Technical Picks | January 28, 2017
Market in strong momentum; corrections would be a buying opportunity
Sensex (27882) / Nifty (8641)
Trading for the week began on Monday with a marginal
Exhibit 1: Nifty Weekly chart
downside gap; but, the index rebounded higher from the
‘89 DEMA’ support and ended the session in the positive
territory. This was followed by a gap up opening on
Tuesday, wherein the index continued the upward
momentum and managed to close above its immediate
resistance of 8460. On Wednesday, the Nifty opened the
session with another upside gap in reaction to the positive
global cues. The momentum accelerated as the day
progressed and in the process, the index closed above the
8600 mark. After a holiday on Thursday on account of our
‘Republic Day’, the optimism continued for the concluding
session of the week and as a result, the Nifty posted a
Source: Company, Angel Research
whopping weekly gain of 3.50%. It is the biggest weekly
gains posted by the Nifty index after May 2016.
Exhibit 2: Nifty Daily chart
Key Moving Averages:
The ’89-day EMA’ and the ’89-week EMA’ for the
Sensex/Nifty are placed at
26999
/
8330 and
26535 / 8122 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ for the
Sensex/Nifty are placed at
27049
/
8376 and
27056 / 8349 levels, respectively.
Future outlook
It was a remarkable week for the traders as the Nifty index
posted gains on all the four trading sessions of the truncated
Source: Company, Angel Research
week. The robust market breadth indicates broad market
participation with all the sectoral indices ending the week in
During a strong momentum phase in the index, corrective
positive territory.
dips are generally bought into and thus, any correction in
the index due to the volatility would be a buying opportunity.
In our last week’s outlook, we had mentioned about the
Therefore, traders should trade with positive bias and avoid
probability of the Nifty inching towards 8510-8600 levels;
creating short positions in the corrective phases of uptrend.
but, the pace of the upmove during the week of the F&O
On the lower side, 8530 and 8460 are likely to act as strong
expiry was certainly remarkable and it exhilarated us.
support levels for the Nifty.
Technically, we witnessed a positive crossover of ‘5 EMA’
and ’20 EMA’ on weekly chart, indicating strength in the
index. Thus, the ongoing uptrend in the indices could
continue further towards 8737 and 8820 in near term.
However, citing the ‘Union Budget 2017-2018’ which is
scheduled to be announced on 1st February, there could be
increased volatility during the forthcoming week. Hence,
traders are advised to trade with proper risk management
strategies on their trading positions.
For Private Circulation Only
1
Technical Picks | January 28, 2017
Weekly Pivot Levels For Nifty Constituents
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
26,592
27,237
27,609
28,254
28,626
NIFTY
8,202
8,421
8,547
8,767
8,893
NIFTY BANK
18,337
19,022
19,409
20,095
20,481
ACC
1,285
1,358
1,399
1,472
1,513
ADANIPORTS
274
289
299
314
324
AMBUJACEM
211
222
228
239
244
ASIANPAINT
935
952
971
988
1,007
AUROPHARMA
668
691
704
727
740
AXISBANK
427
450
464
487
502
BAJAJ-AUTO
2,608
2,731
2,808
2,931
3,008
BANKBARODA
147
158
163
174
179
BHEL
121
130
136
146
151
BPCL
632
669
698
734
763
BHARTIARTL
296
310
319
333
342
INFRATEL
339
347
352
359
364
BOSCH
20,160
21,310
22,172
23,322
24,185
CIPLA
563
572
582
590
600
COALINDIA
296
307
314
325
331
DRREDDY
2,862
2,929
2,970
3,036
3,078
EICHERMOT
22,127
22,805
23,228
23,906
24,328
GAIL
445
464
479
497
512
GRASIM
828
880
911
963
994
HCLTECH
810
827
844
861
877
HDFCBANK
1,212
1,252
1,276
1,316
1,340
HDFC
1,181
1,277
1,328
1,424
1,475
HEROMOTOCO
