Technical Picks | October 14, 2017
Diwali gift for markets, consolidation possible in truncated week
Sensex (32433) / Nifty (10168)
Nifty Daily chart
Source: Falcon
Future outlook
It seems that our markets are enjoying their merry days and are in no hurry to provide a much awaited correction. On Wednesday,
we saw intimidating move and somehow reminded of a sharp sell-off seen during the penultimate week. But, markets are in a
different mood and have once again displayed their strength by clocking a new record high of 10191.90.
Technically speaking, the index has been vacillating within the boundaries of a ‘Broadening’ pattern since last three months. As per
the theory, the higher end is placed in the range of 10200 - 10220. We still believe that one should not trade aggressively in the
market as there is a series of divergences on ‘RSI-Smoothened’. Yes, market is not obliging this indicator; but, considering historical
performances of this indicator, we need to give some respect. Our strategy is to keep focusing on individual stocks and one should
keep booking profits in rallies.
For the coming week, immediate resistance would be seen at 10200 - 10220 and a sustainable move beyond this would extend this
rally. On the flipside, 10120 - 9955 are likely to act as strong support levels. Being a Diwali week, we expect some kind of
consolidation in the market.
We would like to wish everyone a Happy Diwali and Prosperous New Year!!!.
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Technical Picks | October 14, 2017
Base has now shifted higher to 9950-10000 levels
Nifty spot closed at 10167.45 this week, against a close of 9979.70 last week. The Put-Call Ratio has increased to 1.63 from 1.37 levels and
the annualized Cost of Carry is positive at 6.89%. The Open Interest of Nifty Futures increased by 14.93%.
Derivatives View
Nifty current month future closed with a premium of 24.95 points against a premium of 23.70 points to its spot. Next month future is
trading with a premium of 56.90 points.
PCR-OI has surged from 1.63 to 1.37 on week on week basis mainly because of huge build-up in put options. In call option, 10300 strike
added some fresh positions; followed by good amount of unwinding in 9900-10100 call options. While, in put options, 10000 and 10100
strikes were most active and they also added significant positions. In addition, some open interest addition was also witnessed in 9900 and
10200 put options. At present, maximum open interest concentration for October series is placed at 10200 call and 10000 put option.
The benchmark index rallied 1.89% and hits a new record high along with decent open interest additions, suggesting continuation of long
formation during preceding week. FIIs too actively participated in recent upmove by forming fresh long positions in index as well as stock
futures. At the same time, highest open interest in put option has shifted higher to 10000 strike, indicating strong base formation around
9950-10000 levels. Thus, we believe unless we don’t see any relevant correction below support zone, market may continue its
ongoing momentum.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Price
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%)
NBCC
4305000
44.51
244.10
12.90
AMARAJABAT
2675400
34.11
691.20
(2.05)
SRF
869000
32.57
1734.20
9.31
RAMCOCEM
538400
28.93
686.85
(3.12)
BHARTIARTL
31679500
25.03
432.20
12.77
JISLJALEQS
49032000
21.80
93.25
(5.47)
NIITTECH
934500
23.61
625.60
10.36
BANKINDIA
21570000
20.60
136.65
(3.80)
KTKBANK
28355600
22.13
164.25
11.32
ZEEL
7282600
17.27
512.20
(2.25)
HINDALCO
44359000
20.57
266.65
6.02
RELINFRA
12151100
14.56
465.40
(1.49)
HAVELLS
3924000
18.26
540.85
5.82
VEDL
55485500
14.07
322.70
(1.53)
INFRATEL
10708300
17.34
450.30
11.99
ORIENTBANK
16356000
13.07
115.25
(7.21)
Weekly change in OI
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2
Technical Picks | October 14, 2017
Technical and Derivatives Team:
Sameet Chavan
Chief Analyst - Technical & Derivatives
[email protected]
Ruchit Jain
Technical Analyst
[email protected]
Rajesh Bhosale
Technical Analyst
[email protected]
Sneha Seth
Derivatives Analyst
[email protected]
Research Team Tel: 022 - 39357600
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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