May 27, 2017
Technical Picks | May 27, 2017
9600 finally is a reality, better to take some money off the table
Sensex (31028) / Nifty (9595)
Exhibit 1: Nifty Monthly chart
Trading for the week began with nearly half a percent gain
on Monday owing to positive global cues. However, index
struggled at higher levels which resulted into some corrective
action to shave off all its opening gains. The index remained
under pressure for following couple of sessions too and in
the process, went on to breach the important support of
9372 by a small margin. However, the Bulls made a
remarkable comeback on Thursday; leading the May F&O
series to expire above the 9500 mark. The similar action
was seen on the last day of the week to conclude at the
highest point ever.
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at 29282 / 9070 and 27483 /
Source: Company, Angel Research
8447 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Exhibit 2: Nifty Weekly chart
Sensex/Nifty are placed at 30329 / 9403 and 29273 /
9067 levels, respectively.
Future outlook
Finally, 9600 is a reality now as we saw markets making a
strong recovery in the latter half of the week. Despite seeing
some correction in the early part, we maintained our bullish
stance on the market and advised traders to stay with the
larger degree up trend. Also, we have been quite vocal
about reaching the new milestone of 9600 in the recent
past, which has now been proved valid.
Going ahead, we can see continuation of this move; but
upside in the near term now seems limited. In last 4 - 5
months, we have not used a word ‘cautious’ even on a
single occasion. But, now, we would like to highlight few key
Source: Company, Angel Research
observations, which are 1) the 127% Reciprocal retracement
For the coming week, we expect some consolidation in the
of the recent ‘Bullish Flag’ pattern on daily chart is at 9642,
index with a positive bias and rather see more trading
2) The ‘Golden Ratio’ (161% Reciprocal retracement) of the
opportunities in individual stocks with a positive bias in order
corrective move from 8968.70 to 7893.80 is at 9624 and
to fetch higher returns. On the lower side, 9520 - 9440
most importantly, 3) The ‘Multi-year Price Extension’ (127%
would act as a strong support zone.
of 2252.75 to 6338.50 from 4531.15) is at 9720. All these
key ratios are converging in a band of 100 points i.e. 9620
- 9720 and hence, looking at these evidences, we would
advise traders to start taking some money off the table.
For Private Circulation Only
1
Technical Picks | May 27, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
29,957
30,493
30,783
31,319
31,610
NIFTY
9,251
9,423
9,514
9,686
9,777
NIFTY BANK
22,142
22,752
23,080
23,690
24,019
ACC
1,511
1,572
1,632
1,693
1,754
ADANIPORTS
315
332
345
361
374
AMBUJACEM
222
231
242
251
262
ASIANPAINT
1,052
1,092
1,121
1,161
1,189
AUROPHARMA
466
499
549
582
632
AXISBANK
488
500
506
518
524
BAJAJ-AUTO
2,602
2,708
2,856
2,962
3,110
BANKBARODA
165
172
182
189
198
BPCL
663
706
730
774
797
BHARTIARTL
352
363
372
382
391
INFRATEL
351
361
375
385
399
BOSCHLTD
22,163
22,885
23,482
24,203
24,801
CIPLA
425
457
512
544
600
COALINDIA
252
260
269
277
286
DRREDDY
2,214
2,314
2,498
2,598
2,782
EICHERMOT
26,390
27,371
28,002
28,983
29,614
GAIL
352
377
391
416
429
HCLTECH
828
844
856
871
883
HDFCBANK
1,537
1,581
1,607
1,651
1,677
HDFC
1,479
1,513
1,538
1,573
1,598
HEROMOTOCO
3,469
3,544
3,602
3,677
3,735
HINDALCO
177
188
195
206
214
HINDUNILVR
992
1,017
1,033
1,058
1,074
IBULHSGFIN
986
1,036
1,063
1,113
1,140
ICICIBANK
295
