Technical and Derivatives Review | June 22, 2018
All’s well that ends well
Sensex (35690 ) / Nifty (10822)
Source: Trading View
Future outlook
It’s been a week of global uncertainty and some consolidation around the crucial near term junction. Index remained under quite bit
of stress during the first couple of days; however, the bulls were not at all willing to give up as they held their ground successfully
and eventually managed to give a smart recovery towards the fag end of the week to reclaim the 10800 mark.
In the week gone by, there was one point when things looked extremely bleak for our market. We were literally on the verge of
giving a breakdown below the crucial support zone of 10700 - 10650. We remained optimistic despite this unfavorable development
and now we can certainly say, all’s well that ends well. Due to massive buying in the concluding hour on Friday, the Nifty managed to
give a breakout from small ‘Triangle’ pattern. Hence, no brainer, we continue to maintain our positive stance as long as the crucial
support zone of 10700 - 10650 is not violated convincingly. In the forthcoming week, the Nifty is likely to retest the higher band of
its recent trading range i.e. 10880 - 10920 and a sustainable move beyond this would extend the move in the near term.
At this juncture, it’s advisable to take one step at a time and keep a close track of all these mentioned levels. Since, we can see
bundle of stocks providing better trading opportunities, one should concentrate on such potential candidates that are likely to fetch
higher returns. As far as sectors are concerned, we did see some life coming back in the ‘Cement’ counters and hence, one can look
to accumulate marquee names within this basket at least for a decent relief rally. At the same time, we continue to like the
‘Pharmaceutical’ space. We advise not to expect any major correction as it is now in the mood of compensating for its recent
underperformance. Rather, one should look to grab heavyweight proposition within this basket on minor dips.
For Private Circulation Only
1
Technical and Derivatives Review | June 22, 2018
Writing in index puts, hints extension of ongoing move
Nifty spot closed at 10821.85 this week, against a close of 10817.70 week. The Put-Call Ratio has increased from 1.57 to 1.65 and the
annualized Cost of Carry is positive at 6.80%. The Open Interest of Nifty Futures increased by 0.63%.
Derivatives View
Nifty current month future closed with a premium of 12.10 points against a discount of 3.05 points to its spot. Next month future is
trading with a premium of 21.05 points.
As far as Nifty options activities for the week are concerned, except for some build-up in 11000 call we could hardly see any relevant
OI addition. Whereas, 10700 put option added good amount of positions. At current juncture, 11000 call and 10700 put options are
attracting trader’s attention.
The benchmark index corrected towards the support zone of 10700-10750 levels last week; but, strong buying emerged to bring index back
to 10800 mark. During the week, we hardly saw any relevant change in Nifty; however, banking index added decent long positions.
On Friday, we saw good amount of writing in 10700 and 10800 put options, which hints possibility of June series ending above 10800 mark.
Taking into consideration Friday’s upmove, we expect extension of this move towards 10900-10950 in the coming week. Thus, traders are
advised buying 10800 call options on dips for the expiry.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Pric
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%
JPASSOCIAT
218552000
11.99
17.40
6.42
HCC
47001000
8.44
12.40
(20.26)
BATAINDIA
2952400
16.80
833.90
8.38
SRF
1055000
116.19
1675.70
(12.28)
BPCL
13341600
25.84
426.00
11.80
BALRAMCHIN
14220500
7.29
66.65
(6.06)
INFIBEAM
53784000
10.75
158.45
(3.56)
PNB
80352500
10.50
82.20
(8.72)
KSCL
2400000
13.88
576.55
12.33
UPL
14384400
27.82
642.55
(8.38)
Weekly change in OI
2
Technical and Derivatives Review | June 22, 2018
Technical and Derivatives Team:
Sameet Chavan
Chief Analyst - Technical & Derivatives
[email protected]
Ruchit Jain
Technical Analyst
[email protected]
Rajesh Bhosale
Technical Analyst
[email protected]
Sneha Seth
Derivatives Analyst
[email protected]
Research Team Tel: 022 - 39357600
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources
believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for
general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any
loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt.
Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any
representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking
Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance,
or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or
in connection with the use of this information.
For Private Circulation Only
3