July 08, 2017
Technical Picks | July 08, 2017
Nifty reclaimed 9700, one more opportunity to exit longs
Sensex (30361) / Nifty (9666)
Exhibit 1: Nifty Weekly chart
The Nifty index started the week with a gap up opening and
rallied higher. Post a consolidation phase in next couple of
trading sessions, the index resumed its positive momentum
on Thursday and tested the 9700 mark. However, the index
was unable to surpass the mentioned resistance and ended
the week below this hurdle by adding 1.52 percent over its
previous week's close. Amongst sectoral indices, the Nifty
Energy index and the Nifty Metals index outperformed the
broader indices and posted weekly gains of 3.93 percent
and 3.22 percent respectively.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed 30158 / 9330 and 27948 /
8594 levels, respectively.
Source: Company, Angel Research
The ’20-day EMA’ and the ‘20-week EMA’ for the
Exhibit 2: Nifty Daily chart
Sensex/Nifty are placed at 31102 / 9597 and 30129 /
9312 levels, respectively.
Future outlook
In the week gone by, our markets gave a smart recovery
from the recent low of 9448.75; in fact, due to Thursday’s
move, the Nifty made yet another successful attempt to test
the 9700 mark. As a result, the Nifty managed to surpass
the strong resistance of 9630 - 9650 with an ease. This
move was slightly unexpected for us; but despite this
development, two consecutive narrow range candles after
kissing 9700 does not give any comfort to change our
cautious stance on the market.
We would like to highlight few notable observations that are
holding us back. 1) We can see a breakdown from the small
‘Upward Sloping Channel’ and prices are continuously
Source: Company, Angel Research
resisting at the lower trend line of the pattern. 2) We are
meticulously observing the placement of ‘Parabolic SAR’
Hence, we would continue to advise staying light in the
indicator which turned into a ‘Sell’ mode last week. The Nifty
market (at least index specific longs should be avoided) and
is now placed tad below the higher end of this indicator.
should focus on individual stocks in order to get better
And 3) the daily ‘RSI-Smoothened’ has bounced towards its
breakdown point, which we believe would act a strong
trading opportunities. On the flipside, 9640 - 9600 are seen
resistance. Considering all these evidences, we still believe
as immediate support levels; but, with a near term view,
that it would be a daunting task to overcome the hurdle of
these levels may get breached soon and index may slip
9700 - 9720 in the near term.
towards 9450 - 9340 levels.
For Private Circulation Only
1
Technical Picks | July 08, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
30,836
31,098
31,279
31,542
31,723
NIFTY
9,480
9,573
9,637
9,730
9,794
NIFTY BANK
22,982
23,216
23,378
23,611
23,774
ACC
1,540
1,575
1,601
1,636
1,662
ADANIPORTS
353
362
369
378
385
AMBUJACEM
240
247
252
259
265
ASIANPAINT
1,081
1,098
1,121
1,138
1,161
AUROPHARMA
659
678
689
708
719
AXISBANK
492
497
507
513
522
BAJAJ-AUTO
2,668
2,688
2,715
2,735
2,761
BANKBARODA
154
157
162
165
169
BPCL
628
646
658
676
688
BHARTIARTL
368
377
382
391
396
INFRATEL
357
380
398
422
440
BOSCHLTD
22,705
23,145
23,547
23,987
24,389
CIPLA
529
538
549
558
569
COALINDIA
239
245
249
255
259
DRREDDY
2,563
2,634
2,682
2,753
2,801
EICHERMOT
26,656
27,254
27,717
28,315
28,778
GAIL
348
353
361
367
375
HCLTECH
813
822
838
848
863
HDFCBANK
1,636
1,652
1,661
1,676
1,685
HDFC
1,575
1,602
1,628
1,655
1,681
HEROMOTOCO
3,586
3,634
3,719
3,767
3,852
HINDALCO
186
191
195
200
204
HINDUNILVR
1,066
