, which are 1) the 127% Reciprocal retracement
Source: Company, Angel Research
of the recent ‘Bullish Flag’ pattern on daily chart is at 9642,
All these key ratios are converging in a band of 100 points
2) The ‘Golden Ratio’ (161% Reciprocal retracement) of the
i.e. 9620 - 9720 and hence, looking at these evidences, we
corrective move from 8968.70 to 7893.80 is at 9624 and
would advise traders to lighten up their positions in the
most importantly, 3) The ‘Multi-year Price Extension’ (127%
mentioned zone. Traders are advised to keep focusing on
of 2252.75 to 6338.50 from 4531.15) is at 9720.
individual stocks which are likely to offer better trading
opportunities. On the other hand, 9581 - 9520 would act
as a strong support zone.
For Private Circulation Only
1
Technical Picks | June 03, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
30,696
30,985
31,159
31,447
31,621
NIFTY
9,499
9,576
9,625
9,702
9,751
NIFTY BANK
22,938
23,157
23,313
23,532
23,689
ACC
1,560
1,601
1,637
1,678
1,714
ADANIPORTS
313
336
347
370
382
AMBUJACEM
233
237
241
244
248
ASIANPAINT
1,105
1,135
1,155
1,184
1,205
AUROPHARMA
464
529
568
632
671
AXISBANK
494
501
509
516
524
BAJAJ-AUTO
2,723
2,788
2,838
2,903
2,953
BANKBARODA
168
173
177
183
187
BPCL
693
709
739
755
785
BHARTIARTL
358
366
373
381
389
INFRATEL
350
363
373
385
395
BOSCHLTD
22,590
23,201
23,738
24,349
24,886
CIPLA
473
501
518
546
563
COALINDIA
255
262
266
273
278
DRREDDY
2,309
2,432
2,503
2,626
2,698
EICHERMOT
27,276
28,228
28,764
29,716
30,252
GAIL
382
392
405
415
428
HCLTECH
840
849
860
869
881
HDFCBANK
1,601
1,618
1,633
1,649
1,665
HDFC
1,521
1,563
1,588
1,630
1,655
HEROMOTOCO
3,499
3,674
3,766
3,941
4,033
HINDALCO
185
191
201
207
216
HINDUNILVR
1,012
1,049
1,076
1,113
1,140
IBULHSGFIN
1,050
1,091
1,128
1,168
1,205
ICICIBANK
306
312
320
326
333
IOC
397
406
420
429
444
INDUSINDBK
1,452
1,483
1,502
1,533
1,551
INFY
944
957
971
984
998
ITC
298
309
314
325
331
KOTAKBANK
947
956
964
973
981
LT
1,703
1,743
1,789
1,829
1,875
LUPIN
1,037
1,102
1,145
1,211
1,254
M&M
1,277
1,348
1,398
1,469
1,519
MARUTI
6,907
7,011
7,129
7,233
7,352
NTPC
149
156
160
166
170
ONGC
167
170
175
179
183
POWERGRID
198
202
206
211
215
RELIANCE
1,286
1,305
1,337
1,356
1,388
SBIN
276
282
287
292
297
SUNPHARMA
476
495
512
532
549
TCS
2,491
2,528
2,562
2,599
2,634
TATAMTRDVR
276
282
288
294
300
TATAMOTORS
464
471
479
487
494
TATAPOWER
78
80
81
83
84
TATASTEEL
468
480
500
512
533
TECHM
339
370
387
417
434
ULTRACEMCO
3,967
4,104
4,182
4,319
4,397
VEDANTA
213
221
234
242
256
WIPRO
520
536
545
561
569
YESBANK
1,377
1,429
1,462
1,514
1,546
ZEEL
501
512
520
532
540
Technical Research Team
For Private Circulation Only
2
Derivatives Review | June 03, 2017
FIIs added fresh longs in the consolidation phase
Nifty spot closed at 9653.50 this week, against a close of 9595.10 last week. The Put-Call Ratio has increased from 1.10 to 1.16
levels and the annualized Cost of Carry is negative at 0.13%. The Open Interest of Nifty Futures increased by 17.71%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a discount of
0.90
Futures
Chg (%)
Chg (%)
points against a discount of 19.30 points to its spot. Next
RAMCOCEM
400800
526.25
724.60
5.66
month future is trading with a premium of 18.90 points.
NATIONALUM
5088000
113.42
66.10
(3.85)
PCR-OI has increased from 1.10 to 1.16 levels on week on
HCC
12084000
101.80
44.00
2.33
week basis. In Nifty options, some open interest addition was
seen in 9700 - 10000 strikes; followed by unwinding in 9500
IOC
29604000
92.25
414.90
(2.83)
strike. While in put option, 9400-9600 strikes added huge
ESCORTS
2472800
73.06
719.85
11.48
positions. At current juncture, highest OI in call option has
BALKRISIND
374800
66.43
1570.35
4.80
shifted from 9600 to 9700 strike; while it remains intact at
9400 put option.
COLPAL
849800
61.01
1032.85
2.73
Stock that added longs last week are TATACOMM,
TORNTPHARM
314400
58.79
1210.65
(0.07)
PCJEWELLER, ESCORTS, CEAT and KSCL. While, fresh shorts
were visible in SINTEX, BHEL, PFC, SUNPHARMA and DLF.
Liquid counters with higher CoC are RCOM, DLF,
Weekly OI losers
TV18BRDCST, SINTEX and KAJARIACER. Stocks with negative
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
CoC are RBLBANK, CEATLTD, DISHTV, ITC and
ORIENTBANK.
MFSL
5015000
(22.39)
621.95
9.89
The Nifty concluded the week with marginal gains over its
AJANTPHARM
338000
(20.43)
1617.80
0.92
previous weekly close. During the week, FIIs added decent
IGL
1386000
(20.40)
1093.10
6.81
amount of longs in Index Futures along with some Index Put
YESBANK
7812700
(13.50)
1484.45
(0.02)
longs. We believe these put buying is mainly to hedge their
longs in Index Futures, which is not a worrisome factor. In
BHARATFORG
2634600
(12.69)
1198.55
5.40
addition, longs formed by them in last series are also intact,
M&MFIN
8412500
(10.96)
389.05
23.45
suggesting they are still optimistic on market. Thus, unless we
NBCC
2949000
(10.39)
197.10
0.66
don’t see any major profit booking or fresh shorting, we
maintain of positive stance on market. However, stock specific
BRITANNIA
346400
(9.89)
3603.30
4.83
approach may fetch better returns in upcoming week.
Weekly change in OI
40,000
Call
Put
30,000
20,000
10,000
0
(10,000)
(20,000)
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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