April 22, 2017
Technical Picks | April 22, 2017
Market in a consolidation mode, 9020 remains to be a sheet anchor
Sensex (29365) / Nifty (9119)
A corrective move in the previous week was followed by a
Exhibit 1: Nifty Weekly chart
flat start on Monday. Subsequently, the index opened with
an upside gap to start the proceeding on Tuesday and
showed tremendous positivity in the first half of the day.
However, quite surprisingly, we witnessed a complete
nosedive in the latter half on the back of a massive sell off
seen across the broader market. The remaining part of the
week traded with a range bound activity and eventually, the
Nifty ended the week with a marginal cut of 0.34 percent
over its previous close.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Source: Company, Angel Research
Sensex/Nifty are placed at 28557 / 8837 and 27148 /
8334 levels, respectively.
Exhibit 2: Nifty Daily chart
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at 29471 / 9133 and 28580 /
8839 levels, respectively.
Future outlook
It was yet another week of consolidation for our markets
which was quite evident after seeing some pause in the
earlier week. At present, the Nifty is trading around its strong
support of ‘5 EMA’ (9121) on weekly chart, which coincides
with the ‘200 EMA’ (9102) on hourly chart. In addition, the
‘Gap’ area of 9020 - 8975 is not so far now, which we
believe is likely to provide a decent support in the near term.
Source: Company, Angel Research
Considering this cluster of various support zones, we do not
foresee any major downside in the market. Further, the ‘RSI’
The immediate resistance for the forthcoming week is seen
oscillator is approaching the 50 mark which is considered as
around 9160 - 9200. Looking at the ongoing price activity,
a strong support and looking at above technical evidences,
it seems to be a daunting task surpassing this hurdle in the
we may expect a ‘Positive Reversal’ quite soon in the market.
forthcoming week; but, we me see a strong surge once the
Having said that traders should take into consideration a
index manages to do so on a closing basis. At present, a
massive relentless rally of nearly 1300 points in last four
prudent strategy would be to follow a stock centric approach
months and hence, we are likely to see such in-between
and keep using such declines to form directional longs in the
consolidation or corrective phases in the market. It’s very
market.
difficult to make a time-wise prediction once the market
enters a consolidation phase; but, we would like to reiterate
that as far as higher degree direction is concerned, it is
strongly up and we are likely to see new highs in the months
to come.
For Private Circulation Only
1
Technical Picks | April 22, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
29,201
29,260
29,481
29,540
29,760
NIFTY
8,995
9,057
9,137
9,200
9,280
NIFTY BANK
21,067
21,309
21,628
21,870
22,189
ACC
1,450
1,473
1,497
1,520
1,544
ADANIPORTS
309
317
326
335
344
AMBUJACEM
230
235
242
247
254
ASIANPAINT
1,013
1,039
1,060
1,086
1,106
AUROPHARMA
601
617
646
663
692
AXISBANK
467
477
493
502
519
BAJAJ-AUTO
2,750
2,787
2,825
2,862
2,900
BANKBARODA
168
172
177
180
185
BPCL
696
706
722
732
748
BHARTIARTL
327
335
341
348
354
INFRATEL
321
337
347
363
372
BOSCHLTD
21,661
22,034
22,704
23,077
23,748
CIPLA
552
558
569
575
586
COALINDIA
266
272
281
287
296
DRREDDY
2,524
2,567
2,645
2,688
2,766
EICHERMOT
24,725
25,168
25,764
26,207
26,803
GAIL
365
382
397
414
429
GRASIM
1,019
1,075
1,113
1,168
1,206
HCLTECH
790
801
811
823
833
HDFCBANK
1,404
1,450
1,475
1,521
1,545
HDFC
1,442
1,475
1,503
1,536
1,565
HEROMOTOCO
3,134
3,168
3,214
3,249
3,294
HINDALCO
175
181
186
193
197
HINDUNILVR
891
