Technical and Derivatives Weekly Review - June 19, 2023

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Technical and Derivatives Review |June 19, 2023

Nifty registers highest ever close, now record high is imminent

Sensex (63385) / Nifty (18826)

Source: Tradingview.com

Future outlook

Our domestic markets started the week on a promising note on Monday. However, on the same day itself, we had a muted price

action with bulls remaining at the dominant position. This was followed by a good traction mainly in Nifty, courtesy to marquee

names like, RELIANCE and few Metal counters. In this process, Nifty managed to reclaim 18750 on a closing basis. However, on

Thursday, our market reacted quite unexpectedly post the FED policy, which practically was considered a non-event globally. Maybe

it coincided with the (weekly) expiry factor as markets corrected quite sharply, especially the BANKNIFTY and FINNIFTY. Fortunately,

things seem to have stabilized on Friday as we witnessed a sustained buying throughout the session across the board. Eventually,

the Nifty managed to register a highest close ever above the 18800 mark.

It was certainly an action-packed week for our markets and by far, we have outperformed the US bourses in recent times. Amid the

ambiguity, the Nifty is now knocking on the door of clocking fresh record highs and even reaching yet another milestone of 19000.

Considering a strong close above 18800 and with recent laggard, BFSI space participating in the move on Friday, we will not be

surprised to see this achievement in the first half of forthcoming week. On the flipside, the base has shifted higher towards 18600 –

18550, before which 18700 is to be considered as an immediate support. We continue to remain sanguine and would reiterate on

using intra-week decline to add bullish bets in the market. Meanwhile, all eyes would be on global market as they play a vital role in

next leg of the rally. Also, it’s important for high beta financial space to start showing its buoyant nature. If things fall in place as per

the expectations, we are likely to have merry run in the near term.

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Technical and Derivatives Review |June 19, 2023

Sho

Form

ion

F&O data showing continuation of ongoing rally

Nifty spot closed at 18826 this week, against a close of 18563.40 last week. The Put-Call Ratio has increased from 0.84 to 1.29 on

Weekly basis. The annualized Cost of Carry is positive at 10.91%. The Open Interest of Nifty Futures increased by 7.66%.

Derivatives View

Nifty current month’s future closed with a premium of 73.15 against a premium of 68.15 points to its spot in the previous week.

Next month’s future is trading at a premium of 151.60 points.

It was indeed a week full of actions, we saw index gradually inching higher until a sharp selling on the weekly expiry session.

However, smart buying emerged on the final day of the week to mark highest close ever. On the derivatives front, addition of fresh

longs was witnessed in Nifty during the week, whereas banking index hardly added any relevant build-up. On the options front,

18800 put strike added meaningful fresh positions. On the flip side, the build-up remained scattered between 18900-19200 call

strikes wherein 19000 strike now holds highest open interest concentration. Stronger hands continue buying in equities and added

fresh longs in index futures segment. Hence, the ‘Long Short Ratio’ surged to 55% from 46% WoW Considering the above

development, we expect continuation of ongoing rally towards the magical mark of 19000.

Scrip

Futures

Chg (%)

Price

Chg(%)

WIPRO 45973500 45.14 382.35 (2.97)

FEDERALBNK 105905000 25.34 124.30 (1.00)

SRF 3636000 20.55 2403.15 (1.32)

SBIN 75832500 14.46 573.60 (1.41)

INDIGO 3708300 11.51 2437.10 (1.46)

Weekly change in OI

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

OFSS 413800 48.85 3890.95 9.61

METROPOLIS 1300000 36.15 1356.50 5.50

TATACOMM 4180000 34.62 1615.55 11.08

DIXON 1212875 29.98 4500.65 11.12

LALPATHLAB 999200 29.97 2037.35 4.25

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Technical and Derivatives Review |June 19, 2023

Sameet Chavan Head Research – Technical & Derivatives sameet.chavan@angelone.in

Sneha Seth Senior Analyst – Technical & Derivatives sneha.seth@angelone.in

Rajesh Bhosale Analyst – Technical rajesh.bhosle@angelone.in

Osho Krishan Senior Analyst – Technical & Derivatives osho.krishan@angelone.in

Hitesh Rathi Analyst – Technical & Derivatives hitesh.rathi@angelone.in

Research Team Tel: 022 - 39357600 Website: www.angelone.in

For Technical Queries E-mail: technicalresearch-cso@angelone.in

For Derivative Queries E-mail: derivatives.desk@angelone.in

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Technical and Derivatives Review |June 19, 2023

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