For Private Circulation Only

Technical and Derivatives Review

| February 19, 2021

Market snaps weekly winning streak, ends below 15000

Sensex (50890) / Nifty (14982)

Source: Trading View

Future outlook

After a brief pause in the previous week, our markets resumed their upward momentum on Monday on the back of global optimism

and encouraging macro numbers. The upward move continued on the following day as well to clock fresh record high of 15431.75.

However, at higher levels, most of the heavyweight counters started experiencing some profit booking, which extended as the week

progressed. In this process, the Nifty eventually sneaked below the psychological mark of 15000 on Friday to snap the weekly

winning streak.

For the major part of the week, the market has been experiencing some pressure at higher levels and this is what we have been

alluding to in our intra-week commentaries. Technically speaking, this week’s high precisely coincided around the crucial resistance

zone of 15380 – 15500 (which is the 161% ‘Golden Ratio’ of the entire fall from Jan’20 highs to March’20 lows). Hence, some sort of

pause around it was quite evident. Although, market has come off a bit in last three sessions, structurally there is no major damage

done on the charts. It should merely be considered as a profit booking as of now. Going ahead, we need to keep a close eye on how

Nifty behaves around its key support zone of 14750 – 14550. Only a sustainable breach of these crucial levels should be considered

as a short term trend reversal. On the flipside, 15100 – 15200 would be seen as immediate hurdles and any bounce towards this is

most likely to get sold into.

During the week, some of the larger private banking names cooled off a bit after recent marathon rally. The broader market too saw

some profit booking towards the fag end. The real action was seen in some of the smaller PSU banking stocks as well as few

underperforming marquee PSU counters from the energy space. The coming week is likely to be actioned packed; because markets

are placed interestingly going into the monthly expiry. Traders are advised to stay light and should avoid aggressive bets on the long

side.

For Private Circulation Only

Technical and Derivatives Review

| February 19, 2021

No meaningful change in F&O space

Nifty spot closed at 14981.75 this week, against a close of 15163.30 last week. The Put-Call Ratio has decreased from 1.38 to 1.19.

The annualized Cost of Carry is positive at 2.56%. The Open Interest of Nifty Futures has increased by 3.25%.

Derivatives View

Nifty current month future closed with a premium of 5.25 points against a discount of 1.85 points to its spot. Next month future is

trading at a premium of 43.65 points.

In options segment, the build-up was scattered between 15000-16000 call and 14500-15000 put options. Maximum open interest

for the monthly series is placed at 15500 call and 14500 put options.

We had a cheerful start of the week tad above 15250 mark. Follow-up buying interest led Nifty hitting fresh record high of 15431.75

on Tuesday. However, these gains were short lived as decent profit-booking was thereafter for to sneak below 14900 on Friday. In

F&O space, we witnessed some fresh selling in Nifty and long unwinding was seen in banking index. FIIs remained net buyers in

equities and their overall activity in index futures remained insignificant. Their index futures ‘Long Short Ratio’ is at 61%, which still

indicates they hold maximum longs in system. At present, 14900-15000 is an immediate support zone and follow-up activity may

dictate further trend.

Weekly change in OI

Short Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

AMARAJABAT 4480000 84.97 874.35 (10.90)

LUPIN 9589700 30.49 1021.90 (3.17)

GLENMARK 6037500 24.91 481.75 (4.64)

TCS 7860600 23.86 3080.20 (3.81)

PFC 35947600 20.89 124.60 (1.74)

Long Formation

Scrip

Futures

Chg (%)

Price

Pric

Chg(%)

APOLLOHOSP 1930500 32.95 2933.45 6.48

CHOLAFIN 6202500 26.20 528.40 12.38

TATACHEM 10446000 21.49 620.50 10.29

POWERGRID 19460000 18.31 232.70 9.40

HINDPETRO 40680900 17.06 243.95 8.59

For Private Circulation Only

Technical and Derivatives Review

| February 19, 2021

Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com

For Technical Queries E-mail: [email protected]

For Derivative Queries E-mail: [email protected]

DISCLAIMER

Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay

Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and

Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking

Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration

number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for

accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed

public offering of securities of the company covered by Analyst during the past twelve months.

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits

and risks of such an investment.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the

contrary view, if any.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable

sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this

document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way

responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot

testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be

regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in

connection with the use of this information.

Technical and Der

ivatives Team:

Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com

Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com

Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com

Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com