Technical Picks | March 18, 2017
Nifty at record highs, lots more in the offing
Sensex (29649) / Nifty (9160)
The Nifty index ended the consolidation phase with a gap up
Exhibit 1: Nifty Weekly chart
opening on Tuesday as the market participants
commemorated the massive victory by BJP in the UP
elections. The Nifty gained 1.5 percent on Tuesday which
was followed by a positive momentum for next couple of
sessions. Tracking positive global cues, the Nifty index
opened with another upside gap on Friday. However, post
opening, the stock-specific profit booking was witnessed
which led the market breadth marginally in favour of the
declines. On weekly basis, the Nifty index posted reasonable
gains of 2.52 percent over its previous week's close.
Key Moving Averages:
Source: Company, Angel Research
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at
27927
/
8624 and
Exhibit 2: Nifty Daily chart
26865 / 8235 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at
28962
/
8950 and
27968 / 8637 levels, respectively.
Future outlook
Finally, the much awaited breakout beyond the 9000 mark
is a reality now and it has happened with a huge gap after
BJP’s thumping victory in UP assembly elections. Looking at
past few weeks’ price action, it appeared as if the market
had already discounted BJP’s win but it will happen with
such a huge margin was a pleasant surprise and hence, we
saw such delightful reaction from the market. This was then
Source: Company, Angel Research
supported by a decent correction in US dollar index post the
We reiterate that the Nifty is likely to head towards
announcement of rate hike by US Fed in the midst of the
week.
9400 - 9600 (price extension of previous up move from
recent low of 7893.80) over the next few weeks. Having said
Now, with reference to our recent articles, our persistent
that, in between some consolidation or a profit booking (like
bullish stance on the market since last couple of months has
we saw on Friday) by momentum traders cannot be ruled
played out well for us. Looking at the sturdy technical
out. On the lower side, 9100 - 9050 levels would provide a
structure of the market supported by various indicators, we
strong support in the forthcoming week. Traders are advised
anticipated this move and have participated heavily in it.
to keep using such dips to create fresh longs in the market.
Due to this week’s spectacular move, the Nifty has met with
our initial target of 9200. However, we saw some decent
profit taking after testing this level on Friday, which dragged
the index well below 9200 at the close. Despite this, the
weekly chart still looks strong and considering the rising
‘RSI-Smoothened’ level above the 70 mark, we continue to
remain upbeat with a directional view on the market.
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1
Technical Picks | March 18, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
29,141
29,395
29,610
29,864
30,078
NIFTY
8,988
9,074
9,146
9,232
9,304
NIFTY BANK
20,914
21,044
21,190
21,321
21,467
ACC
1,387
1,399
1,415
1,427
1,443
ADANIPORTS
295
310
319
335
344
AMBUJACEM
227
230
233
237
240
ASIANPAINT
1,019
1,049
1,071
1,101
1,122
AUROPHARMA
639
663
679
703
718
AXISBANK
501
509
517
526
534
BAJAJ-AUTO
2,810
2,861
2,905
2,956
3,000
BANKBARODA
156
160
165
170
174
BHEL
155
162
167
174
178
BPCL
619
631
640
652
661
BHARTIARTL
328
337
354
363
379
INFRATEL
301
305
310
315
319
BOSCH
21,802
22,301
22,720
23,219
23,638
CIPLA
582
590
598
605
613
COALINDIA
279
284
293
298
307
DRREDDY
2,691
2,714
2,739
2,762
2,788
EICHERMOT
23,126
23,909
24,348
25,131
25,571
GAIL
364
369
379
384
394
GRASIM
973
1,007
1,037
1,071
1,100
HCLTECH
824
845
858
879
892
HDFCBANK
1,399
1,413
1,420
1,433
