Technical Picks | April 8, 2017
Hint of profit booking but not a worrisome factor
Sensex (29707) / Nifty (9198)
The Financial Year 2017-18 kick-started on a cheerful note
Exhibit 1: Nifty Weekly chart
as the benchmark index opened with a decent upside gap
on Monday. After a small correction in initial trades, the
Nifty ended the session around the highest point of the day.
The positive momentum continued on Wednesday too; but,
the up move was short lived as we witnessed some selling
pressure right from opening trades. During the remaining
part of the week, we witnessed some corrective moves and
as a result, the Nifty shrugged off its intra-week gains to
conclude marginally in the green.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Source: Company, Angel Research
Sensex/Nifty are placed at
28343
/
8767 and
27047 / 8296 levels, respectively.
Exhibit 2: Nifty Daily chart
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at
29448
/
9117 and
28410 / 8774 levels, respectively.
Future outlook
Although, the Nifty has hit a new all time high in the
truncated week gone by, overall it was clearly a week of
consolidation for our market. In fact, we witnessed a strong
bout of profit booking during the penultimate hour of the
week to close tad below the 9200 mark.
Now, if we look at the weekly chart, we can clearly see a
formation of ‘Shooting Star’ pattern precisely at the 127%
Source: Company, Angel Research
‘Reciprocal Retracement’ level (9260) of the entire down
move from 8968.70 to 7893.80. An occurrence of such
So rather than getting carried away by such developments,
pattern around important ratios certainly does not augur
we would like to continue with our optimistic stance on the
well for our markets. In general scenario, we would have
market with a directional view and would advise traders to
expected a sharp correction after the confirmation of this
keep creating longs in the vicinity of mentioned support zone
pattern. But, looking at the broader degree chart structure
i.e. 9114 - 9019. Our target in the upward direction
accompanied by the rising slope of ‘RSI-Smoothened’ on
remains at 9400 - 9600 (price extension of previous up
weekly chart (after surpassing the 70 mark), we would term
move from recent low of 7893.80) over the next few weeks.
it as a consolidation phase or a possibility of minor
It’s very difficult to give a time-wise prediction; but one needs
corrective moves in the near term. A strong support zone for
to stay on the long side as long as directional view is
the forthcoming week is seen around 9114 - 9019 levels.
concerned. It’s advisable to use intermediate dips to create
fresh long positions in the market. The base for the Nifty
It is to be noted that every corrective move comes on the
has shifted higher from 8850 to 9019, which is another
back of some negative development either on the global or
domestic front. In a rising market, we keep saying ‘buy on
promising sign for our market.
dips’ and the moment dip comes with some negative news
flow, we tend to take a back step.
For Private Circulation Only
1
Technical Picks | April 8, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
29,455
29,581
29,794
29,920
30,133
NIFTY
9,134
9,166
9,220
9,252
9,306
NIFTY BANK
21,207
21,319
21,509
21,621
21,811
ACC
1,430
1,449
1,472
1,491
1,514
ADANIPORTS
328
338
348
358
369
AMBUJACEM
230
236
241
248
253
ASIANPAINT
1,053
1,068
1,083
1,098
1,113
AUROPHARMA
635
647
667
678
698
AXISBANK
478
491
504
517
531
BAJAJ-AUTO
2,719
2,775
2,810
2,866
2,902
BANKBARODA
162
165
171
175
181
BPCL
614
645
662
693
710
BHARTIARTL
330
337
344
351
358
INFRATEL
308
328
338
358
368
BOSCHLTD
22,242
22,535
22,842
23,135
23,442
CIPLA
574
582
593
601
612
COALINDIA
270
277
287
294
304
DRREDDY
2,543
2,602
2,686
2,745
2,829