2,955
3,086
3,181
3,311
3,406
HINDALCO
163
177
186
200
209
HINDUNILVR
824
840
858
874
892
ICICIBANK
248
260
267
279
286
IDEA
68
73
76
81
83
INDUSINDBK
1,188
1,221
1,245
1,278
1,302
INFY
877
910
934
966
991
ITC
248
253
260
265
272
KOTAKBANK
690
737
770
817
850
LT
1,342
1,391
1,431
1,479
1,519
LUPIN
1,411
1,452
1,491
1,531
1,570
M&M
1,140
1,196
1,233
1,289
1,325
MARUTI
5,545
5,731
5,829
6,014
6,113
NTPC
166
172
175
181
184
ONGC
193
199
203
209
214
POWERGRID
196
200
204
208
211
RELIANCE
1,004
1,014
1,024
1,034
1,043
SBIN
243
255
262
273
280
SUNPHARMA
626
633
640
647
654
TCS
2,213
2,285
2,332
2,404
2,451
TATAMTRDVR
320
331
338
349
356
TATAMOTORS
510
526
539
555
568
TATAPOWER
76
78
80
83
84
TATASTEEL
439
454
466
481
492
TECHM
454
461
467
474
480
ULTRACEMCO
3,361
3,524
3,644
3,806
3,927
WIPRO
451
458
471
478
491
YESBANK
1,314
1,356
1,389
1,431
1,464
ZEEL
449
473
492
516
535
Technical Research Team
For Private Circulation Only
2
Derivatives Review | January 28, 2017
Rollovers depicts optimistic stance ahead of ‘Union Budget’
Nifty spot closed at 8641.25 this week, against a close of 8349.35 last week. The Put-Call Ratio has decreased from 1.19 to 0.99
levels and the annualized Cost of Carry is positive at 4.67%. The Open Interest of Nifty Futures decreased by 8.80%.
Derivatives View
Weekly OI gainers
OI
OI
Price
Scrip
Price
Nifty current month future closed with a premium of 29.85
Futures
Chg (%)
Chg (%)
points against a premium of 37.95 points to its spot. Next
AJANTPHARM
619600
63.57
1736.45
(2.67)
month future is trading with a premium of 58.85 points.
IBREALEST
38930000
34.47
79.15
(2.64)
PCR-OI has decreased from 1.19 to 0.99 levels mainly due to
HDIL
31048000
22.16
62.75
3.63
unwinding in put options. Being start of new series the overall
build-up is quite scattered. In call options, 8700-9300 strikes
COLPAL
891100
20.32
883.55
(2.13)
were active, wherein 8900 and 9000 call options added good
INFY
21810000
15.85
944.95
(0.52)
amount of positions. While, 8300-8600 put options added
RELIANCE
22452500
13.89
1030.25
0.27
huge open interest. Highest OI in February series is placed at
9000 call and 8400 put options.
BHARTIARTL
34646000
12.31
323.50
0.83
Stock that added longs last week are CESC, CENTURYTEX,
ICICIBANK
62500000
9.85
273.65
3.67
ICICIBANK, HDIL and HEROMOTOCO. While, fresh shorts
were visible in AJANTPHARM, IBREALEST and COLPAL. Liquid
counters with higher CoC are SUNPHARMA, TATAMOTORS,
Weekly OI losers
ZEEL, EICHERMOT and CIPLA. Stocks with negative CoC are
OI
OI
Price
Scrip
Price
IOC, RECLTD, HINDPETRO, UNIONBANK and BPCL.
Futures
Chg (%)
Chg (%)
UNIONBANK
16336000
(36.24)
140.00
3.63
Last week, Nifty rallied from important support zone of
8300-8350 levels. We witnessed meaningful long formation in
PAGEIND
29600
(34.66)
14523.50
2.95
Index Futures which lead January expiry above 8600 mark.
LICHSGFIN
9135500
(34.38)
559.80
8.12
FIIs too added significant longs in Index Futures in recent up
move and as a result, their Long-Short ratio in Index future
ENGINERSIN
14098000
(33.55)
154.00
5.08
segment jumped from 67% to 82%. They rolled more than
PFC
15576000
(33.25)
136.80
4.55
75% of their longs which suggests they remain optimistic in
PNB
40964000
(29.97)
135.50
5.86
near term. At current juncture, the overall data indicates
continuation in the ongoing momentum, thus, traders are
CANBK
14496000
(29.82)
282.80
4.76
advised to avoid shorting in index and use declines as a
IDBI
20432000
(29.66)
79.60
6.99
buying opportunity.
Weekly change in OI
40,000
Call
Put
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
(5,000)
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]
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