Technical and Derivatives Review | August 17, 2018
Get ready for a burst through moves in individual pockets
Sensex (37948 ) / Nifty (11471)
Source: Trading View
Future outlook
Index consolidated around the lower trading range for the major part of the week. Despite lot of global uncertainty our markets
managed to produce a remarkable session on Friday. Of late, we have been clearly bucking the trend and it appears that finally
global peers gave up and joined hands with our optimism. As far as Nifty is concerned, the index is now at the kissing distance away
from yet another milestone of 11500.
The week clearly belongs to the individual pockets and mostly the ‘midcap’ universe which was buzzing in the course of action. We
are not surprised with this move as we have been consistently pursuing the midcap basket since last couple of weeks. Going ahead,
this theme is likely to be the flavor of the market and one should keep focusing on it in order to get potential bets in the near term.
Now, it’s a matter of time, we would be surpassing the recent swing high of 11495.20 quite soon and would continue the march in
the northward direction. Post this, yet another leg would unfold for the index and hence, it’s advisable to stay with the flow rather
than becoming skeptical of the move. In fact, we will not be surprised to see a strong stock specific rally hereafter, may be a burst
through move. The support now would be seen in the range of 11431 - 11340. As long as these levels hold, use dips to buy into the
market.
For Private Circulation Only
1
Technical and Derivatives Review | August 17, 2018
Options data hints index to rally beyond 11500
Nifty spot closed at 11470.75 this week, against a close of 11429.50 last week. The Put-Call Ratio has decreased from 1.75 to 1.66
and the annualized Cost of Carry is positive at 4.33%. The Open Interest of Nifty Futures increased by 6.61%.
Derivatives View
Nifty current month future closed with a premium of 17.70 points against a premium of 9.75 points to its spot. Next month future is
trading with a premium of 54.35 points.
As far as Nifty options activities for the week are concerned, we saw fresh build-up in 11600 call options. On the flip side, fresh
writing was seen in 11400 and 11500 put options. At current juncture, 11500 followed by 11600 call and 11000 followed by 11300 put
options are attracting trader’s attention.
We started-off last week with decent cut but fresh buying emerged on Tuesday from the support zone of 11300-11350. During the week,
we saw addition of fresh long positions in Nifty futures to conclude the week tad above 11450 mark. Friday’s options data was quite
encouraging as we saw huge unwinding in 11500 call along with writing in 11400 and 11500 put options, which hints we are soon heading
above the hurdle of 11500 mark. Thus, traders are advised to continue to trade with optimistic view for the coming week.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Pric
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%
APOLLOHOSP
1622500
31.64
1189.25
25.43
ALBK
19910000
36.30
40.00
(10.91)
PAGEIND
72475
29.13
34051.70
8.00
IGL
6204000
30.18
277.20
(7.45)
BALKRISIND
1480000
23.66
1373.25
9.20
ICICIPRULI
4371900
30.00
391.40
(5.54)
GRASIM
7348500
21.87
1045.10
7.06
CADILAHC
15320000
29.18
358.25
(5.16)
TORNTPHARM
524500
9.73
1773.30
4.03
SRTRANSFIN
4482600
26.14
1331.45
(6.15)
Weekly change in OI
For Private Circulation Only
2
Technical and Derivatives Review | August 17, 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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