Technical Picks | December 17, 2016
Stay on long side until 8056 remains unbroken
Sensex (26490) / Nifty (8139)
Trading for the week began with a gap down opening on
Exhibit 1: Nifty Weekly chart
Monday. However, the index was confined in a narrow
range on the same day. Although, the bearish momentum
did not continue, Nifty traded in a narrow range during the
remaining part of the week. Overall, the index consolidated
in a range of merely 108 points for the week, which is the
narrowest trading range in the recent past. Considering
week-on-week basis, Nifty shed nearly one and half a
percent from its previous closure.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at
27153
/
8369 and
Source: Company, Angel Research
26480 / 8094 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Exhibit 2: Nifty Daily chart
Sensex/Nifty are placed at
26572
/
8189 and
27119 / 8361 levels, respectively.
Future outlook
This was clearly a week of consolidation for our markets
despite the big global event (FOMC Meet), which eventually
turned out to be a non-event as the outcome of 25 bps hike
was pretty much on expected lines. However, due to last
week's price action, key levels in the near term are clearly
visible now to form a directional view. On the upside,
8220 - 8271 has become a stiff hurdle; whereas on the
downside, 8121 - 8056 seems to be a strong support zone.
Source: Company, Angel Research
Now technically speaking, since the 'Higher Top Higher
Bottom' on daily chart is still intact, we would continue with
At this juncture, traders are advised to stay on the long side
our optimistic view until recent swing low of 8056 remains
by keeping a strict exit point below 8056 and now it would
unbroken. Further, considering the 'Dragonfly Doji' pattern
be a prudent strategy to focus more on individual stocks,
formed during the antepenultimate week, we would expect
which may provide better trading opportunities.
the index to extend this bounce back rally towards
8320 - 8380 levels.
For Private Circulation Only
1
Technical Picks | December 17, 2016
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
26,215
26,352
26,545
26,682
26,875
NIFTY
8,055
8,097
8,164
8,206
8,273
NIFTY BANK
17,856
18,085
18,350
18,579
18,844
ACC
1,225
1,260
1,318
1,352
1,410
ADANIPORTS
270
275
283
288
297
AMBUJACEM
191
197
206
212
221
ASIANPAINT
869
884
911
926
953
AUROPHARMA
633
662
693
722
753
AXISBANK
427
450
465
488
504
BAJAJ-AUTO
2,581
2,620
2,668
2,708
2,756
BANKBARODA
153
156
160
163
166
BHEL
118
121
125
127
131
BPCL
587
599
616
628
645
BHARTIARTL
294
302
317
325
339
INFRATEL
344
350
356
362
368
BOSCH
18,942
19,533
20,391
20,982
21,840
CIPLA
546
556
569
579
592
COALINDIA
272
280
295
303
318
DRREDDY
3,045
3,077
3,133
3,164
3,220
EICHERMOT
20,477
21,118
22,106
22,748
23,736
GAIL
399
407
419
427
438
GRASIM
771
794
838
861
904
HCLTECH
768
794
817
844
866
HDFCBANK
1,149
1,166
1,180
1,197
1,211
HDFC
1,235
1,252
1,267
1,284
1,298
HEROMOTOCO
3,021
3,074
3,170
3,223
3,319
HINDALCO
160
165
174
179
188
HINDUNILVR
793
805
825
837
858
ICICIBANK
246
251
260
264
273
IDEA
73
75
76
78
80
INDUSINDBK
1,031
1,057
1,083
1,109
1,135
INFY
943
974
996
1,028
1,050
ITC
219
223
230
234
241
KOTAKBANK
691
705
726
740
760
LT
1,331
1,346
1,364
1,379
1,397
LUPIN
1,421
1,445
1,485
1,509
1,549
M&M
1,133
1,157
1,177
1,201
1,221
MARUTI
5,018
5,103
5,166
5,251
5,314
NTPC
154
157
163
165
171
ONGC
195
198
204
207
213
POWERGRID
178
181
184
187
190
RELIANCE
1,001
1,029
1,048
1,076
1,096
SBIN
254
259
264
270
275
SUNPHARMA
599
623
658
682
717
TCS
2,118
2,200
2,245
2,327
2,372
TATAMTRDVR
283
291
302
309
320
TATAMOTORS
435
454
470
489
505
TATAPOWER
73
75
78
79
82
TATASTEEL
401
408
419
426
437
TECHM
456
467
477
488
498
ULTRACEMCO
2,893
3,035
3,306
3,448
3,718
WIPRO
442
453
462
473
483
YESBANK
1,145
1,164
1,191
1,209
1,236
ZEEL
414
428
448
462
482
Technical Research Team
For Private Circulation Only
2
Derivatives Review | December 17, 2016
Nifty lingering near its strong support, buy on dips
Nifty spot closed at 8139.45 this week, against a close of 8261.75 last week. The Put-Call Ratio has decreased from 1.10 to 1.04
levels and the annualized Cost of Carry is positive at 2.43%. The Open Interest of Nifty Futures decreased by 8.77%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 7.05
Futures
Chg (%)
Chg (%)
points against a premium of 15.25 points to its spot. Next
CANBK
12315000
44.80
300.60
(5.17)
month future is trading with a premium of 42.25 points.
BHARATFIN
9890000
42.22
641.45
(10.62)
PCR-OI has decreased from 1.10 to 1.04 levels. In call option,
ONGC
39735000
37.57
202.25
(1.09)
8200-8300 strikes were active and they also added decent
GODREJIND
1864500
32.66
411.90
(0.52)
amount of positions. While in put option, we hardly witness
TVSMOTOR
7880000
32.35
371.50
2.37
any strike adding relevant build-up. However, some
unwinding was visible in 8300 put option. Highest OI in
PIDILITIND
1604000
28.94
609.50
(5.06)
December series is visible in 8300 call and 8000 put options.
CEATLTD
1493800
28.32
1242.35
(3.26)
Stock that added longs last week are IGL, CUMMINSIND,
PNB
56315000
26.53
125.30
(7.77)
BIOCON, GRANULES and ADANIENT. While, fresh shorts
were visible in BHARATFIN, IBULHSGFIN, PNB, CASTROLIND
and HAVELLS. Liquid counters with higher CoC are
Weekly OI losers
POWERGRID, ICICIBANK, INDUSINDBK, GRASIM and
OI
OI
Price
Scrip
Price
TATAPOWER. Stocks with negative CoC are PCJEWELLER,
Futures
Chg (%)
Chg (%)
TVSMOTOR, VOLTAS, MRF and BIOCON.
ENGINERSIN
5554500
(20.21)
306.05
(0.71)
AXISBANK
28660800
(18.62)
472.95
3.19
Last week, Nifty corrected from 8277 levels with fall in open
interest, suggesting long unwinding. We hardly witness any
TATAELXSI
1169400
(16.73)
1450.80
1.32
short formation during this move. However, decent amount of
MINDTREE
2492000
(15.77)
502.20
6.18
longs formed during start of December series are still intact. At
KTKBANK
16357750
(15.60)
113.60
6.07
current juncture Nifty has a strong support around 8100-8150
levels and taking into consideration the above data we believe
NTPC
14324000
(12.12)
160.40
(2.43)
Nifty has limited downside. Thus, any dips should be used as
RELIANCE
14373000
(11.26)
1058.35
2.75
buying opportunity.
VEDL
47381500
(10.88)
231.05
(5.21)
Weekly change in OI
20,000
Call
Put
15,000
10,000
5,000
0
(5,000)
(10,000)
(15,000)
For Private Circulation Only
3
Research Team Tel: 022 - 39357800
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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