Technical Picks | January 14, 2017
Undertone remains bullish, focus on individual stocks
Sensex (27238) / Nifty (8400)
The Nifty started Monday's session with marginal gains; but,
Exhibit 1: Nifty Weekly chart
up move was very short lived as the index closed with
marginal loss on the same day. This was followed by a
positive session and then a strong gap up opening on
Wednesday to break the stiff resistance of 8300. In fact, the
bullish momentum accelerated as the day progressed, which
continued on the next day as well. The index tested 8400 in
the process; however, on the last day of the week, we saw
decent profit booking post the gap up opening to conclude
the week precisely at 8400. Eventually, the Nifty managed to
post decent gains of 1.91% over its previous week’s close.
Key Moving Averages:
Source: Company, Angel Research
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at
26934
/
8300 and
Exhibit 2: Nifty Daily chart
26496 / 8104 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at
26672
/
8223 and
26984 / 8315 levels, respectively.
Future outlook
Last week, we saw Nifty struggling around the 8300 mark,
in fact, the same thing was witnessed in the early part of the
week gone by. However, similar to 8200, the index chose to
surpass this hurdle with a strong gap up opening, which was
a sign of strength. As a result, we saw strong follow up
buying to test the expected target of 8450 on Friday.
Source: Company, Angel Research
Now, due to last week’s up move, the Nifty has managed to
However, there would just be a pause in the momentum as
close decisively above the ’20 EMA’ as well as ‘Parabolic
the undertone still remains bullish and we expect buying
SAR’, which has confirmed a bullish signal on weekly chart.
emerging at lower levels. On the other hand, in case of a
In addition, the ‘RSI - smoothened’ oscillator has given a
dip, 8320 - 8250 would be seen as strong support levels for
positive crossover with its average in the same time frame
the index. Since, the index has already given a decent run of
chart. On Friday, we saw some profit booking after reaching
late, we would now advise traders to focus on individual
the downside gap area (8460 - 8510) formed on November
stocks which may fetch higher returns as compared to the
11, 2016. Going ahead, considering recent sharp rally, we
may see Nifty consolidating around 8460 and then at 8598,
index.
which can termed as immediate hurdles.
For Private Circulation Only
1
Technical Picks | January 14, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
26,374
26,806
27,133
27,565
27,892
NIFTY
8,130
8,265
8,363
8,498
8,596
NIFTY BANK
18,001
18,457
18,712
19,167
19,422
ACC
1,288
1,309
1,335
1,356
1,382
ADANIPORTS
275
285
292
302
309
AMBUJACEM
203
208
213
218
223
ASIANPAINT
892
913
927
947
961
AUROPHARMA
658
681
702
725
746
AXISBANK
407
440
457
491
508
BAJAJ-AUTO
2,655
2,682
2,718
2,744
2,780
BANKBARODA
147
152
157
162
166
BHEL
124
126
128
131
133
BPCL
637
647
662
672
687
BHARTIARTL
311
316
321
325
330
INFRATEL
341
347
354
361
368
BOSCH
20,363
20,817
21,193
21,647
22,023
CIPLA
558
571
580
593
602
COALINDIA
291
303
311
323
331
DRREDDY
2,815
2,897
3,026
3,108
3,237
EICHERMOT
22,276
22,535
22,938
23,197
23,601
GAIL
427
440
447
460
467
GRASIM
829
838
852
860
874
HCLTECH
786
818
838
870
890
HDFCBANK
1,171
1,202
1,223
1,253
1,274
HDFC
1,199
1,223
1,237
1,261
