1
For Private Circulation Only
Technical and Derivatives Review
| September 11, 2020
Some respite after last week’s hiccup
Sensex (38855) / Nifty (11464)
Source: Trading View
Future outlook
Last week, finally the brakes were applied on the recent euphoria on the back of geopolitical concerns with respect to the India-
China clash at the border and to make it worse, US markets started correcting sharply after a strong gravity defying move in the last
couple of months. All these factors triggered profit booking in our market and left us with some uncertainty at the end of the
previous week. Fortunately, no escalation was seen over the last weekend and during the week also. Hence, some respite was seen
in the latter half to reclaim the 11450 mark.
In the week gone by, no further damage was done after a previous week’s hiccup. However, the overall intra-week range was
extremely small and barring one or two days, there was no major activity seen in indices. In our sense, one should still continue with
a slightly cautious stance because the uncertainty is still looming over and till the time, we do not get clarity with respect to all these
developments, better to stay light with a stock specific approach. As far as levels are concerned, 11550-11650 are likely to act as
immediate hurdles; whereas on the lower side, 11350-11200 would be seen as a key support zone.
This week the majority of the gains were contributed by the stellar move in RELIANCE towards the fag end and IT stocks too chip in.
At this juncture, the banking index is clearly underperforming and is placed around the crucial junction. We are observing a cluster of
support around 22200-22000 and till the time it is defended, we can expect some recovery in the market. However, if it fails to hold
this, the Nifty can easily slide below the key support of 11200. So, one should keep a close eye on all these possibilities and should
position accordingly.
2
For Private Circulation Only
Technical and Derivatives Review
| September 11, 2020
BankNifty looks short heavy; buy on declines
Nifty spot closed at 11464.45 this week, against a close of 11333.85 last week. The Put-Call Ratio has increased from 1.22 to 1.49.
The annualized Cost of Carry is positive at 1.25%. The Open Interest of Nifty Futures has increased by 1.25%.
Derivatives View
Nifty current month future closed with a premium of 2.65 points against a premium of 17.90 points to its spot. Next month future is
trading at a premium of 13.50 points.
As far as Nifty options activities are concerned, build-up was seen in 11300, 11400 and 11600 call options. In case of put options,
build-up was scattered between 10500-11400 (except 10900 and 11000 wherein we saw some unwinding). Maximum open interest
is now placed at 11500 call and 11000 put option.
We started-off the week on a slightly positive note and then index consolidate for the first two sessions in the range of 200 points.
On Wednesday, selling aggravated to test 11200 mark; however, decent buying interest was seen at the lower levels to recover all
the losses. Nifty extended its upmove for next two sessions to rally almost towards 11500 mark. In index futures segment, we saw
fresh longs in Nifty; whereas, majority of shorts were added in the banking index. For the entire September month, BankNifty has
been an underperformer and has also added decent shorts; but considering the overall positions we believe this index is short
heavy. Hence, may see decent short covering move in the coming week. At present, 22200-22000 is a strong support zone for
BankNifty; any dips shall be utilized to buy ATM weekly call options.
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Pr
ice
Chg(%)
CONCOR 7160103 37.82 382.60 (2.27)
CADILAHC
10681000
29.09
371.30
(1.94)
COALINDIA
38265400
27.69
125.60
(5.31)
IDFCFIRSTB
171912000
27.67
31.00
(1.90)
BHARATFORG
6147000
22.36
465.40
(5.21)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
COFORGE 582000 78.60 2098.55 8.92
ADANIENT
19348000
28.47
297.20
3.79
VEDL
131322200
24.54
132.30
4.54
MUTHOOTFIN
4174500
23.74
1132.80
0.43
BPCL
23781600
19.71
428.80
6.13
3
For Private Circulation Only
Technical and Derivatives Review
| September 11, 2020
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration
number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for
accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed
public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits
and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com
Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com
