1
For Private Cir
culation Only
Technical and Derivatives Review
| January 08, 2021
2021 starts with a bang, key support at 14000
Sensex (48783) / Nifty (14347)
Source: Trading View
Future outlook
We had a head-start for the inaugural week of the calendar year 2021 on Monday. Nifty opened higher convincingly above the
14000 mark and kept reaching new milestones as the week progressed. During the mid-week, markets witnessed small intraday
hiccups on the back of some uncertainty with respect to the political developments in United States. However, things settled down
there in the latter half of the week, which rejuvenated the US markets. Hence, the smart rally in Nifty on Friday was mainly triggered
by the overall global optimism.
This has been one of the biggest as well as longest relentless rallies in the history of Indian markets. Those who missed the bus, are
completely furious and at the same time, the set of contrarian traders also must have gone for a toss. Honestly, as a momentum
trader, such rallies becomes extremely difficult to trade; because whenever the short term tide reverses, it will catch lot of
complacent traders on the wrong foot. Nobody knows when it’s going to happen and till the time we do not see any major reversal
signs, better to be with the flow by following strict money as well as risk management.
As far as levels are concerned, we are in an uncharted territory and hence, it’s better to go one step at a time. For the coming week,
the immediate levels can be seen around 14400 - 14550; whereas on the lower side, the cluster of supports can be seen at 14300 -
14150 - 14000. The first sign of real weakness would come only below 14000 - 13900. At present, the ideal strategy for traders
would be to focus on individual stocks by following a strict exit strategy. We would also advocate booking partial profits in this rally
and avoiding aggressive leveraged positions.
2
For Private Cir
culation Only
Technical and Derivatives Review
| January 08, 2021
Long formation in indices adds fuel to the rally
Nifty spot closed at 14347.25 this week, against a close of 14018.50 last week. The Put-Call Ratio has increased from 1.37 to 1.71.
The annualized Cost of Carry is positive at 3.01%. The Open Interest of Nifty Futures has increased by 10.22%.
Derivatives View
Nifty current month future closed with a premium of 23.65 points against a premium of 35.35 points to its spot. Next month future
is trading at a premium of 54.35 points.
As far as Nifty options activities are concerned, we saw some build-up in 14200-14500 call options and 14200-14000 put options.
Maximum open interest concentration in the weekly series is at 14500 call and 14200 put.
Nifty continued to clock new records and ended the week at its highest close ever around 14350. Both Nifty as well as Bank Nifty
witnessed addition of fresh long positions during the week. FII’s continue with their bullish positions in the index futures and added
more long positions during the week. Their ‘Long Short Ratio’ now stands over 81 percent. In weekly options segment, we saw
unwinding of positions by call writers in 14200-14300 strikes whereas writing was seen in 14200 put option. The above data
continues to depict a bullish picture and hence, traders are advised to continue to trade with a positive bias. The immediate support
on any declines in the coming week will be seen around 14200 whereas we could see the index approaching 14400-14500 zone.
Weekly change in OI
Short Formation
Scrip
Futures
OI
Chg (%)
Price
Price
Chg(%)
ITC 112105600 21.72 202.60 (5.77)
RELIANCE
37891000
16.91
1941.85
(2.65)
- - - - -
- - - - -
- - - - -
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
TORNTPOWER 5163000 66.28 337.50 5.03
MINDTREE
1741600
41.18
1748.35
4.98
CUMMINSIND
2474400
35.57
636.85
8.89
AMARAJABAT
1804000
31.30
994.70
7.45
WIPRO
33587200
26.69
428.95
10.30
3
For Private Cir
culation Only
Technical and Derivatives Review
| January 08, 2021
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com
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For Derivative Queries E-mail: [email protected]
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.cha[email protected]g.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jai[email protected].com
Rajesh Bhosale Technical Analyst rajesh.bhosl[email protected]ng.com
Sneha Seth Derivatives Analyst [email protected]gelbroking.com