1,082
1,097
1,113
1,128
IBULHSGFIN
1,007
1,036
1,069
1,098
1,131
ICICIBANK
285
287
291
294
298
IOC
369
376
384
391
399
INDUSINDBK
1,453
1,489
1,510
1,547
1,567
INFY
909
922
946
959
983
ITC
315
325
340
349
364
KOTAKBANK
930
947
957
975
985
LT
1,651
1,678
1,698
1,725
1,745
LUPIN
996
1,057
1,097
1,157
1,198
M&M
1,319
1,348
1,371
1,400
1,424
MARUTI
7,094
7,263
7,381
7,550
7,667
NTPC
153
156
158
161
163
ONGC
152
156
160
163
167
POWERGRID
205
207
210
212
215
RELIANCE
1,327
1,409
1,453
1,536
1,580
SBIN
268
274
278
285
289
SUNPHARMA
534
541
551
559
568
TCS
2,289
2,311
2,347
2,368
2,404
TATAMTRDVR
258
261
265
269
272
TATAMOTORS
419
428
435
444
450
TATAPOWER
79
80
82
83
85
TATASTEEL
536
544
551
560
566
TECHM
367
374
379
386
392
ULTRACEMCO
3,852
3,974
4,058
4,181
4,265
VEDANTA
244
251
257
264
270
WIPRO
248
253
257
262
266
YESBANK
1,425
1,466
1,492
1,533
1,559
ZEEL
477
492
501
516
524
Technical Research Team
For Private Circulation Only
2
Derivatives Review | July 08, 2017
Momentum to continue in individual stocks
Nifty spot closed at 9665.80 this week, against a close of 9520.90 last week. The Put-Call Ratio has increased from 1.13 to 1.29
levels and the annualized Cost of Carry is negative at 0.30%. The Open Interest of Nifty Futures increased by 7.23%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 1.70
Futures
Chg (%)
Chg (%)
points against a discount of 3.50 points to its spot. Next month
ICICIPRULI
1413100
324.61
485.75
3.15
future is trading with a premium of 34.85 points.
MANAPPURAM
13584000
266.94
102.10
3.50
PCR-OI has increased from 1.13 to 1.29 levels on week on
CHENNPETRO
445500
126.72
363.40
2.09
week basis. In call option, 9800 and 10000 strikes added
some fresh positions. While, in put options, 9300-9700 strikes
REPCOHOME
281400
107.22
811.30
(2.27)
remained quite active and also added good amount of
SREINFRA
3795000
96.63
114.05
(1.93)
positions. Wherein, 9500 and 98600 put options added
PAGEIND
43300
79.67
16982.40
1.36
significant positions. At current juncture, maximum open
interest concentration in July series is placed at 9700 call and
SRTRANSFIN
4593600
62.20
1095.55
8.99
9500 put option.
NATIONALUM
6456000
55.49
67.90
4.06
Stock that added longs last week are IDFCBANK, JUBLFOOD,
RAYMOND and ASHOKLEY. While, fresh shorts were visible in
TATACOMM, NIITTECH, KSCL and JUSTDIAL. Liquid counters
Weekly OI losers
with higher CoC are SUZLON, ADANIPOWER, RCOM, RCOM
OI
OI
Price
Scrip
Price
and GRANULES. Stocks with negative CoC are TECHM,
Futures
Chg (%)
Chg (%)
MINDTREE, CANBK, TATASTEEL and RBLBANK.
MINDTREE
2925600
(21.38)
528.90
0.42
Last week, the benchmark index rallied 1.58% with some
NMDC
27186000
(13.10)
116.35
6.94
rise in open interest, indicating long formation. However, if
HEXAWARE
2283000
(12.53)
237.90
(2.22)
we look at FIIs data, they unwounded some of their longs
in index futures along with fresh short formation. In
SAIL
56544000
(12.02)
61.70
5.11
addition, they bought good amount of stock futures during
GLENMARK
6099800
(11.25)
667.10
4.80
last week. At current juncture, we are hardly seeing any
buying interest by stronger hands in index, but looking at
BEL
26622000
(9.46)
170.55
5.12
their stock futures activity it seem momentum in individual
PETRONET
14160000
(8.85)
218.50
1.20
stocks may continue. Thus, traders are suggested to remain
light in index and prefer stock specific approach to fetch
APOLLOTYRE
13734000
(8.53)
259.15
7.09
higher returns.
Weekly change in OI
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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