August 19, 2017
Technical Picks | August 19, 2017
Crossing 10000 is daunting task now
Sensex (31525) / Nifty (9837)
Exhibit 1: Nifty Weekly chart
Our markets started the week on a positive note as
several high beta stocks showed a pullback move post
previous week's carnage. Post the holiday on the
Independence Day, the index continued its upmove in
next two trading sessions to retrace the recent corrective
move. On Thursday, we witnessed a sheer
underperformance within the heavyweight stocks,
especially the Nifty Bank index which resumed correction
from its
50% retracement resistance. Owing to the
pullback move during the week, the index managed to
post gains of 1.30 percent over its previous week's close.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Source: Company, Angel Research
Sensex/Nifty are placed at 31047 / 9616 and 28445 /
8759 levels, respectively.
Exhibit 2: Nifty Daily chart
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at 31846 / 9898 and 30910 /
9577 levels, respectively.
Future outlook
Despite being a truncated week, we witnessed a good
amount of price action in our markets. Undoubtedly, the
IT giant ‘Infy’ has been the centre of attraction for most of
the market participants. In fact, last two days of the week
gone by entirely belongs to this heavyweight counter.
Overall, the Nifty managed to recover some of its
previous week’s losses to reclaim the 9800 mark on a
Source: Company, Angel Research
weekly closing basis.
Technically speaking, the chart structure on medium time
This view would probably be supported by the banking
frame (weekly) has been distorted due to previous week’s
index as we would expect underperformance from this
corrective move. And the way ‘RSI-Smoothened’ has
space to continue in the forthcoming week as well. To
shaped up, we are of the opinion that the market would
summarize, the Nifty is expected to remain within a range
face strong resistance at higher levels and it would be a
of 9950 - 9620 for a while. Traders are advised not to
challenging task to surpass the 10000 mark. On the
trade aggressively in such kind of market. It would be a
downside, the Nifty is likely to slide towards the daily ’89
prudent approach to focus on individual stocks with a
EMA’, placed in the vicinity of 9670 - 9620.
proper exit strategy.
For Private Circulation Only
1
Technical Picks | August 19, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
30,948
31,237
31,587
31,875
32,226
NIFTY
9,650
9,744
9,846
9,939
10,041
NIFTY BANK
23,595
23,835
24,166
24,405
24,736
ACC
1,716
1,755
1,790
1,829
1,864
ADANIPORTS
369
378
392
400
414
AMBUJACEM
257
266
271
280
285
ASIANPAINT
1,102
1,121
1,142
1,161
1,183
AUROPHARMA
668
687
706
724
743
AXISBANK
479
484
494
500
509
BAJAJ-AUTO
2,740
2,776
2,822
2,858
2,904
BANKBARODA
131
139
146
154
160
BPCL
447
475
493
522
540
BHARTIARTL
397
409
416
428
434
INFRATEL
371
383
390
402
409
BOSCHLTD
20,843
21,439
22,196
22,792
23,549
CIPLA
529
547
570
589
612
COALINDIA
228
235
242
250
257
DRREDDY
1,927
1,955
1,997
2,025
2,067
EICHERMOT
29,125
30,318
30,959
32,152
32,792
GAIL
364
372
379
387
393
HCLTECH
837
857
871
890
904
HDFCBANK
1,715
1,734
1,762
1,780
1,808
HDFC
1,656
1,696
1,731
1,770
1,805
HEROMOTOCO
3,766
3,876
3,960
4,071
4,155
HINDALCO
214
222
231
239
247
HINDUNILVR
1,126
1,164
1,185
1,223
1,244
IBULHSGFIN
1,132
1,167
1,194
1,229
1,255
ICICIBANK
282
288
293
298
303
IOC
397
412
