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Technical and Derivatives Review

| May 28, 2021

Markets at new record highs, RIL finally out of slumber

Sensex (51423) / Nifty (15436)

Source: Trading View

Future outlook

The week started on a flat note and as the week progressed, our markets managed to extend the lead. Since last couple of week, the

global uncertainty was not letting us move higher but the moment they started cooling off, our market took off and in the process,

the Nifty managed to surpass the psychological sturdy wall of 15000 with some authority. This week although there was no major

momentum seen in the index, the undertone was bullish and hence, slowly and steadily we marched towards record highs. In fact,

with Friday’s extended move, the Nifty went on to post new high on an intraday as well as closing basis.

Till last week, the entire world was so unsure where markets are headed and look now; we are at new record highs although the

move was not as swift as it generally should be. Until Thursday, primarily the banking and IT were the major contributors to the

move. But the sleeping lion RELIANCE finally seems to have awakened as it single-handedly led markets at new highs on the

concluding day of the week. Now as far as levels are concerned for Nifty, 15600 is the immediate point and above which there is no

major level visible before the yet another milestone of 16000. But it would be difficult to gauge whether the extended move from

hereon would be similar (slow and steady) in nature or it would have some faster legs in between. On the flipside, 15300 – 15150 –

15000 are to be considered as immediate supports.

Sectorally, one after another different themes are expected to play out well and it’s better to stick to stock specific approach;

because, the low hanging fruit is already gone and from hereon it would not be easy at all to do a stock picking. The banking has

been a bit inconsistent of late but we still believe that this heavyweight space has lot of potential and is likely to drive markets at

higher levels. Despite having highlighted lot of positive factors, we would advise traders not to get complacent. Hence, it’s better not

to get over leveraged and should follow strict stop losses for existing positions.

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Technical and Derivatives Review

| May 28, 2021

Stronger hands carry bullish bets at record highs

Nifty spot closed at 15435.65 this week, against a close of 15175.30 last week. The Put-Call Ratio has decreased from 1.38 to 1.32.

The annualized Cost of Carry is positive at 2.47%. The Open Interest of Nifty Futures decreased by 8.04%.

Derivatives View

Nifty current month future closed with a premium of 42.35 points against a premium of 56.45 points to its spot. Next month future

is trading at a premium of 93.60 points.

In options segment, the build-up is scattered between 15500-15800 calls and we saw decent build up in 15300-15000 puts.

Maximum build-up in the weekly series is placed in 16000 call and 15300 put options.

During the monthly expiry week, Nifty moved higher gradually and finally posted new record high on the concluding day of the

week. We witnessed long formation in Nifty and Bank Nifty during the May series and the rollover in both the indices are higher than

its average. This indicates that long positions in the indices are rolled to the June series. FII’s too preferred to roll over their long

positions in the index futures and thus majority of their positions are on the long side. In options segment, the open interest is

scattered from 15500-15800 calls while 15300-15400 puts have seen some open interest build up. The above data is positive and

hence we could see a continuation of the rally in indices in the coming week. As per the data, 15400-15300 is the immediate support

range and any declines should be used as an buying opportunity. On the flipside, we would keep a tab on how the call writers

position themselves in the early part of the week to assess the possible target/resistances for the week.

Weekly change in OI

Short Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

AMARAJABAT 9153000 52.75 746.95 (5.96)

CUMMINSIND

2787000

49.45

794.75

(4.81)

CHOLAFIN

10370000

37.58

546

.35

(6.23)

BEL

39983600

37.40

145.85

(7.34)

MANAPPURAM

29898000

17.39

156.55

(2.43)

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

PIDILITIND 2628500 19.80 2073.95 4.80

SUNTV

15393000

18.90

549.65

4.32

BANKBARODA

2145

19500

12.42

84.45

3.94

WIPRO

34534400

11.62

539.95

5.23

L&TFH

53365520

10.56

94.20

2.95

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Technical and Derivatives Review

| May 28, 2021

Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com

For Technical Queries E-mail: [email protected]

For Derivative Queries E-mail: [email protected]

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Technical and Derivatives Team:

Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com

Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com

Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com

Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com