May 12, 2017
Technical Picks | May 12, 2017
9600 in sight, base now shifted to 9270
Sensex (30188) / Nifty (9401)
Exhibit 1: Nifty Weekly chart
Trading for the week began on a positive note on the back
of cheerful global bourses. The Nifty traded in a narrow
range of merely 40 points for first couple of trading sessions.
On Wednesday, we witnessed a decent gap up opening
beyond previous two day’s high, which was then followed by
a good positive traction to confirm highest ever close well
above the 9400 mark. However, index failed to carry this
momentum over the remaining part of the week as we saw
some profit taking after hitting a new high of 9450.65.
Eventually, the Nifty index ended the week with gains of 1.24
percent over its previous week's close.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Source: Company, Angel Research
Sensex/Nifty are placed at 28962 / 89724 and 27332 /
8398 levels, respectively.
Exhibit 2: Nifty Daily chart
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at 29898 / 9294 and 28944 /
8967levels, respectively.
Future outlook
Our market seems to be enjoying its strong bull run started
in the month of December after hitting a low 7893.80.
Clearly, there has been no stopping since then as all minor
corrections are getting bought into. During the week, the
Nifty registered yet another record high of 9450.65 and
eventually, despite some profit booking in the latter part, has
managed to defend the 9400 mark on a closing basis.
Now, if we try to study the market movement (of last four
months) in hindsight, we can clearly jump to a conclusion
Source: Company, Angel Research
that the index has been following a particular pattern i.e. a
Thus, we expect the index to continue this northward rally
sharp up move followed by some consolidation in small
towards 9600, where we would advise traders to start taking
range and then once again a breakout from the range to
some money off the table. For the forthcoming week, the
resume the uptrend. The similar thing we witnessed in the
support would now be seen at 9372 - 9340. Any dip in the
week gone by and as a result, we can see a formation of
initial part of the week towards the mentioned support zone
‘Bullish Flag’ pattern on daily chart. The potential target of
should be construed as a good buying opportunity.
this pattern comes to yet another milestone of 9600. This
level coincides with the 161% ‘Price Extension’ of the entire
rally (6825.80 to 8968.70) from the recent bottom of
7893.80.
For Private Circulation Only
1
Technical Picks | May 12, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
25,676
27,963
29,165
31,452
32,654
NIFTY
9,230
9,316
9,383
9,468
9,536
NIFTY BANK
22,343
22,507
22,743
22,907
23,142
ACC
1,597
1,638
1,698
1,739
1,798
ADANIPORTS
325
342
352
368
379
AMBUJACEM
246
252
261
268
277
ASIANPAINT
1,092
1,113
1,147
1,168
1,202
AUROPHARMA
574
599
613
638
652
AXISBANK
477
490
512
525
548
BAJAJ-AUTO
2,769
2,887
2,953
3,071
3,136
BANKBARODA
181
184
188
190
195
BPCL
701
717
726
743
752
BHARTIARTL
317
341
361
385
405
INFRATEL
346
360
371
385
396
BOSCHLTD
22,787
23,136
23,475
23,825
24,163
CIPLA
536
552
561
577
586
COALINDIA
270
273
277
280
284
DRREDDY
2,474
2,528
2,575
2,628
2,676
EICHERMOT
24,585
26,882
28,466
30,763
32,347
GAIL
388
398
411
421
434
GRASIM
1,108
1,129
1,166
1,186
1,223
HCLTECH
811
829
844
862
877
HDFCBANK
1,515
1,533
1,547
1,565
1,578
HDFC
1,486
1,518
1,550
1,581
1,613
HEROMOTOCO
3,165
3,353
3,453
3,642
3,742
HINDALCO
175
183
189
197
204
HINDUNILVR
922
951
975
1,004
1,028
IBULHSGFIN
