Technical and Derivatives Review | October 27, 2017
New highs post Diwali; courtesy to PSBs
Sensex (33157) / Nifty (10323)
Source: Trading View
Future outlook
Merry days continued for our market immediately post the festive week. Barring negligible cut on Friday, the index kept marching
higher during the week and eventually reached yet another milestone of 10300. There have been various heroes in this year’s
relentless run; but, this week, undoubtedly all credit should go to laggards (PSU Banks) which turned into gold overnight by clocking
whopping gains of more than 30% in a single day.
Honestly speaking, it’s very difficult to digest such kind of unstoppable move; but eventually we have to accept that markets are
always superior and smarter. Looking at the daily chart, we can only project higher levels by taking a reciprocal retracement of the
recent down move. As per this tool, the 127% and 161% ratios are placed at 10310 and 10482, respectively. Hence, this range would
now be considered as immediate range in the upward direction. On the flipside, 10240 - 10123 is seen as immediate and key
support area for the Nifty.
At this juncture, traders are advised to not to take aggressive positions in index as we would see some kind profit taking coming in at
higher levels. Within this consolidation phase, one should rather keep focusing on individual stocks that are offering better
opportunities.
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Technical and Derivatives Review | October 27, 2017
Long rollovers by stronger hands hinting further upside
Nifty spot closed at 10323.05 this week, against a close of 10210.85 last week. The Put-Call Ratio has decreased to 1.38 from 1.62 levels
and the annualized Cost of Carry is positive at 3.51%. The Open Interest of Nifty Futures decreased by 17.84%, being an expiry week.
Derivatives View
Nifty current month future closed with a premium of 33.80 points against a premium of 56.90 points to its spot. Next month future is
trading with a premium of 69.20 points.
PCR-OI has declined from 1.62 to 1.38 on week on week basis. Being start of new series the overall build-up in Nifty options is quite
scattered, 10300- 10500 call and 10000-10300 put options were active and they also added good amount of fresh positions. For November
series, maximum open interest concentration is placed at 10500 followed by 10400 call option and for put option stands at 10000 followed
by 10300 strike.
October series was indeed a historical one for our markets as the benchmark index registered a fresh record high. We witnessed good
amount of long formation in index futures and these positions got rolled too. FIIs too contributed by rolling more than 60% of their longs to
November series. At present, their Index Futures ‘Long Short Ratio’ has surged back to 70%; indicating continuation of ongoing momentum.
Long Formation
Short Formation
OI
OI
Price
OI
OI
Price
Scrip
Price
Scrip
Price
Futures
Chg (%)
Chg (%)
Futures
Chg (%)
Chg (%)
MCDOWELL-N
2357750
13.97
3049.45
21.36
YESBANK
66624250
52.53
309.45
(14.97)
ENGINERSIN
13657000
16.90
181.80
20.96
HAVELLS
6242000
40.71
485.85
(11.25)
UBL
1432900
29.15
994.55
18.10
CANFINHOME
4136250
14.50
498.00
(8.33)
VGUARD
2475000
19.22
216.65
12.90
LICHSGFIN
11814000
41.39
617.25
(7.82)
JETAIRWAYS
5104800
6.08
529.00
9.31
HCLTECH
8661800
10.59
859.80
(7.23)
INDIACEM
26439000
2.93
196.90
8.28
IBULHSGFIN
7343600
23.15
1265.05
(6.97)
JSWENERGY
83104500
31.61
86.85
7.16
UJJIVAN
7020000
15.32
327.10
(5.86)
WOCKPHARMA
3436800
3.24
668.15
6.62
RCOM
115892000
3.92
16.05
(5.31)
Weekly change in OI
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2
Technical and Derivatives Review | October 27, 2017
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]
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