For Private Circulation Only
Technical and Derivatives Review | December 27, 2019
Resumes uptrend after a small breather
Sensex (41575) / Nifty (12246)
Source: Trading View
Future outlook
Last week’s close suggested some breather or a dull period in our market and in-line with this; we had a sluggish opening for the week on
Monday. This being a ‘Christmas’ week, generally we tend to see no major action in the market. First couple of sessions gave full justice to
this historical notion. But last couple of sessions were completely action packed and was literally a feast for traders. On the expiry day,
market corrected fiercely to conclude the final series of the calendar year below 12200; but the pessimism did not last too long. On Friday,
we had a gap up opening by a fair margin and the bulls took complete charge from thereon. The buying momentum augmented as the day
progressed and eventually, the Nifty managed to snap major portion of weekly losses.
In last couple of weeks, Nifty gave a relentless move of nearly 500 points and hence, at the end of last week, the prices looked a bit
exhausted. It required some sort of correction either in the form of price wise or a time wise correction. Due to intra week decline, the
index is back to the equilibrium and is all set to enter an uncharted territory now. We continue with our optimistic stance on the market
and expect the Nifty to head towards our recent targets of 12400 - 12500 soon. On the downside, 12150 - 12100 has now become a
sacrosanct support zone for the index.
The major characteristic of Friday’s rally has been the overall market breadth, which was very much in favour of the bulls. We had a good
broad based rally in the market where few marquee large cap names joined hands with quality mid cap counters. It’s a sign of healthy Bull
Run, which we believe is likely to continue. Also, the way midcap index is shaped up now, all focus would now be on the broader end of the
spectrum. The Santa rally in mid cap space is likely to accelerate now. Thus, traders are advised to find such potential candidates which are
either on the verge of a breakout or rebounding from their supports.
We take this opportunity to wish you all a Merry Christmas and Happy new year in advance. Also, we hope the coming year to be as
prosperous as last three months have been for our market.
For Private Circulation Only
Technical and Derivatives Review | December 27, 2019
12100-12150 to act as a sheet anchor now
Nifty spot closed at 12245.80 this week, against a close of 12271.60 last week. The Put-Call Ratio has decreased from 1.73 to 1.46.
The annualized Cost of Carry is positive at 36.49%. The Open Interest of Nifty Futures has decreased by 19.46%.
Derivatives View
Nifty current month future closed with a premium of 73.45 points against a premium of 71.80 points to its spot. Next month future
is trading with a premium of 110.20 points.
As far as Nifty options activities for the week are concerned, being start of new series the overall build-up was scattered between
12200-12700 call and 11500-12200 put options. Maximum open interest for the monthly series now stands at 12000 put and 12500
call option.
We began the week on a flat note in the absence of any major trigger in the global market. However, decent profit booking was seen
in the last two sessions of the expiry that led a dip towards the support zone of 12100-12150. On Friday, we had a cheerful start and
follow-up buying was witnessed as the day progressed to eventually conclude the week in a positive trajectory. Rollover in Nifty
stood at 70.44%; which is on the lower side as compared to the three-month average of 78.06%. In case of banking index, the
rollover figure (78.46%) is above the average of 70.87%. Thus, indicating longs formed in last series are still intact in this space. We
witnessed good amount of writing in 12100-12200 puts on Friday, shifting the base higher. Hence, we maintain our optimistic stance
on market any soon expect a rally beyond 12300 mark.
Long Formation
Chg (%)
Chg (%)
TATACHEM 2860200 8.65 672.70 3.14
PNB 107111500 3.75 65.85 1.54
SAIL 90290700 2.95 42.45 1.80
BANKBARODA 78273000 2.00 105.00 4.01
BAJAJFINSV 1473500 1.61 9506.45 2.13
Weekly change in OI
Short Formation
Chg (%)
Chg (%)
YESBANK 252199200 12.15 45.00 (11.85)
RELIANCE 54254500 8.63 1552.25 (3.17)
BHEL 76076000 4.99 43.50 (3.33)
ADANIPORTS 36850000 3.70 366.60 (1.82)
COLPAL 2356900 3.19 1465.10 (1.09)
For Private Circulation Only
Technical and Derivatives Review | December 27, 2019
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.c[email protected]ngelbroking.com
Ruchit Jain Technical Analyst ruchit.jai[email protected]broking.com
Rajesh Bhosale Technical Analyst rajesh.bhosl[email protected]ngelbroking.com
Sneha Seth Derivatives Analyst sneha.s[email protected]ngelbroking.com