424
439
451
INDUSINDBK
1,563
1,592
1,623
1,652
1,683
INFY
801
862
946
1,007
1,091
ITC
265
274
279
287
292
KOTAKBANK
948
966
985
1,003
1,023
LT
1,098
1,114
1,136
1,152
1,174
LUPIN
909
924
949
963
989
M&M
1,334
1,352
1,366
1,384
1,398
MARUTI
7,406
7,503
7,611
7,708
7,816
NTPC
164
169
174
178
184
ONGC
158
160
161
162
164
POWERGRID
216
220
222
226
228
RELIANCE
1,527
1,551
1,574
1,599
1,622
SBIN
269
274
279
284
290
SUNPHARMA
407
438
464
496
522
TCS
2,421
2,467
2,509
2,555
2,596
TATAMTRDVR
217
222
229
233
240
TATAMOTORS
362
371
382
391
402
TATAPOWER
73
77
80
84
87
TATASTEEL
591
608
623
640
655
TECHM
385
407
422
444
458
ULTRACEMCO
3,833
3,923
3,981
4,072
4,130
VEDANTA
270
284
297
311
324
WIPRO
285
287
289
290
293
YESBANK
1,659
1,690
1,739
1,770
1,820
ZEEL
484
498
514
528
544
Technical Research Team
For Private Circulation Only
2
Derivatives Review | August 19, 2017
FIIs continue their selling spree, stay cautious
Nifty spot closed at 9837.40 this week, against a close of 9710.80 last week. The Put-Call Ratio has increased from 1.06 to 1.14
levels and the annualized Cost of Carry is positive at 4.85%. The Open Interest of Nifty Futures increased by 8.76%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 17.00
Futures
Chg (%)
Chg (%)
points against a premium of 30.25 points to its spot. Next
HEXAWARE
2856000
59.20
274.55
7.73
month future is trading with a premium of 44.30 points.
INFY
41559000
58.93
927.15
(6.23)
PCR-OI has increased from 1.06 to 1.14 levels on W-o-W
APOLLOHOSP
1586000
44.38
1073.05
(12.12)
basis. In call option, we could hardly trace any relevant
activity. On the flip side, we saw good amount of open interest
MFSL
4591000
40.10
598.45
(2.20)
addition in 9500, 9700 and 9800 put options, followed by
BEML
2321400
36.67
1890.35
21.63
unwinding in out the money strikes 9200 and 9400 strikes.
PCJEWELLER
5343000
35.03
373.70
25.66
Highest open interest in August series is now placed at 10000
call and 9500 put option.
JSWENERGY
72267000
31.55
64.15
(0.16)
Stock that added longs last week are PCJEWELLER, BEML,
HDFC
10927500
23.10
1741.10
2.48
TVSMOTOR, HEXAWARE and VEDL. While, fresh shorts were
visible in APOLLOHOSP, INFY, MFSL, BIOCON and
BOSCHLTD. Liquid counters with higher CoC are INFIBEAM,
Weekly OI losers
JSWSTEEL, RCOM, TATAGLOBAL and SAIL. Stocks with
OI
OI
Price
Scrip
Price
negative CoC are SINTEX, RBLBANK, TVSMOTOR, GSFC and
Futures
Chg (%)
Chg (%)
MARUTI.
MGL
726600
(19.37)
1041.20
5.18
Last week, the benchmark index rallied 1.16% with decent rise
CHENNPETRO
2070000
(18.34)
399.40
8.59
in open interest, hinting some fresh long formation. However,
NATIONALUM
10216000
(18.14)
70.25
12.40
FIIs refrained from participating in recent upmove as they
UBL
1039500
(16.57)
801.50
1.69
prefered to add short positions in the index futures. As a result,
their index futures Long Short Ratio further declined to 52%
INDIGO
1426200
(12.80)
1274.60
4.89
from 58% seen last week. INDIAVIX has also surged above
PAGEIND
28800
(12.59)
17118.30
7.89
the resistance level of 12.70-12.80 seen in last five series
TATAELXSI
1095600
(11.36)
1684.10
4.68
and we expect it to increase going ahead. Thus, we believe
Nifty has limited upside and hence, would advise short
INDIANB
3352000
(10.99)
304.95
8.89
term traders to buy 9800 puts of current series.
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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