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For Private Circulation Only
Technical and Derivatives Review
| February 12, 2021
Market consolidates after a spectacular budget week
Sensex (51544) / Nifty (15163)
Source: Trading View
Future outlook
The previous week was fabulous for our market after an excellent Union Budget, like never before as promised by the Finance
Minister. Before anyone could realize, markets were considerably off pre-budget lows. This Monday, trading started with the similar
kind of optimism to clock fresh record highs. However there was no real momentum in the move. In fact, the index kept oscillating
within a slender range throughout the remaining part of the week. Despite some intraday volatility, the index managed to maintain
its positive posture and eventually ended the week by adding another 1.60% to the previous weekly close.
As far as this week’s price action is concerned, it can be construed as a breather after the previous week’s marathon rally. Although,
the bears tried to take the charge, all attempts turned unsuccessful. So despite having some fatigue around highs, market was not
willing to surrender at all and hence, slipped into a consolidation mode. Now, taking a glance at all time frame charts, we are unable
to see any key observation. Hence, 15300 15000 to be seen as crucial range and a breakout on either side should ideally dictate
the direction. But in case of an upside breakout, we would avoid aggressive participation; because as of now we do not see Nifty
going beyond 15450 15600 in the same leg of the rally. So we would continue to advise booking profits if Nifty enters this
mentioned zone. On the flipside, the action below 15000 would be an interesting one to participate in. In this scenario, a healthy
profit booking towards 14600 – 14400 cannot be ruled out.
Ideally, next couple of sessions would be quite crucial and probably we should be able to get an idea where market is heading in the
near term. This week, there was only stock specific activity seen in the market; but honestly nothing was too convincing enough. So
the pragmatic strategy would be to wait for some sort of trend deciding action and then one should be looking to place aggressive
bets.
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For Private Circulation Only
Technical and Derivatives Review
| February 12, 2021
15000-15100 to act as a demand zone
Nifty spot closed at 15163.30 this week, against a close of 14924.25 last week. The Put-Call Ratio has decreased from 1.41 to 1.38.
The annualized Cost of Carry is negative at 0.34%. The Open Interest of Nifty Futures has increased by 2.75%.
Derivatives View
Nifty current month future closed with a discount of 1.85 points against a premium of 22.50 points to its spot. Next month future is
trading at a premium of 37.20 points.
In options segment, we witnessed some open interest addition in 15100-15500 call options; followed by unwinding in 14800-15000
strikes. On the flipside, 15000-15200 put options witnessed good amount of open interest addition. Maximum open interest for the
monthly series is placed at 15500 call and 14500 put options.
Post previous week’s strong up move; we witnessed follow-up buying to high fresh record high of 15257.10 on Tuesday. However,
index remained range bound for next three sessions to eventually conclude the week with the gains of 1.60%. Unlike previous week,
we did see decent open interest addition in both the indices; however, the quantum remained insignificant. In options front, we
have been witnessing decent writing in puts and hence 15000-15100 may act as a good support zone. On the higher side, immediate
hurdle is placed around 15300 and any upmove beyond this may open doors for 15500 mark.
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
BALKRISIND 2984800 100.70 1655.20 (8.20)
TORNTPHARM 1283000 54.11 2582.80 (6.10)
ITC 165148800 49.74 213.40 (8.04)
BANKBARODA 95799600 35.83 78.05 (5.22)
RBLBANK 26746700 28.76 242.00 (3.03)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
VOLTAS 4171000 74.08 1083.30 8.08
POWERGRID 16448000 53.89 212.70 3.20
TATACHEM 8598000 28.41 562.60 6.92
HINDALCO 30487000 27.31 291.40 10.76
BERGEPAINT 3548600 24.60 770.25 5.40
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For Private Circulation Only
Technical and Derivatives Review
| February 12, 2021
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com
For Technical Queries E-mail: [email protected]
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