Technical Picks | March 4, 2017
Do not hesitate to go long, market gearing up for new highs
Sensex (28832) / Nifty (8898)
During the week gone by, the Nifty index started trading with
Exhibit 1: Nifty Weekly chart
a subdued opening on Monday. While the index traded in a
narrow range for first two trading sessions, the bulls
managed to come back strongly on Wednesday by resuming
the bullish momentum. This was followed by a gap up
opening on Thursday tad below the 9000 mark taking cues
from global bourses. However, right from the word go, the
index witnessed tremendous selling pressure on the back of
stock-specific profit booking. Eventually, due to a range
bound activity on Friday, the Nifty ended the week with a
loss of 0.47 percent over the previous week's close.
Key Moving Averages:
Source: Company, Angel Research
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at
27636
/
8535 and
Exhibit 2: Nifty Daily chart
26754 / 8198 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at
28503
/
8815 and
27670 / 8545 levels, respectively.
Future outlook
Finally, five-week winning streak came to an end for our
markets as we witnessed some consolidation with a minor
negative bias. This consolidation was very much on expected
lines as we had anticipated the trading range of
8982 - 8826 for the entire week. Although, this range
breached in the upward direction but it was with a small
Source: Company, Angel Research
margin as strong bout of profit taking on Thursday pulled
the index below the 8900 mark.
It would be too early to take this call, but, we will not be
surprised to see this up move getting extended towards
Despite all these small intermediate corrective moves, we
9400 - 9600 (price extension of previous up move from
would continue with our optimistic stance and expect the
recent low of 7893.80) over the next few weeks. A strong
index to hit a new all time high soon. Technically speaking,
support is seen in the zone of 8850 - 8800; whereas the
last week we witnessed a completion of ‘Bullish Cup and
immediate resistance level is at 8993. We would reiterate
Handle’ pattern (on weekly as well as monthly chart) which
that the trend is strong and hence, one should look to utilise
we have been anticipating since last month and a half. In
intra-week dips to create fresh longs rather than getting
addition, the ‘RSI-Smoothened’ oscillator on weekly chart
worried about the overbought condition of the market.
has entered the 70 mark, which we believe would provide
an impetus for the next upward leg of the rally.
For Private Circulation Only
1
Technical Picks | March 4, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
28,469
28,651
28,898
29,080
29,328
NIFTY
8,784
8,841
8,917
8,973
9,049
NIFTY BANK
20,126
20,311
20,608
20,793
21,090
ACC
1,357
1,375
1,409
1,428
1,462
ADANIPORTS
283
290
298
304
312
AMBUJACEM
219
222
228
231
237
ASIANPAINT
972
993
1,019
1,040
1,065
AUROPHARMA
655
665
676
686
697
AXISBANK
491
502
515
526
539
BAJAJ-AUTO
2,716
2,774
2,810
2,868
2,904
BANKBARODA
154
157
163
166
172
BHEL
146
152
158
164
171
BPCL
561
597
651
687
741
BHARTIARTL
340
348
360
369
381
INFRATEL
272
290
300
318
328
BOSCH
20,353
20,756
21,473
21,876
22,593
CIPLA
574
581
589
596
604
COALINDIA
310
316
324
330
338
DRREDDY
2,785
2,828
2,888
2,932
2,992
EICHERMOT
21,662
22,376
23,711
24,425
25,760
GAIL
488
504
515
531
542
GRASIM
949
985
1,012
1,048
1,075
HCLTECH
828
840
848
860
867
HDFCBANK
1,352
1,365
1,381
1,394
1,411
HDFC
1,335
1,353
1,384
1,402
1,434
HEROMOTOCO
3,075
3,174
3,230
3,329
3,385
HINDALCO
