1
For Private Circulation Only
Technical and Deriva
tives Review
| April 17, 2020
Some positivity across the globe, Nifty surpasses 9200
Sensex (31589) / Nifty (9267)
Source: Trading View
Future outlook
Previous week’s spectacular rally was followed by a sluggish start for the new trading week on Monday. The index consolidated with mildly
negative bias. The similar action was seen on the subsequent session as well. On Thursday, the index opened lower and then had a decent
recovery to close tad below the 9000 mark. However the real action of the week was mainly seen on Friday as we had a massive gap up
opening followed by indecisive swings throughout the first half. During the latter half, strong buying emerged across the board to conclude
the week well above 9200 by adding couple of percent gains to the bulls’ kitty.
Our market was clearly struggling at higher levels for the major part of the week but we also cannot deny the fact that the market was
reluctant to fall as well. Every time Nifty approached 8800-8850, the buying tends to emerge and finally we saw surpassing of 9200 on a
closing basis. Technically, this development was crucial for our markets as we can now see the immediate base getting shifted higher from
8000 to 8650-8800. On the flip side, this opens up the floodgates to extend this relief rally towards 9500-9800 in coming days. Importantly,
the banking index which has been the weakest link of late, has finally made a strong come back. This certainly provides credence to the move.
Apart from banking, Auto index has shown some strength along with the midcap space which has been buzzing throughout the week. At
present, traders are advised to keep following stock specific approach and since we are still not completely out of the woods when it comes
to Coronavirus pandemic, one should keep booking profits on a regular basis.
2
For Private Circulation Only
Technical and Deriva
tives Review
| April 17, 2020
8800 a crucial support for near term
Nifty spot closed at 9266.75 this week, against a close of 9111.90 last week. The Put-Call Ratio has decreased from 1.53 to 1.38. The
annualized Cost of Carry is positive at 13.50%. The Open Interest of Nifty Futures has decreased by 2.15%.
Derivatives View
Nifty current month future closed with a premium of 44.55 points against a discount of 25.20 points to its spot. Next month future is
trading with a premium of 69.20 points.
As far as Nifty options activities for the week are concerned, we witnessed some open interest addition in 9500-9800 call options
whereas 9000-8800 put options too witnessed open interest addition. Maximum open interest for the monthly series now stands at
10000 call option and 8000 put option.
During the week, the Nifty traded within the range of 8800-9320 and ended the week near the higher end of the range. FII’s covered
some of their short positions in the index futures segment and their ‘Long Short Ratio’ is now around 50 percent compared to about
30 percent at the start of the series. India VIX corrected by around 15 percent to end the week around 42. If we look at the options
data, 9000 put option has decent amount of open interest in the monthly series and during intra week, we did not see any unwinding
inspite of the index sneaking below the same. Thus, for the near term 9000-8800 is now seen as a crucial support for Nifty. Till the
mentioned support is intact, traders should prefer to trade with a positive bias for a probable target around 9500.
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg (%)
UJJIVAN 2374900 49.41 189.85 22.17
PVR 1452000 37.19 1168.55 20.19
SRTRANSFIN 2485200 35.85 782.95 18.07
L&TFH 26028800 35.12 64.50 14.46
TATACHEM 1243800 29.52 255.45 9.49
Weekly change in OI
(4,000)
(2,000)
0
2,000
4,000
6,000
8,000
10,000
Call Put
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg (%)
TORNTPHARM 831000 76.06 2259.70
(12.00)
BAJFINANCE
5165000
15.98
2320.85
(8.97)
PEL
3032217
11.85
897.85
(6.58)
TECHM
14029200
18.46
512.80
(6.40)
ZEEL
20580200
9.80
140.80
(6.04)
3
For Private Circulation Only
Technical and Deriva
tives Review
| April 17, 2020
Research Team Tel: 022 - 39357600 Website: www.angelbroking.com
For Technical Queries E-mail: technicalresearch-cso@angelbroking.com
For Derivatives Queries E-mail: derivatives.desk@angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and Portfolio
Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing
in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public offering of
securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources
believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for
general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or
damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has
not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any
representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking
Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or
other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com
Ruchit Jain Technical Analyst ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com
Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com