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Technical and Derivatives Review | December 21, 2019
For Private Circulation Only
Santa rally continues to clock record highs
Sensex (41682) / Nifty (12272)
Source: Trading View
Future outlook
Despite all the positive developments with respect to the US-China trade deal and the BREXIT our markets witnessed a tepid start for
the week gone by. However, the Monday’s session was only a breather as the bulls were in complete control thereon as the Nifty
continuously marked fresh new highs for the remaining part of the week. Nifty ended the week with gains of 1.53% at 12272.
For the last few weeks, we have been advocating for the targets of 12250-12300 and these targets have been met (high 12293). The
bias continues to remain positive and one can expect the extension of this rally towards 12400-12500 levels. Since now prices are
moving away from key averages we may see some in-between dips however one should avoid contra bets and should use such dips
as a buying opportunity. As far as levels are concerned the support base shifts higher towards 12200-12150 levels.
Now December ends are well known for midcap rallies some call it Santa Rally while some call it Mutual Fund NAV rally and in the
last few sessions we have already seen broader market participation supporting the rationale of December end rally. Thus we advise,
to focus on such mid-cap space which is likely to provide outperforming opportunities in the near term. In addition, PSU banking
stocks were back in action on Friday and are likely to continue with their positive momentum.
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Technical and Derivatives Review | December 21, 2019
For Private Circulation Only
Huge writing in Nifty puts led PCR-OI surging to 1.73
Nifty spot closed at 12271.60 this week, against a close of 12086.70 last week. The Put-Call Ratio has increased from 1.63 to 1.73.
The annualized Cost of Carry is positive at 9.02%. The Open Interest of Nifty Futures has increased by 7.11%.
Derivatives View
Nifty current month future closed with a premium of 18.20 points against a premium of 55.65 points to its spot. Next month future
is trading with a premium of 71.80 points.
As far as Nifty options activities for the week are concerned, we saw fresh build-up in 12300-12500 call and 12100-12300 put
options. Maximum open interest for the monthly series now stands at 12200 put and 12300 call option.
After many attempts, finally we saw index hitting fresh record highs last week. We began the week on a positive note and then the
upmove continued throughout the week to eventually conclude tad above 12250 mark. In F&O segment, fresh buying was seen in
both Nifty as well as BankNifty. Though, the banking index underperformed the benchmark but due to Friday’s recovery BankNifty
could manage to conclude with the gain of 0.86%. Put writers continued their writing streak in Nifty resulting base shifting higher
from 12000 to 12200. The overall development in the last week hints continuation of this ongoing rally towards 12400-12500 mark.
Hence, traders are advised using intraday decline to add-on fresh long positions for the upcoming truncated expiry week.
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg (%)
NIITTECH 701250 69.23 1589.15 6.74
MINDTREE 1369800 33.09 784.25 2.51
TATASTEEL 27127085 25.80 460.95 7.16
MFSL 9940100 23.30 535.35 6.17
NMDC 25512000 21.69 124.75 8.67
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg (%)
VOLTAS 4042000 39.96 651.95 (4.53)
AMARAJABAT 1778200 39.52 724.50 (2.76)
TORNTPHARM 361000 30.32 1840.00 (1.64)
SUNTV 3987000 26.75 450.95 (2.59)
EXIDEIND 12441800 26.27 178.50 (4.39)
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Technical and Derivatives Review | December 21, 2019
For Private Circulation Only
Research Team Tel: 022 - 39357600 Website: www.angelbroking.com
For Technical Queries E-mail: technicalresearch-cs[email protected]ngelbroking.com
For Derivatives Queries E-mail: derivatives.desk@angelbroking.com
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Technical
and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com
Ruchit Jain Technical Analyst [email protected]lbroking.com
Rajesh Bhosale Technical Analyst rajesh.bhos[email protected]m
Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com
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Technical and Derivatives Review | December 21, 2019
For Private Circulation Only
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