172
185
193
206
213
HINDUNILVR
843
860
871
889
900
ICICIBANK
268
272
279
283
289
IDEA
102
106
113
117
123
INDUSINDBK
1,251
1,275
1,312
1,336
1,372
INFY
988
1,010
1,022
1,044
1,056
ITC
251
256
263
269
276
KOTAKBANK
778
794
811
827
844
LT
1,437
1,454
1,477
1,494
1,517
LUPIN
1,437
1,456
1,470
1,490
1,503
M&M
1,241
1,282
1,321
1,362
1,401
MARUTI
5,762
5,825
5,938
6,001
6,114
NTPC
147
152
159
163
171
ONGC
188
190
194
197
201
POWERGRID
181
186
193
198
205
RELIANCE
1,148
1,203
1,246
1,301
1,343
SBIN
258
261
268
272
278
SUNPHARMA
656
671
686
701
716
TCS
2,425
2,459
2,485
2,519
2,545
TATAMTRDVR
268
274
280
286
291
TATAMOTORS
439
449
459
469
479
TATAPOWER
79
80
82
84
86
TATASTEEL
467
481
493
507
520
TECHM
478
491
501
513
523
ULTRACEMCO
3,653
3,727
3,795
3,869
3,937
WIPRO
474
484
490
500
506
YESBANK
1,390
1,412
1,439
1,461
1,488
ZEEL
482
492
504
515
527
Technical Research Team
For Private Circulation Only
2
Derivatives Review | March 4, 2017
No signs of reversal on data; declines should be bought into
Nifty spot closed at 8897.55 this week, against a close of 8939.50 last week. The Put-Call Ratio has decreased from 0.98 to 0.97
levels and the annualized Cost of Carry is positive at 3.84%. The Open Interest of Nifty Futures increased by 2.61%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty March month future closed with a premium of 25.25
Futures
Chg (%)
Chg (%)
points against a premium of 16.65 points to its spot. April
BPCL
17677200
72.33
636.40
(9.08)
month future is trading with a premium of 53.35 points.
APOLLOHOSP
1029600
62.09
1249.60
(5.89)
PCR-OI has decreased from 0.98 to 0.97 levels. Last week, we
GAIL
17169000
60.22
515.75
1.08
witnessed huge build-up in 9000 and 9500 call options;
followed by some open interest addition in 8900, 9100 and
EICHERMOT
219725
52.01
23186.30
(7.03)
9300 strikes. While, in put option, 8700 - 8900 strikes added
NTPC
32824000
51.51
156.95
(5.62)
some fresh positions. Highest open interest in current series is
BIOCON
3412200
46.46
1077.95
(3.41)
placed at 9000 call and 8800 put options.
ACC
1553200
43.76
1396.05
(2.99)
Stock that added longs last week are JINDALSTEL, KSCL,
POWERGRID
26796000
39.30
191.95
(4.19)
KTKBANK, SINTEX and BHEL. While, fresh shorts were visible
in BPCL, BHARATFIN, EICHERMOT, IDEA and APOLLOHOSP.
Liquid counters with higher CoC are ZEEL, TATAPOWER, SBIN,
INDUSINDBK and ICICIBANK. Stocks with negative CoC are
Weekly OI losers
COALINDIA, JUSTDIAL, UNIONBANK, NMDC and
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
HINDZINC.
TORNTPHARM
222000
(24.49)
1349.15
3.92
Last week, the Nifty consolidated in a narrow range and
PAGEIND
25950
(19.66)
14306.25
1.45
added some open interest. FIIs activity remained subdued in
last week; wherein, they were marginal seller in index futures.
DISHTV
23744000
(14.24)
95.50
1.76
However, the longs formed by FIIs in February series are still
OIL
2041666
(12.78)
334.80
2.03
intact in the system. Since, there is no sign of reversal seen on
HINDZINC
7068800
(10.64)
310.05
2.38
derivative data front; we may see continuation in upward trend
in the index. Thus, we advise traders to trade with a positive
DABUR
11725000
(7.91)
278.85
2.97
bias and use any decline towards 8800 - 8850 as a buying
HEROMOTOCO
1304400
(6.51)
3238.35
1.60
opportunity.
JUSTDIAL
2479200
(5.66)
538.55
3.56
Weekly change in OI
30,000
Call
Put
25,000
20,000
15,000
10,000
5,000
0
(5,000)
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]
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
For Private Circulation Only
4