Technical Picks | February 25, 2017
Market eyeing all time high - base shifted higher to 8800
Sensex (28893) / Nifty (8940)
The Nifty index started trading for the week on a positive
Exhibit 1: Nifty Weekly chart
note taking cues from other emerging markets. The index
ended Monday's session at the highest point of the day by
confirming a decisive close beyond the 8850 mark. This
momentum continued for the remaining part of the index,
however, the move was gradual in nature towards the new
52-week high. Eventually, the Nifty index ended the
truncated week with gains of 1.34 percent over its previous
week's close. Amongst sectoral indices, the Nifty Energy
index posted a highest gain, which was up by 4.29 percent
during the week.
Key Moving Averages:
Source: Company, Angel Research
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at 27460 / 8491 and 26706 /
Exhibit 2: Nifty Daily chart
8182 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at 28217 / 8757 and 27545 /
8508 levels, respectively.
Future outlook
Our markets continued its winning streak for the fifth straight
week and has now closed tad below the 52-week high. The
weekly chart now looks extremely encouraging as we can
see a completion of ‘Bullish Cup and Handle’ pattern which
we have been anticipating since last month and a half. In
addition, the ‘RSI-Smoothened’ oscillator on weekly chart
Source: Company, Angel Research
has now surpassed the 70 mark by a small margin. This
development of the ‘RSI-Smoothened’ certainly augurs well
for our markets as we have witnessed good extended moves
We would reiterate that the trend is strong and hence, one
on several occasions in the past.
should look to ride the tide instead of wasting too much time
Now, as far as direction is concerned, we would continue
getting worried of an overbought condition of the market. It
with our optimistic stance and expect the index to hit a new
needs to be remembered that in a strong bull run such rules
all time high soon. For the forthcoming week, we expect an
of overbought territory are easily defied.
immediate range of 8982 - 8826 for the Nifty. In case of a
dip towards the lower end of the range, traders are advised
to initiate long positions for the targets beyond the 9000
mark.
For Private Circulation Only
1
Technical Picks | February 25, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
28,735
28,814
28,940
29,019
29,144
NIFTY
8,738
8,839
8,910
9,011
9,083
NIFTY BANK
20,247
20,562
20,787
21,102
21,326
ACC
1,398
1,418
1,448
1,468
1,498
ADANIPORTS
289
293
300
304
311
AMBUJACEM
224
228
235
239
245
ASIANPAINT
921
965
998
1,041
1,074
AUROPHARMA
641
654
676
688
710
AXISBANK
462
495
513
546
563
BAJAJ-AUTO
2,741
2,778
2,801
2,838
2,861
BANKBARODA
162
165
168
171
174
BHEL
149
151
154
157
160
BPCL
665
691
706
733
748
BHARTIARTL
334
350
375
392
417
INFRATEL
285
291
301
307
317
BOSCH
21,246
21,619
21,972
22,345
22,698
CIPLA
575
584
591
599
606
COALINDIA
307
317
325
335
343
DRREDDY
2,839
2,863
2,899
2,923
2,959
EICHERMOT
24,288
24,583
24,982
25,276
25,675
GAIL
499
508
520
529
540
GRASIM
982
1,004
1,040
1,062
1,099
HCLTECH
812
827
846
862
881
HDFCBANK
1,329
1,362
1,392
1,424
1,454
HDFC
1,356
1,371
1,393
1,408
1,430
HEROMOTOCO
3,032
3,105
3,152
3,224
3,272
HINDALCO
175
179
183
186
191
HINDUNILVR
835
847
859
871
884
ICICIBANK
277
281
285
288
292
IDEA
100
110
116
126
132
INDUSINDBK