EICHERMOT
25,045
25,426
25,708
26,089
26,371
GAIL
370
378
385
393
400
GRASIM
1,027
1,042
1,060
1,075
1,093
HCLTECH
826
838
858
870
890
HDFCBANK
1,413
1,426
1,438
1,451
1,463
HDFC
1,425
1,455
1,496
1,526
1,567
HEROMOTOCO
3,128
3,172
3,218
3,262
3,309
HINDALCO
187
190
195
198
203
HINDUNILVR
889
907
922
940
955
IBULHSGFIN
921
938
970
988
1,019
ICICIBANK
269
273
280
285
292
IOC
371
384
392
405
413
INDUSINDBK
1,376
1,394
1,411
1,429
1,446
INFY
944
963
998
1,016
1,051
ITC
263
268
276
281
288
KOTAKBANK
853
863
880
890
908
LT
1,517
1,601
1,661
1,745
1,804
LUPIN
1,373
1,392
1,424
1,443
1,475
M&M
1,247
1,261
1,283
1,297
1,319
MARUTI
5,887
6,073
6,216
6,402
6,545
NTPC
162
165
167
170
172
ONGC
183
185
187
188
190
POWERGRID
190
192
196
199
202
RELIANCE
1,286
1,346
1,398
1,458
1,509
SBIN
281
285
292
296
303
SUNPHARMA
640
653
675
688
709
TCS
2,376
2,402
2,419
2,445
2,462
TATAMTRDVR
276
280
284
288
292
TATAMOTORS
458
463
472
477
486
TATAPOWER
84
86
88
90
93
TATASTEEL
471
482
494
505
518
TECHM
430
437
448
454
466
ULTRACEMCO
3,940
4,010
4,082
4,152
4,223
WIPRO
496
504
510
518
525
YESBANK
1,515
1,536
1,556
1,577
1,597
ZEEL
515
531
543
559
571
Technical Research Team
For Private Circulation Only
2
Derivatives Review | April 8, 2017
Nifty hovering around support, trade with positive bias
Nifty spot closed at 9198.30 this week, against a close of 9173.75 last week. The Put-Call Ratio has increased from 0.97 to 1.04
levels and the annualized Cost of Carry is positive at 2.61%. The Open Interest of Nifty Futures decreased by 10.36%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty April month future closed with a premium of
13.15
Futures
Chg (%)
Chg (%)
points against a premium of 24.00 points to its spot. May
PVR
232800
380.99
1538.50
7.03
month future is trading with a premium of 37.45 points.
MFSL
3913000
379.53
637.35
9.78
PCR-OI has increased from 0.97 to 1.04 levels. In call option,
UJJIVAN
8205600
305.82
387.20
(8.65)
decent open interest addition was seen in 9300 - 9500
SHREECEM
23500
291.67
17815.25
3.99
strikes. While, in put option, 9000 - 9200 strikes were active
and added fresh positions. Highest open interest in current
MUTHOOTFIN
1246500
250.63
378.10
1.86
series is placed at 9500 call and 9000 put option.
DALMIABHA
238200
162.91
2171.30
9.81
Stock that added longs last week are DALMIABHA, MFSL, SAIL,
EQUITAS
7664000
150.26
165.20
(3.22)
PVR and TVSMOTOR. While, fresh shorts were visible in
PEL
245700
109.46
1927.10
0.59
UJJIVAN, DISHTV, MCDOWELL-N, JETAIRWAYS and
EQUITAS. Liquid counters with higher CoC are NHPC, MFSL,
JINDALSTEL, ICIL and TORNTPHARM. Stocks with negative
Weekly OI losers
CoC are VEDL, OFSS, TVSMOTOR, PNB and UJJIVAN.
OI
OI
Price
Scrip
Price
Last week, the Nifty remained sideways and we didn’t witness
Futures
Chg (%)
Chg (%)
any meaningful activity on open interest front. Friday’s fall was
RELIANCE
14535500
(18.86)
1411.55
6.44
also not supported by any short formation, which is positive
INFIBEAM
1440800
(14.71)
976.10
3.26
sign for the index. Except some long unwinding in Index
INFRATEL
6851200
(14.46)
347.80
6.46
futures, FIIs’ activity remained subdued in F&O segment.
However, they were marginal buyers in cash market segment.
NTPC
20604000
(12.61)
168.35
1.23
Few heavyweight counters like BHEL, LT, RELIANCE and
DABUR
10417500
(12.42)
282.60
1.75
MARUTI had shown tremendous outperformance in last week;
BHARATFORG
4087200
(10.45)
1069.75
2.10
but, these were short covering moves. At current juncture, the
M&MFIN
12277500
(10.20)
334.80
6.10
Nifty is hovering around the strong support around
9150 - 9200 levels and traders may go long in 9300 call
BEL
29250000
(10.08)
167.70
6.85
option.
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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