Technical and Derivatives Weekly Review - July 17, 2023

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Technical and Derivatives Review |July 17, 2023

Bulls continue to dominate; Nifty clocked new highs

Sensex (66061) / Nifty (19565)

Source: Tradingview.com

Future outlook

The Indian equity markets had a splendid move in the eventful week, wherein the benchmark index Nifty50 witnessed continuation

in the uptrend consecutively for the third week. The broad-based participation amidst the commencement of earning season

showcased the eagerness of the bulls to levitate the market. The Nifty50 index maintained its positive stature and clocked new highs

to settle the week at uncharted territory, procuring 1.20 percent of weekly gains.

The supportive moves among the global peers and the sectoral rotation were evident throughout the week, which certainly got

reflected in the price action of the benchmark index. From a technical aspect, the bulls are being resilient to let loose their grip even

in the overbought parameters which showcase their dominance. But at the same time, one should not become complacent and

overrule the possibility of a breather post the steep rally. As far as levels are concerned, 19400-19300 is likely to cushion any short-

term blip, while the sacrosanct support lies around the bullish gap of 19200 in the comparable period. On the flip side, as the index

entered uncharted territory there is no relevant hurdle; however, the next pitstop could be seen around 19650-19700 on an

immediate basis.

Going ahead, we remain sanguine with the current momentum and would advocate the traders to utilize the dips to add long

positions in the index. Also, we expect strong moves in the broader market amidst the quarterly earnings, so one needs to have a

stock-centric approach for better trading opportunities and also stay abreast with global and domestic developments.

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Technical and Derivatives Review |July 17, 2023

Sho

Form

ion

Nifty settles at the highest point ever

Nifty spot closed at 19564.50 this week, against a close of 19331.80 last week. The Put-Call Ratio has increased from 0.89 to 1.34 on

Weekly basis. The annualized Cost of Carry is positive at 4.93%. The Open Interest of Nifty Futures increased by 3.84%.

Derivatives View

Nifty current month’s future closed with a premium of 34.35 against a premium of 66.70 points to its spot in the previous week.

Next month’s future is trading at a premium of 131 points.

It’s the third consecutive week of positive close for the Indian equity market wherein the Nifty conclude at the highest point ever at

19564.50. On the derivatives front, addition of fresh longs was seen in Nifty, whereas short covering was observed in banking index.

Stronger hands continue to pump in liquidity and covered shorts in index futures segment. For the coming weekly series, we

observed noteworthy writing in 10400-19500 puts which may act as support now. On the flip side, some fresh build-up was seen in

19650 and 19750 call strikes. Considering the above development, we maintain our optimistic stance on market and would advocate

using intraday declines to add fresh longs.

Scrip

Futures

Chg (%)

Price

Chg(%)

POWERGRID 42036300 36.33 241.20 (6.11)

FEDERALBNK 162755000 35.61 129.40 (4.54)

ATUL 594150 34.36 6501.40 (2.96)

PIIND 2221750 31.02 3645.75 (3.48)

DEEPAKNTR 3185700 24.49 1941.00 (5.69)

Weekly change in OI

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

INDIAMART 779400 48.88 2862.70 4.18

ESCORTS 1935450 27.75 2380.25 6.98

LTTS 1384200 25.31 4110.10 4.97

COLPAL 4145050 22.65 1842.70 3.91

COFORGE 651150 21.63 4945.50 4.98

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Technical and Derivatives Review |July 17, 2023

Sameet Chavan Head Research – Technical & Derivatives sameet.chavan@angelone.in

Sneha Seth Senior Analyst – Technical & Derivatives sneha.seth@angelone.in

Rajesh Bhosale Analyst – Technical rajesh.bhosle@angelone.in

Osho Krishan Senior Analyst – Technical & Derivatives osho.krishan@angelone.in

Hitesh Rathi Analyst – Technical & Derivatives hitesh.rathi@angelone.in

Research Team Tel: 022 - 39357600 Website: www.angelone.in

For Technical Queries E-mail: technicalresearch-cso@angelone.in

For Derivative Queries E-mail: derivatives.desk@angelone.in

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Technical and Derivatives Review |July 17, 2023

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