1,311
1,326
1,337
1,352
1,363
INFY
964
987
1,009
1,031
1,053
ITC
257
262
265
269
272
KOTAKBANK
782
797
805
820
829
LT
1,449
1,468
1,487
1,506
1,525
LUPIN
1,426
1,438
1,457
1,469
1,488
M&M
1,278
1,291
1,308
1,321
1,338
MARUTI
5,813
5,922
6,021
6,130
6,230
NTPC
158
162
168
172
178
ONGC
189
193
196
199
202
POWERGRID
192
196
202
206
213
RELIANCE
1,002
1,092
1,157
1,248
1,313
SBIN
264
267
271
274
278
SUNPHARMA
651
663
675
686
698
TCS
2,324
2,403
2,479
2,558
2,634
TATAMTRDVR
269
275
281
287
293
TATAMOTORS
442
452
459
470
477
TATAPOWER
81
82
84
85
87
TATASTEEL
451
468
482
500
513
TECHM
487
495
505
514
524
ULTRACEMCO
3,642
3,714
3,760
3,832
3,877
WIPRO
463
474
482
494
501
YESBANK
1,408
1,427
1,443
1,462
1,478
ZEEL
501
510
521
530
542
Technical Research Team
For Private Circulation Only
2
Derivatives Review | February 25, 2017
FIIs rolled over majority of their longs
Nifty spot closed at 8939.50 this week, against a close of 8793.55 last week. The Put-Call Ratio has decreased from 1.12 to 0.98
levels and the annualized Cost of Carry is positive at 1.94%. The Open Interest of Nifty Futures decreased by 18.94%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty March month future closed with a premium of 16.65
Futures
Chg (%)
Chg (%)
points against a premium of 46.40 points to its spot. April
BEL
3560400
49.65
1513.70
(0.94)
month future is trading with a premium of 51.05 points.
DCBBANK
3870000
25.00
154.40
11.76
PCR-OI has decreased from 1.12 to 0.98 levels. Being start of
PFC
27198000
20.30
134.25
2.52
new series the overall build-up is quite scattered. In call
option, 9000-9400 strikes remained active along with good
IRB
9860000
16.89
232.50
1.71
amount of buildup. While, in put option, we saw decent open
COLPAL
1383200
15.96
899.15
(1.55)
interest addition in 8400-9000 strikes. Highest open interest is
KTKBANK
28607625
15.00
130.75
13.06
placed at 9000 call and 8500 put options.
EXIDEIND
16048000
11.01
213.90
1.52
Stock that added longs last week are DCBBANK, KTKBANK,
DRREDDY
2648600
10.41
2904.95
(0.51)
SOUTHBANK, ADANIPOWER and DHFL. While, fresh shorts
were visible in TORNTPOWER, NTPC, INFRATEL, ASHOKLEY
and HAVELLS. Liquid counters with higher CoC are
TATAPOWER, AUROPHARMA, DRREDDY, POWERGRID and
Weekly OI losers
LUPIN. Stocks with negative CoC are COALINDIA, RECLTD,
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
HINDPETRO, JUSTDIAL and BPCL.
TORNTPHARM
294000
(45.47)
1298.20
3.01
Nifty continued its momentum last week and closed above
CEATLTD
1681400
(36.18)
1166.30
2.96
8900 mark. FIIs formed mixed positions in index futures
throughout last week. However, looking at the rollover data,
M&M
3124500
(34.58)
1308.05
(0.72)
we believe majority of the long positions formed have been
VOLTAS
4490000
(34.07)
355.85
2.79
rolled to March series. As a result, the long short ratio soared
to 83%. We believe market may continue it’s up move and
JUSTDIAL
2628000
(32.41)
520.05
13.08
hence, traders are suggested to hold on to their longs.
L&TFH
16803000
(30.70)
116.85
(0.34)
EICHERMOT
144550
(30.54)
24939.30
(0.87)
BAJAJ-AUTO
1202000
(30.46)
2814.90
1.26
Weekly change in OI
For Private Circulation Only
3
Research Team Tel: 022 - 39357800
Website: www.angelbroking.com
For Technical Queries
E-mail: tec[email protected]
For Derivatives Queries
E-mail: [email protected]
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