1,441
HDFC
1,396
1,424
1,441
1,469
1,486
HEROMOTOCO
3,229
3,288
3,339
3,397
3,448
HINDALCO
183
190
195
202
207
HINDUNILVR
861
882
900
920
938
ICICIBANK
274
277
283
286
291
IDEA
94
101
109
116
124
INDUSINDBK
1,324
1,354
1,375
1,405
1,426
INFY
995
1,018
1,030
1,053
1,066
ITC
255
268
278
292
302
KOTAKBANK
821
835
846
859
870
LT
1,490
1,521
1,548
1,579
1,606
LUPIN
1,422
1,439
1,457
1,475
1,493
M&M
1,263
1,283
1,320
1,341
1,378
MARUTI
5,926
6,059
6,143
6,276
6,360
NTPC
156
158
160
162
164
ONGC
186
188
191
193
197
POWERGRID
189
191
195
198
201
RELIANCE
1,267
1,284
1,302
1,319
1,337
SBIN
268
271
276
279
284
SUNPHARMA
653
680
705
732
757
TCS
2,442
2,484
2,536
2,577
2,629
TATAMTRDVR
275
281
288
293
300
TATAMOTORS
461
469
476
484
492
TATAPOWER
81
83
85
88
90
TATASTEEL
455
479
494
517
532
TECHM
462
473
480
492
499
ULTRACEMCO
3,817
3,929
4,011
4,123
4,205
WIPRO
483
493
500
511
518
YESBANK
1,477
1,492
1,519
1,534
1,561
ZEEL
508
514
521
527
534
Technical Research Team
For Private Circulation Only
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Derivatives Review | March 18, 2017
Liquidity from FIIs desk hints market to remain optimistic
Nifty spot closed at 9160.05 this week, against a close of 8934.55 last week. The Put-Call Ratio has increased from 0.87 to 1.14
levels and the annualized Cost of Carry is positive at 3.59%. The Open Interest of Nifty Futures increased by 8.76%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty March month future closed with a premium of 24.15
Futures
Chg (%)
Chg (%)
points against a premium of 24.14 points to its spot. April
COALINDIA
21499900
60.82
290.30
(2.60)
month future is trading with a premium of 40.00 points.
HINDZINC
14505600
38.75
294.65
3.31
PCR-OI has increased from 0.87 to 1.14 levels. In call option,
CEATLTD
2617300
37.16
1271.50
9.62
we hardly saw any strike price adding relevant buildup.
However, good amount of unwinding was visible in 8900-
ICIL
4630500
33.10
186.45
6.24
9100 and 9500 call options. While, in put option, 8800-9200
MRF
61710
28.60
55663.95
6.48
strikes were quite active and they also added huge positions.
BATAINDIA
3691600
26.83
532.55
4.29
Highest open interest in current series is placed at 9200 call
and 8800 put options.
STAR
1936500
24.33
1135.00
(0.44)
RELCAPITAL
12942000
23.29
603.10
12.12
Stock that added longs last week are M&MFIN, IBULHSGFIN,
RELCAPITAL, CEATLTD, and TORNTPHARM. While, fresh
shorts were visible in JPASSOCIAT and COALINDIA. Liquid
counters with higher CoC are GAIL, BANKBARODA,
Weekly OI losers
ICICIBANK, COALINDIA and HDFCBANK. Stocks with
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
negative CoC are HINDZINC, ENGINERSIN, PFC,
UNIONBANK and INFRATEL.
JINDALSTEL
35316000
(17.08)
130.70
3.69
COLPAL
1124200
(16.61)
988.15
4.36
Last week, our benchmark index surpassed an important
psychological resistance of 9000 mark. Nifty rallied 2.38%
GAIL
33412000
(15.55)
376.85
(0.78)
with good amount of rise in open interest. FIIs continued their
CGPOWER
16044000
(14.62)
73.05
6.41
buying streak in cash market segment. While, in index futures
VEDL
40537000
(13.02)
265.25
6.21
mixed activity was seen; but, majority of the positions formed
were on long side. They also covered shorts formed in call
SAIL
48960000
(11.92)
63.60
7.25
options during start of March series and formed fresh longs in
SRTRANSFIN
2665800
(11.86)
1057.00
9.96
9200 call option. Thus, looking at the above data, we expect
market to continue its momentum in near term.
IBREALEST
33900000
(11.09)
82.65
4.95
Weekly change in OI
60,000
Call
Put
40,000
20,000
0
(20,000)
(40,000)
(60,000)
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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