May 20, 2017
Technical Picks | May 20, 2017
One more attempt to inch towards 9600 seems due
Sensex (30465) / Nifty (9428)
Exhibit 1: Nifty Weekly chart
Trading for the week kick-started on a cheerful note as the
benchmark indices opened with an upside gap on Monday
and traded in a narrow range throughout the session. The
positive momentum continued on Tuesday too as the Nifty
managed to close above yet another milestone of 9500
mark for the first time ever. However, we witnessed a decent
correction in last couple of days mainly on the back of some
global uncertainties, which eventually pared down all gains.
As a result, the Nifty concluded the week by adding merely
0.29 percent over its previous close.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at 29125 / 9024 and 27402 /
8421 levels, respectively.
Source: Company, Angel Research
The ’20-day EMA’ and the ‘20-week EMA’ for the
Exhibit 2: Nifty Daily chart
Sensex/Nifty are placed at 30133 / 9362 and 29089 /
9011levels, respectively.
Future outlook
In the week gone by, we witnessed some decent price action
in our market as both counterparties (bulls and bears)
showed their presence to a great extent. First half of the
week was clearly dominated by optimistic traders as the Nifty
registered a yet another record high of 9532.60. However,
due to some political uncertainties in US, their markets
plunged on Wednesday and this somehow had a rub-off
effect on our market, leading to a decent correction towards
the fag end to conclude the week almost near its opening
point.
Technically speaking, due to last two day’s correction, we
Source: Company, Angel Research
can now see a formation of ‘Doji’ on weekly chart. An
occurrence of such pattern after strong rally indicates
In fact, we are of the opinion that if there is any decent
uncertainty in the market; but still we do not want to enter
correction has to happened, it’ll most probably happen only
this bandwagon at this juncture. Going ahead, 9400 - 9372
after touching the magical figure of 9600 (which is the 161%
would be seen as a crucial as well as strong support zone for
reciprocal retracement of a corrective move seen from
the index. As long as Nifty manages to defend this support,
8968.70 to 7893.80). Considering the recent activity in
we would continue with our optimistic stance on the market.
individual stocks, traders are advised not to take aggressive
positions in the market and one needs to be very selective
while picking up individual stocks.
For Private Circulation Only
1
Technical Picks | May 20, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
30,058
30,262
30,477
30,680
30,896
NIFTY
9,309
9,368
9,450
9,510
9,592
NIFTY BANK
22,442
22,606
22,792
22,956
23,142
ACC
1,618
1,647
1,693
1,722
1,769
ADANIPORTS
333
341
350
359
368
AMBUJACEM
242
247
255
260
268
ASIANPAINT
1,066
1,095
1,127
1,156
1,188
AUROPHARMA
572
584
605
617
638
AXISBANK
482
492
500
510
518
BAJAJ-AUTO
2,887
2,930
2,989
3,031
3,090
BANKBARODA
179
184
190
195
201
BPCL
677
690
713
726
749
BHARTIARTL
352
362
372
382
392
INFRATEL
354
366
381
394
409
BOSCHLTD
21,073
22,035
23,462
24,425
25,852
CIPLA
549
557
565
573
580
COALINDIA
269
273
278
282
287
DRREDDY
2,501
2,579
2,669
2,747
2,837
EICHERMOT
26,683
27,310
28,382
29,009
30,081
GAIL
384
393
404
413
424
GRASIM
1,053
1,087
1,134
1,167
1,214
HCLTECH
823
834
853
864
883
HDFCBANK
1,530
1,546
1,558
1,573
1,585
HDFC
1,479
1,500
1,536
1,557
1,593
HEROMOTOCO
3,389
3,481
3,582
3,673
3,775
HINDALCO
178
185
192
199
207
HINDUNILVR