981
1,018
1,076
1,113
1,171
ICICIBANK
284
291
299
305
314
IOC
418
426
436
444
453
INDUSINDBK
1,381
1,396
1,417
1,433
1,453
INFY
920
942
954
976
988
ITC
267
271
275
279
283
KOTAKBANK
877
916
939
978
1,001
LT
1,677
1,709
1,737
1,769
1,797
LUPIN
1,219
1,236
1,261
1,278
1,303
M&M
1,272
1,320
1,361
1,409
1,450
MARUTI
6,528
6,629
6,714
6,815
6,899
NTPC
155
157
160
162
165
ONGC
179
182
186
189
193
POWERGRID
202
204
208
210
214
RELIANCE
1,295
1,323
1,346
1,374
1,398
SBIN
288
293
298
303
307
SUNPHARMA
616
636
646
666
676
TCS
2,295
2,328
2,349
2,382
2,403
TATAMTRDVR
254
260
263
268
272
TATAMOTORS
410
421
428
438
445
TATAPOWER
80
81
82
83
85
TATASTEEL
419
428
437
445
454
TECHM
400
421
433
454
466
ULTRACEMCO
4,262
4,333
4,397
4,468
4,531
WIPRO
490
499
504
513
518
YESBANK
1,364
1,424
1,529
1,588
1,694
ZEEL
468
497
523
552
577
Technical Research Team
For Private Circulation Only
2
Derivatives Review | May 12, 2017
Options data hints market to remain upbeat, buy on dips
Nifty spot closed at 9400.90 this week, against a close of 9285.30 last week. The Put-Call Ratio has increased from 1.11 to 1.24
levels and the annualized Cost of Carry is positive at 4.15%. The Open Interest of Nifty Futures increased by 10.89%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 13.90
Futures
Chg (%)
Chg (%)
points against a premium of 31.40 points to its spot. Next
NESTLEIND
68400
140.85
6829.10
1.36
month future is trading with a premium of 14.45 points.
PEL
681900
87.08
2613.40
4.07
PCR-OI has increased from
1.11 to
1.24 levels mainly
BERGEPAINT
1113200
80.07
257.10
(1.25)
because of good amount of open interest addition in puts
along with unwinding in call options. In call option, 9500
GLENMARK
5488700
72.67
762.40
(10.12)
strike added huge positions, followed by unwinding in 9300
CHOLAFIN
216000
65.52
1072.40
(2.36)
and 9400 strikes. While in put option, good amount of open
MRPL
3735000
63.39
129.70
1.73
interest addition was visible in 9300 and 9400 strikes. Highest
OI in May series is placed 9500 call and 9300 put options.
FORTIS
12411900
54.47
209.25
(1.32)
Stock that added longs last week are CGPOWER, NIITTECH,
GODFRYPHLP
411500
54.41
1261.30
4.87
ESCORTS, GODREJCP and UBL. While, fresh shorts were
visible in GLENMARK, YESBANK, APOLLOTYRE, ORIENTBANK
and CANFINHOME. Liquid counters with higher CoC are
Weekly OI losers
GMRINFRA, JPASSOCIAT, PAGEIND, SUZLON and
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
ADANIPOWER. Stocks with negative CoC are CEATLTD,
INFIBEAM, ORIENTBANK, CASTROLIND and JUSTDIAL.
IRB
17635000
(22.25)
257.35
(0.04)
Last week, the Nifty rallied from its strong support zone of
UJJIVAN
6133200
(17.62)
350.20
1.29
9250-9300 and FIIs too actively participated in this up move.
SYNDIBANK
17802000
(14.81)
90.25
2.79
They bought equities to the tune of Rs. 2833 crores (on net
KTKBANK
29615325
(14.71)
165.80
(1.28)
basis) last week. In addition, they also formed long positions
in stock futures and index call options along with writing in
AMBUJACEM
16160000
(12.98)
258.45
4.28
index puts, which is a positive sign for our market. Despite
DALMIABHA
947400
(12.62)
2534.35
11.67
they formed short positions in index futures last week, the long
APOLLOHOSP
1812000
(11.83)
1310.95
3.57
short ratio stands at 67%. Thus, looking at the above data, we
continue to remain upbeat on market and thus, would suggest
TATACOMM
7196700
(11.14)
672.60
4.80
traders buying 9400 call option for next week.
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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