Technical Picks | February 18, 2017
8700 acted as a sheet anchor, gearing up for all time highs
Sensex (28469) / Nifty (8822)
The Nifty index started the week on a flat note and continued
Exhibit 1: Nifty Weekly chart
its range bound action for first couple of days. However,
owing to the stock specific corrective moves, the market
breadth was negative and thus, the index corrected and
closed below the '5 DEMA' on Wednesday. While this
correction was merely a profit booking within an uptrend,
the '89 EMA' on hourly chart provided a good support for
the bulls. Hence, the index bounced back higher from the
mentioned average on Thursday and resumed the uptrend
with a gap up opening on Friday. Although, the index gave
up some of the gains post a gap up opening on Friday, the
recovery in last couple of sessions led to the index ending
the week with gains of 0.32 percent over its previous week's
close.
Source: Company, Angel Research
Key Moving Averages:
Exhibit 2: Nifty Daily chart
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at
27369
/
8451 and
26657 / 8165 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at
28024
/
8679 and
27406 / 8463 levels, respectively.
Future outlook
We had taken some cues (about the ongoing consolidation
phase) from previous week’s price action as the index
struggled around the 8800 mark and the similar price action
was being witnessed for the major part of the concluded
Source: Company, Angel Research
week as well. However, on the other hand, despite a decent
Going forward, undoubtedly, we would continue to remain
dip on Wednesday, 8700 proved its significance as the Nifty
upbeat on the market and expect the index to gradually
managed to recover immediately after posting a weekly low
move towards the all time high. Before this, 8896 - 8969
of 8712.85.
would be seen as immediate levels for the forthcoming
Now, finally on Friday, the Nifty confirmed a daily close
week. On the flip side, 8783 - 8712 is now likely to provide
beyond the 8820 which has been acting as a stiff hurdle of
decent support in the near term.
late. Although, it’s mainly on the back of price development
seen in the heavyweight counter ‘HDFC Bank’ after some
positive news flow, we would respect the price action and
confirm this as a breakout from the ‘Downward Sloping
Trend Line’ (despite some intraday correction from morning
high) on the daily chart.
For Private Circulation Only
1
Technical Picks | February 18, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
27,808
28,139
28,432
28,763
29,056
NIFTY
8,627
8,724
8,810
8,908
8,994
NIFTY BANK
19,606
20,079
20,561
21,033
21,515
ACC
1,401
1,433
1,468
1,500
1,535
ADANIPORTS
280
289
302
311
324
AMBUJACEM
229
233
238
242
246
ASIANPAINT
928
944
972
989
1,017
AUROPHARMA
604
634
659
689
714
AXISBANK
470
479
492
501
514
BAJAJ-AUTO
2,716
2,748
2,782
2,814
2,848
BANKBARODA
150
158
171
179
191
BHEL
144
149
153
158
163
BPCL
630
654
687
711
744
BHARTIARTL
346
358
365
377
384
INFRATEL
292
300
314
322
336
BOSCH
21,062
21,490
22,157
22,586
23,252
CIPLA
562
577
587
603
612
COALINDIA
305
311
317
322
328
DRREDDY
2,711
2,812
2,900
3,001
3,089
EICHERMOT
23,450
24,245
24,898
25,693
26,345
GAIL
462
486
500
524
537
GRASIM
980
1,010
1,028
1,058
1,075
HCLTECH
808
824
837
853
866
HDFCBANK
1,222
1,300
1,377
1,454
1,532
HDFC
1,343
1,373
1,403
1,433
1,463
HEROMOTOCO
2,908
2,998
3,139
3,228
3,369
HINDALCO
177
180
185
189
193
HINDUNILVR
818
