1
For Private Circulation Only
Technical and Derivatives Review |May 26, 2023
Nifty at 5-months high, reclaims 18500
Sensex (62502) / Nifty (18499)
Source: Tradingview.com
Future outlook
We had a promising start on Monday citing to favourable global cues. The move extended with the help of few heavyweights
chipping in to close above 18300 on the same day. However, on the subsequent sessions, the tentativeness was visible at higher
levels which once again pulled the benchmark index lower to retreat towards 18200 on the monthly expiry day. Fortunately, with
some late recovery on Thursday, we managed to recoup all early morning losses. This was followed by yet another muted start but
buying picked up around the mid-session which went on to accelerate during the latter half of the session to conclude the week at 5-
months high by reclaiming the 18500 mark.
Nifty has managed to reach the highest level for the current calendar year with the participation of recent laggard, RELIANCE and
importantly the IT space which is finally finding its mojo back after a slumber phase of nearly 15 months. The BFSI counters too
participated but not to the tune of they generally do during such rallies. Nevertheless, the banking index seems to be spending some
time before it surpasses all-time high to enter an uncharted territory. Now, as far as Nifty is concerned, we can see breakout
happening on daily time frame chart which is likely to unfold the next leg of the rally to head towards 18700 first and then if
momentum persists, the new high is imminent soon. On the flipside, 18350 followed by 18200 should be considered as immediate
supports. Ideally, in case of any blip in the forthcoming week, we are likely to see buying emerging from the mentioned demand
zone. Traders are advised to stick to optimistic stance and use intra-week dips to add bullish bets. In addition, the NIFTY MIDCAP50
index is on a roll as it has registered its new high on Friday. Hence, the midcap rally is likely to continue which should ideally provide
some mesmerizing moves in cash segment stocks.
2
For Private Circulation Only
Technical and Derivatives Review |May 26, 2023
Sho
rt
Form
at
ion
Long Short Ratio surged to 62 percent
Nifty spot closed at 18499.35 this week, against a close of 18203.40 last week. The Put-Call Ratio has increased from 1.01 to 1.37 on
Weekly basis. The annualized Cost of Carry is positive at 4.29%. The Open Interest of Nifty Futures decreased by 18.49%.
Derivatives View
Nifty current month’s future closed with a premium of 73.95 against a premium of 98.35 points to its spot in the previous week.
Next month’s future is trading at a premium of 140.80 points.
The Indian equity markets had seen a splendid rally in the last trading session of the week, wherein the benchmark index Nifty50
decisively breached the consolidation zone and tested the 18500 mark, procuring 1.63 percent of gains in the week. The June month
contract started on a very positive note with long addition in both key indices. On the derivatives front, FIIs have added new longs in
the Nifty future segment and even continued their buying spree in the cash market, showcasing a robust view. On the options front,
the put writers added a good amount of positions in 18400-18300 strikes, indicating an upward shift in the base. While on the higher
end, OI build-up is scattered from 18500-18800 call strikes on an immediate basis. The ‘Long Short Ratio’ has seen a significant surge
from 48% to 62% WoW. Considering the above data point, we expect the positive momentum to continue in the index and any dip
towards the support is likely to augur well for the bulls in the upcoming week.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
PAGEIND 181020 35.11 37367.65 (10.34)
ASHOKLEY 68785000 26.40 146.65 (5.17)
HDFC 24522000 21.50 2672.05 (1.57)
CHAMBLFERT 7383300 13.60 282.90 (2.41)
HDFCBANK 75182250 6.10 1623.40 (1.41)
Weekly change in OI
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
CROMPTON 19494300 37.42 274.10 7.89
APOLLOHOSP 1725375 14.60 4645.25 4.37
PERSISTENT 1321425 7.93 5092.20 4.52
LTIM 1531800 6.18 5034.75 4.61
NAUKRI 1575500 3.07 4221.30 10.11
3
For Private Circulation Only
Technical and Derivatives Review |May 26, 2023
Sameet Chavan Head Research – Technical & Derivatives sameet.chavan@angelone.in
Sneha Seth Senior Analyst – Technical & Derivatives sneha.seth@angelone.in
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelone.in
Osho Krishan Senior Analyst – Technical & Derivatives osho.krishan@angelone.in
Research Team Tel: 022 - 39357600 Website: www.angelone.in
For Technical Queries E-mail: technicalresearch-cso@angelone.in
For Derivative Queries E-mail: derivatives.desk@angelone.in
DISCLAIMER
Angel One 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 advisor with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel One
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.
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.
Angel or its associates or research analyst or his relative may have actual/beneficial ownership of 1% or more in the securities of the
subject company at the end of the month immediately preceding the date of publication of the research report. Neither Angel or its
associates nor Research Analysts or his relative has any material conflict of interest at the time of publication of research report.
Angel or its associates might have received any compensation from the companies mentioned in the report during the period
preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate
finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction in
the normal course of business. Angel or its associates did not receive any compensation or other benefits from the companies
mentioned in the report or third party in connection with the research report. Neither Angel nor its research analyst entity has been
engaged in market making activity for the subject company.
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
4
For Private Circulation Only
Technical and Derivatives Review |May 26, 2023
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 One 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 One 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 One 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 One 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. Angel or its associates or Research Analyst or his relative might have financial interest in
the subject company. Research analyst has not served as an officer, director or employee of the subject company.