Technical and Derivatives Review | June 15, 2019
Market lacking clear direction, wait for a breakout
Sensex (39452) / Nifty (11823)
Source: Investing.com
Future outlook
It was yet another week of consolidation for our markets in the absence of major triggers. Index started off well with some hope of
surpassing the stiff hurdle of 12000, but once again the attempt turned unsuccessful. During the remaining part of the week, index
kept vacillating around the lower band of the range to eventually conclude tad above the 11800 mark.
Although it was a week of consolidation for our markets, the overall bias remained on the negative side and hence, any intra-week
pull back was getting sold into. Now, with this price development we can see the trading range getting shrunk further and whenever
this happens, soon we get a breakout (on the either side) from the congestion zone. On the lower side, 11769 is the level to watch
out for. Any sustainable move below this would trigger sell off to head towards 11600-11550 levels. However, looking at the broader
picture, we are still hopeful and expect the market to breakout in the upward direction. On the higher side, 11950-12000 has
become a sturdy wall.
At this juncture, the pragmatic strategy would be to stay light and wait for breakout from the mentioned range to create aggressive
positions. Meanwhile, keep focusing on individual stocks that are providing better trading opportunities.
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Technical and Derivatives Review | June 15, 2019
No major evidence in F&O space, prefer trading in individual stock
Nifty spot closed at 11823.30 this week, against a close of 11870.65 last week. The Put-Call Ratio has decreased from 1.32 to 1.26.
The annualized Cost of Carry is positive at 3.50%. The Open Interest of Nifty Futures has increased by 3.09.
Derivatives View
Nifty current month future closed with a premium of 14.75 points against a premium of 30.10 points to its spot. Next month future
is trading with a premium of 49.40 points.
As far as Nifty options activities for the week are concerned, except for some build-up in 11900-12000 calls, we hardly saw any
relevant activity last week. Maximum open interest for coming weekly series now stands at 12000 call and 11800 put options.
During the week, we hardly saw any major build-up in Nifty as well as BankNifty futures. In fact, stronger hands too hardly added
fresh positions in index and stock futures segment. They preferred lightening their existing positions in this consolidation phrase. To
conclude, the week gone by has left us with no major evidence in F&O space. At this point in time, 11800-11850 remains an
immediate base for the Nifty; whereas, resistance is placed around the psychological mark of 12000. At this point in time, we would
advise to wait for the follow-up development in the coming week. However, we had witnessed decent activity in individual counters;
especially in the Metal counters have been showing some respite after quite some time.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Price
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%)
BATAINDIA
1922800
23.32
1427.35
3.83
GAIL
19986498
22.71
308.75
(2.12)
POWERGRID
25628000
16.43
194.65
1.27
TORNTPHARM
652500
16.83
1482.65
(2.28)
JINDALSTEL
20871600
12.14
164.75
4.74
RBLBANK
5865600
16.33
625.85
(6.85)
MANAPPURAM
12390000
9.90
142.25
7.48
ESCORTS
6439400
12.60
560.25
(4.82)
NMDC
24972000
8.75
107.15
2.29
IBULHSGFIN
19656800
12.53
672.45
(8.55)
Weekly change in OI
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Technical and Derivatives Review | June 15, 2019
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
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E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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