1
For Private Circulation Only
Technical
and Derivatives Review
| May 14, 2021
Weakness across the globe becomes the real spoilsport
Sensex (48733) / Nifty (14678)
Source: Trading View
Future outlook
Yet another Monday kick-started with a gap and this time it surprised pleasantly in the upward direction. Subsequently, the
benchmark index consolidated within a range throughout the day by maintaining its positive posture. Amongst a good stock specific
action, Nifty managed to reclaim the 14950 mark on the first day itself. Everything looked rosy and things were very much in place
for a breakout from the recent congestion phase. However, all of a sudden the global markets looked a bit shaky and started
correcting sharply from their recent highs. This had a rub off effect on our markets which dragged the index lower to conclude
marginally inside the sub-14700 territory.
The weakness across the globe became the real spoilsport and did not let our markets go beyond the recent consolidation range. But
we must also accept the fact that we have outperformed our global peers significantly as we did not fall to the tune of the global
indices. At the end, we still remain directionless and completely clueless which way we are heading now. It would be wise to
mention few key levels and keep a close track of it in the first half of the forthcoming week. As far as supports are concerned, 14540
followed by 14400 are to be seen as key levels. A sustainable move below the lower range would certainly dent the possibility of
some positivity in the short term. On the flipside, 14750 – 14830 are to be seen as key hurdles. If we have to regain strength then
Nifty needs to go beyond 14830 first.
Similar to the previous week, we witnessed ample of thematic moves playing out one after another. Only on Friday there was no
clear winner and in fact, the broader market saw some decent correction, which is not an encouraging sign. We advise traders to
keep a tab of all the above mentioned levels and meanwhile continue with a stock centric approach. Further, it’s advisable to stay
light and avoid aggressive bets till the time global volatility subsides.
2
For Private Circulation Only
Technical
and Derivatives Review
| May 14, 2021
FII’s ‘Long Short Ratio’ plunged below 50
Nifty spot closed at 14677.80 this week, against a close of 14823.15 last week. The Put-Call Ratio has decreased from 1.33 to 1.11.
The annualized Cost of Carry is positive at 6.60%. The Open Interest of Nifty Futures increased by 0.76%.
Derivatives View
Nifty current month future closed with a premium of 37.15 points against a premium of 36.85 points to its spot. Next month future
is trading at a premium of 62.85 points.
In options segment, except for decent build-up in 14800 call options, we hardly saw any relevant open interest change in monthly
series. Maximum build-up in the monthly series is placed in 15000 call and 14000 put options.
We started-off the truncated week with an upside gap tad above 14900 mark and saw the benchmark index consolidating around
14950 mark. The psychological mark of 15000 acted as a sturdy hurdle on Monday; we witnessed decent selling pressure in Nifty
which resulted in consistent fall for next three sessions to plunge below 14600 mark. Due to some respite in the latter half of
Friday’s session, we concluded the week with a cut of almost a percent. Surprisingly, in futures segment we hardly saw any relevant
OI change WoW. The banking space underperformed the benchmark index to end the week 2.33% lower to the previous week’s
close and also added decent bearish bets. Except for Monday, FIIs preferred selling equities during the week. They also exited longs
and added good amount of shorts in index futures; resulting their ‘Long Short Ratio’ declining from 53% to 42%. The overall
development seen during the week is not an encouraging sign; hence, we would advise traders avoiding any aggressive bets
especially in index and rather prefer trading in individual counters as they are have been showing mesmerizing move recently.
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
LALPATHLAB 540750 31.73 2730.65 (5.00)
CUMMINSIND
12636
00
31.30
817.30
(2.96)
NAUKRI
1351000
27.53
4312.10
(8.36)
M&MFIN
33712000
26.89
151.70
(2.44)
CHOLAFIN
6390000
24.17
527.85
(7.07)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
COALINDIA 49866600 40.89 147.40 7.01
B
ANKBARODA
137709000
28.03
74.15
4.58
TORNTPOWER
2310000
24.80
429.90
2.87
GODREJCP
5055000
22.93
854.90
21.17
IOC
71428500
20.05
101.45
6.40
3
For Private Circulation Only
Technical
and Derivatives Review
| May 14, 2021
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com
For Derivative Queries E-mail: [email protected]
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com
Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com
