For Private Circulation Only
Technical and Derivatives Review
| April 09, 2021
Key indices remain lethargic, thematic moves continue
Sensex (49591) / Nifty (14835)
Source: Trading View
Future outlook
Trading for the week started on a sluggish note on Monday morning as indicated by the SGX Nifty. However things worsened as the
day progressed to test sub-14500 levels. Fortunately, there was no further damage done as we witnessed a gradual recovery
throughout the remaining part of the week to reclaim the 14800 mark on a closing basis; but ended with a negligible loss as
compared to the previous weekly close.
Overall if we see, major indices have gone nowhere as it was a week of boredom and consolidation for them. There were one or two
odd days when we witnessed some action in index heavyweights; but didn’t last too long as breakout attempts on either sides were
turned unsuccessful. In the upward direction, we were seeing 14900 as a crucial hurdle on a closing basis and after nearly twelve
trading sessions, bulls attempted to break this barrier on an intraday basis; but failed to maintain at the close. So 14900 15000
continues to remain a sturdy wall and till the time we do not surpass it, major heavyweights are not going to give any sustainable up
move. Yes, at the same time, it’s not falling either; in fact the undertone remained bullish for the major part of the week. On the
lower side, 14700 followed by 14550 are to be seen as immediate supports.
The deciding factor in days to come has to be the financial space. Since last couple of weeks, the banking index has been hovering
around its strong support zone of 32200 32400 which is the breakout point on the budget day as well as the ’89-EMA’ on daily
chart. It has managed to hold this till now and if any recovery has to take place, there will not be a better place than this. But in our
sense, if any bottom (short or long term) is to be formed; it does not give so many opportunities for the bulls to get in as it has been
giving in last few days. It just happens in a flash and takes off before anyone could realize. This is clearly not the case at present and
hence, the more it challenges any particular support, the higher it creates possibility of breaking it. Hence, all eyes would be on this
development as it is likely to dictate the near term direction for the market. Throughout this week, lot of thematic moves kept
buzzing and hence, one can definitely keep tracking such potential candidates; but avoid being complacent at the same time.
For Private Circulation Only
Technical and Derivatives Review
| April 09, 2021
Nifty locked in a broad range, prefer stock specific trading
Nifty spot closed at 14834.85 this week, against a close of 14867.35 last week. The Put-Call Ratio has increased from 1.16 to 1.29.
The annualized Cost of Carry is positive at 6.71%. The Open Interest of Nifty Futures increased by 5.26%.
Derivatives View
Nifty current month future closed with a premium of 58.15 points against a premium of 86.00 points to its spot. Next month future
is trading at a premium of 112.75 points.
In options segment, we saw some build-up in 14900 and 15000 call options while 14500-14300 put options too added some open
interest. Maximum build-up in the weekly series is now placed in 15000 call and 14500 put options.
We witnessed some upmove in Nifty during the week wherein the index tried to surpass its hurdle of 14900-15000, However, the
index was unable to do so without the support of banking space and ended the week tad below 14850. During the week, Nifty
witnessed some long formation, while decent unwinding was seen in the Bank Nifty. FII’s have squared off some of their index
futures long positions and their ‘Long Short Ratio’ at the end of week stands at 57.5 percent. The options data hints resistance at
14900-15000 range while support is placed in the range of 14500-14400. While Nifty is consolidating, the banking space is
underperforming and stocks from other sectors such as Pharma, IT, Metals have seen good long formation. Thus, it is advisable to
trade with a sector/stock specific approach until we see a clear breakout from the range on either side.
Weekly change in OI
Short Formation
Chg (%)
AMARAJABAT 4365000 85.11 821.40 (5.34)
Long Formation
Chg (%)
LALPATHLAB 347250 79.92 3149.70 15.67
For Private Circulation Only
Technical and Derivatives Review
| April 09, 2021
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.cha[email protected]ng.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