954
981
1,002
1,029
1,050
IBULHSGFIN
986
1,013
1,051
1,078
1,116
ICICIBANK
291
299
306
314
321
IOC
422
429
440
446
457
INDUSINDBK
1,342
1,365
1,407
1,431
1,472
INFY
927
943
958
974
989
ITC
266
276
286
296
306
KOTAKBANK
905
921
951
968
998
LT
1,662
1,693
1,729
1,760
1,795
LUPIN
1,227
1,273
1,298
1,343
1,368
M&M
1,291
1,312
1,350
1,371
1,408
MARUTI
6,533
6,662
6,820
6,949
7,108
NTPC
155
157
159
162
164
ONGC
173
177
183
186
192
POWERGRID
200
203
207
210
215
RELIANCE
1,268
1,294
1,335
1,361
1,402
SBIN
289
299
307
316
325
SUNPHARMA
638
645
651
659
665
TCS
2,243
2,375
2,474
2,606
2,704
TATAMTRDVR
255
261
267
273
279
TATAMOTORS
420
431
442
454
464
TATAPOWER
80
82
84
86
88
TATASTEEL
414
452
475
513
537
TECHM
393
405
426
437
458
ULTRACEMCO
4,200
4,280
4,407
4,487
4,614
WIPRO
490
505
516
531
543
YESBANK
1,330
1,380
1,443
1,493
1,556
ZEEL
491
502
517
527
542
Technical Research Team
For Private Circulation Only
2
Derivatives Review | May 20, 2017
No sign of reversals; stay with the trend
Nifty spot closed at 9427.90 this week, against a close of 9400.90 last week. The Put-Call Ratio has decreased from 1.24 to 1.21
levels and the annualized Cost of Carry is positive at 11.52%. The Open Interest of Nifty Futures decreased by 0.95%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 17.85
Futures
Chg (%)
Chg (%)
points against a premium of 13.90 points to its spot. Next
CAPF
4977600
243.38
695.75
(8.62)
month future is trading with a premium of 22.75 points.
GLENMARK
9785300
78.28
660.55
(13.36)
PCR-OI has decreased from 1.24 to 1.21 levels on week on
VGUARD
3033000
51.57
203.20
(2.17)
week basis. In call option, 9600 strike added huge positions,
followed by some unwinding in 9300 to 9500 strikes. On the
MCX
1666500
48.99
995.50
(10.29)
other hand, good amount of open interest addition was visible
MRPL
5328000
42.65
133.55
2.97
in 9400 and 9500 put options; while decent unwinding was
FORTIS
16256700
30.98
204.00
(2.51)
seen in 9200 strike. Highest OI in May series is placed 9500
call and 9300 put options.
INFIBEAM
2041600
30.24
1011.80
3.02
Stock that added longs last week are TATASTEEL, PEL, TCS,
PNB
62601000
28.63
155.75
(7.65)
INFIBEAM and MRPL. While, fresh shorts were visible in
GLENMARK, MCX, CAPF, BHARATFIN and MCDOWELL-N.
Liquid counters with higher CoC are ICIL, IDBI, SUZLON,
Weekly OI losers
UJJIVAN and ADANIPOWER. Stocks with negative CoC are
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
CEATLTD, CASTROLIND, HCLTECH, JSWENERGY and
DCBBANK.
ORIENTBANK
17892000
(22.06)
157.55
(2.05)
After some volatile moves, the Nifty concluded the week on a
ASIANPAINT
2823600
(20.06)
1124.50
(0.86)
flat note. We are not seeing any major change in open interest
ICIL
10458000
(19.42)
194.70
(2.14)
activity of Nifty on week on week basis; however, some long
PVR
427200
(16.89)
1514.20
(1.10)
unwinding was seen in BankNifty. FIIs’ activity too remained
muted in index future segment. At the same time, they bought
ESCORTS
1350800
(16.23)
641.25
(1.09)
decent amount of Puts to hedge their existing long positions in
APOLLOTYRE
12687000
(15.71)
234.70
2.94
the system. Thus, from the derivatives data, we are unable to
TORNTPHARM
289200
(14.84)
1289.40
(1.12)
trace any major signs of reversal in market and hence, traders
are advised not to pre-empt ‘Top’ formation at current
AMARAJABAT
1635000
(14.39)
897.05
(3.19)
juncture and rather stay with the broader trend.
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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