May 06, 2017
Technical Picks | May 06, 2017
Profit booking at record highs, 9270 - 9210 to act a sheet anchor
Sensex (29859) / Nifty (9285)
Exhibit 1: Nifty Weekly chart
The truncated week started the proceedings on Tuesday with
a range bound movement. The index bounced back higher
from the support of 9270 and traded in a narrow range for
the next couple of sessions. Post closing near the day's high
on Thursday, the index opened on a positive note on the last
trading session of the week. Nifty registered yet another
record high at the opening; but, it was merely a formality as
we witnessed a good broad-based selling pressure
throughout the remaining part of the day. The market
breadth was largely in favor of declines on Friday and the
index ended the week tad above the support of
9270,
marking a minor loss of 0.20 percent 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 28802 / 8924 and 27273 /
Exhibit 2: Nifty Daily chart
8375 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at 29739 / 9240 and 28838 /
8922levels, respectively.
Future outlook
Our market has given a splendid rally of more than 18
percent from its December lows without any major
correction. In this up move, ‘5 EMA’ on weekly chart acted
as a sheet anchor for the index. In the week gone by, the
Nifty resisted around the penultimate week’s high of 9367
and corrected on the back of some profit taking in the
broader market. A corrective move post the remarkable rally
is a healthy sign for sustainability in the longer run and
Source: Company, Angel Research
hence, we do not consider this as a worrisome factor.
However, for directional traders, there would be no sign of
At current juncture, the Nifty is trading around its strong
worry as the overall downside seems limited. Traders with a
support of a ‘Horizontal Trend Line’, which coincides with
directional view should look to create fresh longs in the
the ‘89 EMA’ (placed around 9270) on hourly chart. The
vicinity of this strong support zone i.e. 9270 - 9210. We
bias within this recent consolidation phase remains positive
continue to remain bullish on the market and expect the
as long as Nifty manages to hold this key support. Only a
index to gradually move towards 9400 first and then to
move below this point would result into some extended profit
achieve the next milestone of 9600.
booking towards the next support of 9210, which is the ‘200
SMA’ level on hourly chart.
For Private Circulation Only
1
Technical Picks | May 06, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
29,574
29,716
29,946
30,089
30,319
NIFTY
9,204
9,244
9,311
9,352
9,418
NIFTY BANK
21,953
22,279
22,566
22,892
23,180
ACC
1,533
1,597
1,633
1,697
1,733
ADANIPORTS
316
330
338
353
361
AMBUJACEM
231
239
243
251
256
ASIANPAINT
1,076
1,111
1,136
1,171
1,196
AUROPHARMA
561
575
596
610
630
AXISBANK
487
496
509
518
531
BAJAJ-AUTO
2,829
2,858
2,903
2,932
2,977
BANKBARODA
173
180
191
199
210
BPCL
699
712
733
746
766
BHARTIARTL
335
340
348
353
361
INFRATEL
341
354
362
375
383
BOSCHLTD
22,258
22,856
23,303
23,901
24,348
CIPLA
536
543
551
558
566
COALINDIA
268
273
279
284
290
DRREDDY
2,539
2,571
2,598
2,630
2,657
EICHERMOT
24,562
25,198
25,973
26,609
27,384
GAIL
402
410
422
430
442
GRASIM
1,112
1,152
1,185
1,225
1,258
HCLTECH
792
811
827
845
861
HDFCBANK
1,505
1,518
1,536
1,550
1,568
HDFC
1,506
1,527
1,559
1,580
1,612
HEROMOTOCO
3,257
3,317
3,365
3,425
3,473
HINDALCO
171
178
191
199
212
HINDUNILVR
908
931
946
968
983
IBULHSGFIN
964
1,035
1,082
1,153
1,201
ICICIBANK
260
279
291
