Technical and Derivatives Review | June 15, 2018
10700 - 10650 to be seen as crucial support
Sensex (35622 ) / Nifty (10818)
Source: Trading View
Future outlook
In the week gone by, despite index giving swings on either sides, overall we can interpret this as a consolidation. There was only one
sector that stood out throughout the week and has given some eye-popping moves i.e. the ‘Pharmaceutical’ space. The move was
satisfying for us as we have been quite vocal about ‘Nifty Pharma’ getting bottomed out since last three weeks. The anticipation has
now turned into a confirmation and hence, medium term traders are advised to focus on this basket and should continue
accumulating marquee names on meaningful dips.
As far as benchmark is concerned, we had a gradual move towards the 10900 mark and since, most of the heavyweight constituents
have taken a back seat, index failed to surpass this hurdle. The latter half traded with some weakness but market is clearly lacking
direction as well as the momentum. On the downside, we would be closely tracking a crucial support zone of 10700 - 10650. Only a
sustainable slide below this junction would reinforce some weakness in the market. Till then this consolidation continues and on the
higher side, 10900 - 10920 would be seen as immediate hurdle.
At this juncture, traders should continue focusing on individual stocks and should avoid aggressive bets until we see a decisive
breakout from this congestion zone in either direction.
For Private Circulation Only
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Technical and Derivatives Review | June 15, 2018
Volatility index at 9-month low
Nifty spot closed at 10817.70 this week, against a close of 10767.65 week. The Put-Call Ratio has increased from 1.49 to 1.57 and the
annualized Cost of Carry is negative at 0.79%. The Open Interest of Nifty Futures increased by 10.53%.
Derivatives View
Nifty current month future closed with a discount of 3.05 points against a discount of 19.55 points to its spot. Next month future is
trading with a discount of 6.10 points.
As far as Nifty options activities for the week are concerned, we saw fresh build-up in 11100 call; followed by some unwinding in
10600-10700 strikes. On the flip side, 10700-10800 put options added fresh positions; while, some unwinding was seen in
10200-10600 put options. At current juncture, 11000 call and 10700 put options are attracting trader’s attention.
The benchmark index rallied towards 10900 mark on Wednesday; but, profit booking at higher levels dragged index back to 10800 levels.
Eventually, we concluded the third consecutive week on a positive note. In last two trading session, we witnessed decent unwinding in
10600-10800 put options; whereas, fresh writing was seen in 10800 and 11000 call options. At the same time, stronger hands continued
adding bearish bets in equities and index futures segment last week. Considering the above data points, we would advise traders to lighten
up their longs in system and prefer stock specific approach for the time being.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Pric
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%
DRREDDY
4520000
6.76
2357.15
18.90
CGPOWER
41208000
27.14
56.55
(24.30)
GLENMARK
5363800
12.25
588.60
9.50
NBCC
23184000
10.46
85.25
(13.63)
STAR
5753800
30.50
392.80
9.38
GMRINFRA
298980000
6.39
15.85
(12.43)
GODREJIND
1993500
9.83
617.80
8.40
IFCI
67793000
4.30
16.70
(12.34)
BPCL
10602000
17.82
411.05
7.87
INDIACEM
25718000
7.29
115.25
(12.12)
Weekly change in OI
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2
Technical and Derivatives Review | June 15, 2018
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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