Technical and Derivatives Review | August 24, 2018
Some pause but certainly not a reversal yet
Sensex (38252 ) / Nifty (11557)
Source: Trading View
Future outlook
Last Friday’s strong close and the global set up was just ideal for the Nifty to have a head-start for the week above the new
milestone of 11500. We did witness a strong buying interest right from the word go and as result, index added another eight-tenths
of a percent to the bull’s kitty on the same day. Although index went on to reach yet another milestone of 11600 during the week,
the remaining part was mainly a consolidation and hence, Nifty concluded around the same levels, which we saw on the opening day
of the week.
Barring first day, index did not have any encouraging movement and it was quite evident also after seeing recent relentless move.
Indicators have been on the overbought side since last few weeks and hence, some sort of pause was clearly overdue. But, we still
believe that it’s not a trend reversal yet and hence, would continue with our bullish stance on the market. Yes, the pace may not be
as same as it has been recently, but we expect buying to emerge at lower levels. As far as levels are concerned, 11500 followed by
11458 would be seen as a strong support zone; whereas on the higher side, 11600 - 11620 are the levels to watch out for.
During the week, lot of index balancing was seen and this is what generally happens after index clocking a strong rally in a short
span. Sectorally, the ‘Pharma’ still seems to be a preferred choice and although, it has run up quite a lot in the recent past, we still
believe there is long way to go. And hence, one should keep focusing on this space along with the ‘Metal’ universe, which has shown
some promising signs towards the fag end of the week. For the coming week, traders are advised to focus on individual pockets and
unless we see major reversal, do not afraid to stay long in the market.
For Private Circulation Only
1
Technical and Derivatives Review | August 24, 2018
11450-11650 is an immediate range
Nifty spot closed at 11557.10 this week, against a close of 11470.75 last week. The Put-Call Ratio has decreased from 1.66 to 1.63
and the annualized Cost of Carry is positive at 7.63%. The Open Interest of Nifty Futures increased by 8.38%.
Derivatives View
Nifty current month future closed with a premium of 14.50 points against a premium of 17.70 points to its spot. Next month future
is trading with a premium of 53.75 points.
As far as Nifty options activities for the week are concerned, we hardly saw any relevant open interest addition in call options;
however, some unwinding took place in 11400 and 11500 call options. On the flip side, 11500 and 11600 put options added massive
positions. At current juncture, 11600 call and 11000 followed by 11500 put options are attracting trader’s attention.
We started-off last week on a very strong note and rallied beyond 11600 mark; however decent profit booking attracted at the higher levels
to conclude the week tad above 11550. During the week, we saw addition of fresh longs in Nifty futures and long unwinding was seen in the
banking index. In Nifty options front, we saw decent writing in 11500 and 11600 put options. At current juncture, 11450-11500 is an
immediate base for index; whereas, 11650-11700 shall be the next levels to watch out for. Hence, any dips near the support zone shall be
an opportunity to add fresh longs.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Pric
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%
DIVISLAB
3528000
29.21
1306.85
10.83
HEXAWARE
9261000
172.34
427.95
(12.51)
BHEL
46185000
14.27
80.45
8.42
JETAIRWAYS
6502800
29.42
275.40
(9.02)
ONGC
44478750
4.54
174.65
6.69
MGL
5128200
327.78
845.40
(8.15)
PEL
2767830
11.93
2893.25
6.53
FEDERALBNK
77913000
38.03
81.75
(5.44)
RBLBANK
5410800
4.93
611.50
6.32
BPCL
13627800
46.21
358.35
(5.39)
Weekly change in OI
For Private Circulation Only
2
Technical and Derivatives Review | August 24, 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 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 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 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 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
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 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