308
316
329
336
IOC
401
414
429
441
456
INDUSINDBK
1,336
1,407
1,446
1,517
1,556
INFY
931
964
982
1,014
1,032
ITC
282
296
305
318
327
KOTAKBANK
919
942
956
979
993
LT
1,633
1,710
1,755
1,832
1,876
LUPIN
953
1,033
1,180
1,260
1,407
M&M
1,281
1,311
1,330
1,360
1,379
MARUTI
6,551
6,808
6,946
7,203
7,342
NTPC
152
154
157
159
162
ONGC
168
172
177
181
185
POWERGRID
190
196
202
208
214
RELIANCE
1,276
1,307
1,326
1,356
1,375
SBIN
264
276
291
304
319
SUNPHARMA
505
536
595
626
685
TCS
2,448
2,513
2,575
2,641
2,703
TATAMTRDVR
251
269
279
297
308
TATAMOTORS
425
453
471
499
516
TATAPOWER
77
79
82
84
87
TATASTEEL
463
487
501
526
539
TECHM
398
414
424
439
449
ULTRACEMCO
3,955
4,055
4,230
4,330
4,505
VEDANTA
211
227
236
252
262
WIPRO
492
515
530
554
569
YESBANK
1,333
1,413
1,457
1,537
1,580
ZEEL
494
507
515
528
536
Technical Research Team
For Private Circulation Only
2
Derivatives Review | May 27, 2017
FIIs ‘Long Short Ratio’ rose to 85% in Index
Nifty spot closed at 9595.10 this week, against a close of 9427.90 last week. The Put-Call Ratio has decreased from 1.21 to 1.10
levels and the annualized Cost of Carry is negative at 2.16%. The Open Interest of Nifty Futures decreased by 10.19%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a discount of 19.30
Futures
Chg (%)
Chg (%)
points against a premium of 22.75 points to its spot. Next
BRITANNIA
384400
19.90
3437.30
(4.36)
month future is trading with a discount of 5.15 points.
BAJAJ-AUTO
1458000
18.56
2829.10
(5.14)
PCR-OI has decreased from 1.21 to 1.10 levels on week on
DISHTV
21728000
13.49
84.40
(14.92)
week basis. Being start of new series, the overall build-up is
quite scattered. In Nifty options, 9500-9800 call options
KSCL
3363000
12.16
573.85
6.37
added huge positions; while, in put option, significant open
RAYMOND
1392800
12.03
725.20
0.08
interest addition was visible in 9200-9500 strikes. At current
LUPIN
8797200
11.13
1118.25
(15.18)
juncture, highest OI in June series is placed 9600 call and
9400 put options.
VOLTAS
7946000
10.95
496.30
18.96
Stock that added longs last week are VOLTAS, KSCL,
SUNPHARMA
27809200
10.57
571.50
(12.40)
BALRAMCHIN, LT and BOSCHLTD. While, fresh shorts were
visible in LUPIN, DISHTV, CIPLA, SUNPHARMA and
TATAELXSI. Liquid counters with higher CoC are IFCI,
Weekly OI losers
CASTROLIND, PFC, CHOLAFIN and SINTEX. Stocks with
OI
OI
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
negative CoC are JUSTDIAL, INFIBEAM, DISHTV, RBLBANK
and ORIENTBANK.
SINTEX
12126750
(69.92)
30.45
(72.98)
Rollover in Nifty is higher than its quarterly average of
MRPL
2988000
(43.92)
135.25
1.27
69.36%, thus indicating traders have rolled their long
CEATLTD
1317400
(38.27)
1661.95
(3.20)
positions to the next series. However, the rollover in BankNifty
COLPAL
527800
(37.99)
1005.40
(1.33)
is on lower side as compared to its average. On Expiry, FIIs
have exited around 55% of their short positions in index future
GAIL
9798000
(32.88)
404.15
0.45
and added some fresh longs. Now, their ‘Long/Short Ratio’
INFIBEAM
1374800
(32.66)
944.75
(6.63)
has increased from 67% to 85.15% on week-on-week basis.
CHOLAFIN
160000
(31.77)
1018.40
(2.08)
Considering overall activity, we continue to maintain our
optimistic stance on the market and thus, would advice traders
TORNTPHARM
198000
(31.54)
1211.55
(6.04)
to prefer stock specific approach to fetch higher returns.
Weekly change in OI
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]
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 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
4