899
911
919
932
IBULHSGFIN
919
955
976
1,012
1,033
ICICIBANK
251
260
276
285
301
IOC
407
416
427
436
448
INDUSINDBK
1,382
1,408
1,427
1,453
1,472
INFY
902
913
924
935
946
ITC
266
270
277
281
288
KOTAKBANK
851
866
882
896
912
LT
1,644
1,666
1,684
1,706
1,724
LUPIN
1,383
1,395
1,419
1,431
1,455
M&M
1,238
1,248
1,263
1,273
1,289
MARUTI
5,888
6,037
6,170
6,319
6,452
NTPC
155
161
164
170
173
ONGC
174
177
181
184
188
POWERGRID
192
199
206
213
221
RELIANCE
1,330
1,366
1,394
1,430
1,457
SBIN
268
275
286
293
304
SUNPHARMA
607
623
653
670
699
TCS
2,208
2,260
2,304
2,355
2,400
TATAMTRDVR
260
265
272
278
285
TATAMOTORS
427
434
445
452
463
TATAPOWER
81
83
85
86
88
TATASTEEL
424
437
456
469
488
TECHM
405
416
424
435
443
ULTRACEMCO
3,851
3,915
3,989
4,053
4,127
WIPRO
471
481
493
503
515
YESBANK
1,457
1,501
1,564
1,608
1,672
ZEEL
505
517
527
539
549
Technical Research Team
For Private Circulation Only
2
Derivatives Review | April 22, 2017
April series to expire on a muted note
Nifty spot closed at 9119.40 this week, against a close of 9150.80 last week. The Put-Call Ratio has decreased from 1.09 to 1.07
levels and the annualized Cost of Carry is positive at 4.35%. The Open Interest of Nifty Futures decreased by 2.39%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Nifty current month future closed with a premium of 7.60
Scrip
Price
Futures
Chg (%)
Chg (%)
points against a premium of 31.45 points to its spot. Next
DALMIABHA
1665900
403.90
2059.75
(3.03)
month future is trading with a premium of 31.8 points.
MFSL
8029000
84.53
632.65
(3.91)
PCR-OI has decreased from 1.09 to 1.07 levels. In call option,
INDIGO
1448400
45.51
1117.35
1.79
9100 and 9200 strikes added healthy positions. While in put
option, decent unwinding was seen in 9200 strike. Highest OI
AMBUJACEM
15070000
36.29
239.85
(2.50)
in April series has shifted from 9300 to 9200 call option and
SAIL
87996000
36.15
60.60
(2.57)
for put option, it remained intact at 9000 strike.
HINDZINC
17833600
34.06
273.60
(3.15)
Stock that added longs last week are SUNTV, GMRINFRA,
GODREJIND
2496000
30.61
523.90
(1.32)
ADANIENT, CESC and DLF. While, fresh shorts were visible in
RCOM
136356000
28.80
33.80
(5.59)
JINDALSTEL, SUNPHARMA, VEDL, ICICIBANK and YESBANK.
Liquid counters with higher CoC are GMRINFRA, BATAINDIA,
BHARATFIN, PEL and IFCI. Stocks with negative CoC are
Weekly OI losers
UJJIVAN, CANBK, PNB, UNIONBANK and MRF.
OI
OI
Price
Scrip
Price
Similar to the previous week, the penultimate week of the April
Futures
Chg (%)
Chg (%)
series traded slightly with a negative bias. But, this corrective
IBREALEST
17290000
(57.00)
143.60
34.77
move of around two percent from its all time highs is mainly
CAIRN
19488000
(27.37)
286.00
(3.31)
due to some unwinding. Further, we didn’t witness any major
change as far as Nifty’s open interest is concerned in the
INFIBEAM
1132400
(16.02)
1099.65
6.71
current series. In the week gone by, FII’s exited decent amount
HDIL
21848000
(11.36)
91.90
6.80
of their longs in index futures; resulted into a reduction of
RELCAPITAL
12648000
(11.25)
610.20
0.47
‘Long-Short Ratio’ from 73.20% to 67.60%. However, they
refrained to go short till now. In addition, they added good
DCBBANK
6102000
(11.20)
183.90
1.74
amount of long position in index put options. Considering the
JSWENERGY
61080000
(9.53)
63.95
(1.84)
overall derivative activity, the expiry week may remain under
MARUTI
2049450
(9.01)
6203.35
1.56
pressure or may remains a bit subdued. Thus, traders are
advised to remain light on positions.
Weekly change in OI
30,000
Call
Put
20,000
10,000
0
(10,000)
(20,000)
(30,000)
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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