1,275
HEROMOTOCO
2,967
3,007
3,059
3,099
3,152
HINDALCO
148
160
170
181
191
HINDUNILVR
812
820
833
840
853
ICICIBANK
251
259
265
273
279
IDEA
61
65
70
74
79
INDUSINDBK
1,097
1,156
1,198
1,257
1,299
INFY
916
946
993
1,023
1,070
ITC
239
244
248
253
256
KOTAKBANK
695
711
723
740
752
LT
1,342
1,390
1,425
1,474
1,508
LUPIN
1,460
1,478
1,502
1,520
1,544
M&M
1,182
1,200
1,219
1,237
1,256
MARUTI
5,517
5,608
5,702
5,793
5,886
NTPC
155
163
169
177
183
ONGC
193
197
201
205
209
POWERGRID
179
188
194
203
209
RELIANCE
1,060
1,075
1,086
1,102
1,113
SBIN
242
246
250
255
259
SUNPHARMA
616
634
646
665
676
TCS
2,160
2,205
2,282
2,327
2,405
TATAMTRDVR
306
315
323
331
339
TATAMOTORS
478
497
510
529
542
TATAPOWER
75
77
79
81
83
TATASTEEL
407
427
439
459
471
TECHM
450
469
481
500
512
ULTRACEMCO
3,191
3,255
3,325
3,389
3,459
WIPRO
453
469
478
493
502
YESBANK
1,207
1,262
1,303
1,359
1,399
ZEEL
451
464
475
488
499
Technical Research Team
For Private Circulation Only
2
Derivatives Review | January 14, 2017
FIIs continued their buying streak in Futures
Nifty spot closed at 8400.35 this week, against a close of 8243.80 last week. The Put-Call Ratio has increased from 1.11 to 1.23
levels and the annualized Cost of Carry is positive at 6.28%. The Open Interest of Nifty Futures increased by 10.78%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 17.35
Futures
Chg (%)
Chg (%)
points against a premium of 23.85 points to its spot. Next
DCBBANK
4756500
97.57
124.40
8.74
month future is trading with a premium of 42.70 points.
BEML
1432200
66.34
1209.85
21.20
PCR-OI has increased from 1.11 to 1.23 levels. In call option,
COALINDIA
12542600
35.53
311.65
2.26
8500 and 8600 strikes added decent build-up, followed by
INFY
19562500
34.21
979.00
0.29
some unwinding in 8200-8300 call options. While, on the
APOLLOTYRE
10314000
32.79
188.50
(0.58)
other hand, we witnessed significant build-up in 8300-8400
put options and some OI addition in 8100 and 8200 put
CONCOR
1134000
32.63
1206.20
3.44
options. Highest OI in January series is placed at 8400 call
PETRONET
4767000
31.00
369.45
(1.53)
and 8000 put options.
ARVIND
7170000
30.98
370.35
2.17
Stock that added longs last week are DCBBANK, BEML, KSCL,
BEL and INDUSINDBK. While, fresh shorts were visible in
DRREDDY, RCOM, IDEA, CADILAHC, and GRANULES. Liquid
Weekly OI losers
counters with higher CoC are JSWSTEEL, RCOM, BHEL,
OI
OI
Price
Scrip
Price
SYNDIBANK and IDFC. Stocks with negative CoC are
Futures
Chg (%)
Chg (%)
UNIONBANK, COALINDIA, CANBK, CEATLTD and
IBULHSGFIN
12112800
(13.15)
748.95
13.50
HINDPETRO.
WIPRO
4928400
(11.32)
484.65
2.77
Last week, Nifty managed to surpass the resistance of 8300
WOCKPHARMA
3082200
(11.25)
697.35
(2.08)
on the back of good amount of long addition in Index as well
MCLEODRUSS
4692000
(8.70)
154.00
8.53
as Stock Futures. While on options front, we witnessed FIIs
INDIACEM
26971000
(7.72)
131.60
4.69
writing 8200-8300 puts, suggesting 8250-8300 to now act as
a good support for market. Thus looking at the overall F&O
JETAIRWAYS
5101000
(6.76)
391.30
4.88
data, we expect continuation of recent optimism in the market.
PIDILITIND
1394000
(6.69)
640.75
4.17
Thus, any dip near 8300-8350 levels should be used as a
L&TFH
21447000
(6.03)
95.15
2.48
buying opportunity.
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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