310
321
IOC
417
425
438
446
458
INDUSINDBK
1,371
1,390
1,422
1,441
1,474
INFY
904
918
929
942
953
ITC
272
274
278
281
285
KOTAKBANK
888
898
910
920
932
LT
1,668
1,696
1,732
1,760
1,795
LUPIN
1,181
1,217
1,285
1,321
1,389
M&M
1,280
1,301
1,327
1,348
1,375
MARUTI
6,534
6,594
6,662
6,722
6,790
NTPC
155
158
162
164
168
ONGC
174
179
187
192
199
POWERGRID
200
204
209
214
218
RELIANCE
1,275
1,302
1,352
1,379
1,429
SBIN
276
286
296
305
315
SUNPHARMA
612
621
633
642
653
TCS
2,232
2,276
2,313
2,358
2,395
TATAMTRDVR
244
251
265
273
287
TATAMOTORS
392
406
432
445
471
TATAPOWER
80
82
83
85
86
TATASTEEL
413
423
439
449
465
TECHM
402
407
416
422
431
ULTRACEMCO
4,076
4,203
4,279
4,406
4,482
WIPRO
490
495
498
503
506
YESBANK
1,574
1,591
1,622
1,639
1,669
ZEEL
482
494
516
528
550
Technical Research Team
For Private Circulation Only
2
Derivatives Review | May 06, 2017
No shorts traced despite some profit booking
Nifty spot closed at 9285.30 this week, against a close of 9304.05 last week. The Put-Call Ratio has increased from 1.10 to 1.11
levels and the annualized Cost of Carry is positive at 6.17%. The Open Interest of Nifty Futures decreased by 0.18%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Nifty current month future closed with a premium of 31.40
Scrip
Price
Futures
Chg (%)
Chg (%)
points against a premium of 29.65 points to its spot. Next
VGUARD
1668000
278.23
205.40
7.06
month future is trading with a premium of 32.25 points.
RAYMOND
908000
243.94
760.50
1.53
PCR-OI has increased from 1.10 to 1.11 levels. In call option,
GODFRYPHLP
266500
221.08
1202.70
0.06
9400 strike added huge positions, followed by OI addition in
9300, 9500 and 9600 strikes. While in put option, decent
CANFINHOME
294250
173.72
2848.20
8.06
open interest addition was visible in 9300 and 9200 strikes.
BALRAMCHIN
5407500
172.97
159.20
(2.57)
Highest OI in May series has shifted from 9500 to 9400 call
MCX
890500
143.31
1127.00
(7.97)
option and from 9000 to 9300 in put options.
MRPL
2286000
134.10
127.50
(5.27)
Stock that added longs last week are VGUARD,
BAJAJFINSV
264875
126.39
4441.30
(3.61)
CANFINHOME, GSFC, ESCORTS and SYNDIBANK. While,
fresh shorts were visible in MCX, MRPL, TORNTPHARM, VEDL
and TATAMOTORS. Liquid counters with higher CoC are
Weekly OI losers
SOUTHBANK, CUMMINSIND, OIL, CHOLAFIN and
IBREALEST. Stocks with negative CoC are CEATLTD,
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
INFIBEAM, CANBK, BANKINDIA and TVSMOTOR L.
ADANIPORTS
9715000
(29.40)
345.10
4.94
Last week, the Nifty traded in a narrow range and concluded
ADANIENT
29512000
(22.73)
113.80
3.69
the week with minor loss on back of some profit booking at
higher levels. FIIs too booked profit in their longs in index
JSWENERGY
55904500
(19.63)
64.65
(4.22)
future and also initiate some short positions (though quantum
DISHTV
21567000
(14.06)
96.60
1.31
is low). As a result, their ‘Long/Short Ratio’ in index future has
DALMIABHA
1084200
(12.71)
2269.40
3.92
decreased from 84% to 78.80% as compare to penultimate
week. At current juncture, FIIs’ total position in index future is
PAGEIND
24100
(11.23)
14295.60
(1.52)
lowest since January
2017 expiry. Thus, any significant
CANBK
13874916
(11.14)
386.10
9.58
formation from FIIs’ desk will dictate the further move in the
IGL
1971200
(10.93)
1034.30
(2.86)
index. As of now, traders are advised to trade with positive
bias and avoid pre-empting any ‘Top’ formation.
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]
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