830
849
860
879
ICICIBANK
267
275
281
289
294
IDEA
96
101
107
112
117
INDUSINDBK
1,281
1,309
1,338
1,366
1,394
INFY
941
971
992
1,022
1,043
ITC
257
263
270
275
282
KOTAKBANK
764
780
796
812
827
LT
1,435
1,456
1,483
1,504
1,531
LUPIN
1,400
1,429
1,454
1,484
1,508
M&M
1,171
1,244
1,287
1,360
1,403
MARUTI
5,693
5,841
5,991
6,139
6,288
NTPC
166
168
169
171
173
ONGC
187
191
194
198
201
POWERGRID
197
200
201
204
206
RELIANCE
1,002
1,039
1,059
1,095
1,115
SBIN
260
265
272
276
283
SUNPHARMA
602
639
658
695
715
TCS
2,317
2,363
2,420
2,466
2,523
TATAMTRDVR
235
256
289
310
343
TATAMOTORS
388
421
467
499
545
TATAPOWER
80
82
83
86
87
TATASTEEL
446
457
467
478
488
TECHM
479
491
501
514
524
ULTRACEMCO
3,551
3,635
3,718
3,801
3,884
WIPRO
459
467
475
484
492
YESBANK
1,379
1,410
1,441
1,472
1,503
ZEEL
501
511
519
529
537
Technical Research Team
For Private Circulation Only
2
Derivatives Review | February 18, 2017
No signs of reversal yet, stay long
Nifty spot closed at 8821.70 this week, against a close of 8793.55 last week. The Put-Call Ratio has decreased from 1.12 to 1.11
levels and the annualized Cost of Carry is positive at 3.65%. The Open Interest of Nifty Futures increased by 17.69%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 5.30
Futures
Chg (%)
Chg (%)
points against a premium of 15.80 points to its spot. Next
SRF
875500
58.61
1594.40
(9.15)
month future is trading with a premium of 35.85 points.
AMARAJABAT
1535400
52.68
855.95
(2.32)
PCR-OI has decreased from 1.12 to 1.11 levels. In call option,
BANKBARODA
52244500
45.05
166.50
(11.60)
except for some marginal build-up in 8850 and 9000 strikes;
SOUTHBANK
55279188
36.19
20.10
(12.04)
we didn’t see any meaningful build-up in other strikes.
However, some unwinding was seen in 8600 and 8700 call
HEROMOTOCO
1938800
34.60
3094.20
(5.66)
options. While in put options, we saw some open interest
JPASSOCIAT
191012000
27.22
15.00
11.11
addition in 8750-8850 strikes, followed by good amount of
TATAMOTORS
44766000
25.79
452.35
(11.55)
unwinding in 8500 put option. Highest OI in current series is
placed at 9000 call and 8500 put options.
ALBK
16100000
22.71
70.65
(4.66)
Stock that added longs last week are JPASSOCIAT,
CADILAHC, KOTAKBANK, CAIRN and WOCKPHARMA. While,
Weekly OI losers
fresh shorts were visible in SRF, AMARAJABAT, BANKBARODA,
SOUTHBANK and HINDALCO. Liquid counters with higher
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
CoC are GMRINFRA, IBREALEST, SOUTHBANK, NHPC and
BATAINDIA
3083300
(16.92)
501.75
1.15
EICHERMOT. Stocks with negative CoC are UNIONBANK,
CANBK, CESC, CONCOR and HDFCBANK.
NIITTECH
682500
(16.67)
426.20
(0.06)
Last week, Nifty rebounded from the lows of 8712 and
PAGEIND
39700
(14.62)
14363.00
(0.74)
surpassed the resistance zone of 8820-8830. FIIs too actively
CESC
3741100
(14.31)
852.40
2.07
participated in this up move by adding good amount of longs
BHARATFORG
3478200
(13.02)
1064.10
5.04
in Index Futures. While, long positions formed since beginning
of February series are still intact. We believe market may
JINDALSTEL
45531000
(11.21)
93.40
2.41
continue it’s up move in near term. Thus, traders are
HEXAWARE
6114000
(10.26)
212.50
3.31
suggested to trade with a positive bias unless we see any
BRITANNIA
1295000
(10.26)
3244.55
(0.26)
relevant change in data.
Weekly change in OI
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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