1
For Private Circulation Only
Technical and Derivatives Review
| August 29, 2020
Banking single handedly drives Nifty towards 11700
Sensex (39467) / Nifty (11648)
Source: Trading View
Future outlook
We started off proceedings for the week on a positive note, owing to favourable global cues. During the remaining part of the
week, we witnessed a steady move in benchmark as there was lot of sectoral churn was being witnessed. In the process, Nifty
gradually marched towards the 11700 mark, marking highest close after February 26, 2020.
The ongoing rally across the globe is just extraordinary and we are not at all falling behind. Although we are not actively
participating in index specific trades since last a week (After 11350-11400) or so, the focus remained on individual stocks. Yes
but at the same time, we are advocating booking timely profits on trades as well and we would continue to do so. After a
certain time, it’s always better to let go some move and focus on money management. As far as levels are concerned, 11700-
11750 remains to be an immediate hurdle (coincides with multi-month upward sloping trend line); whereas on the flipside,
11600 followed by 11540 would be seen as key support levels. It may sound a bit repetitive but since we have approached yet
another cluster of resistance, we continue to advise some caution at higher levels, rather better to take one step at a time and
keep a close eye on key levels. It is also important to take a note that the short term pause would be seen below 11540-
11500.
Since last few days, the banking space started to outperform and during the week, although there was a gradual move seen in
Nifty, the banking index seems to have taken a giant leap of 10%. Apart from this, there was a decent stock specific action
seen throughout the week, but we could see some sectoral shift during the latter half. Hence, one needs to be selective when
it comes to stock picking going forward.
2
For Private Circulation Only
Technical and Derivatives Review
| August 29, 2020
FII’s carry long positions in index
Nifty spot closed at 11647.60 this week, against a close of 11371.60 last week. The Put-Call Ratio has increased from 1.54 to 1.64.
The annualized Cost of Carry is positive at 3.21%. The Open Interest of Nifty Futures has increased by 7.21%.
Derivatives View
Nifty current month future closed with a premium of 27.65 points against a premium of 17.60 points to its spot. Next month future
is trading at a premium of 41.45 points.
As far as Nifty options activities are concerned, 11600 and 12000 call options added some open interest whereas 11600-11300 put
options witnessed open interest addition. Maximum open interest for the weekly series is at 12000 call and 11500 put option.
Nifty rallied higher during the monthly expiry week due to formation of fresh long positions. Bank Nifty outperformed the
benchmark and gained about 10 percent during the week. The rollover in Nifty is at 79.82 percent versus its average of 78.82
percent whereas rollover in Bank Nifty is at 77.91 percent which is also in line with its average. FII’s formed long positions in the
index futures segment and they have rolled their long positions to the September series. Their ‘Long Short Ratio’ is now above 77
percent which is a good sign. The weekly options data hints support at 11600 and 11500 for the near term. Traders are advised to
trade with a positive bias and look for stock/sector specific buying opportunities from a near term perspective. If the index breaks
the 11500 mark, then one should reassess the data and trade accordingly.
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Pr
ice
Chg(%)
JINDALSTEL 21690000 20.94 217.50 (3.35)
MGL
1539600
14.20
972.40
(7.02)
NESTLEIND
440750
11.03
16190.15
(2.30)
TORNTPHARM
1655000
6.47
2724.80
(3.72)
BAJAJ
-
AUTO
1732750
6.34
3023.95
(1.24)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
BANKBARODA 72463400 56.80 51.85 6.47
IDEA
507500000
52.25
10.20
19.30
SRTRANSFIN
5197931
38.59
775.50
12.79
KOTAKBANK
12260000
26.14
1461.20
9.07
IBULHSGFIN
19381200
24.99
225.15
11.02
3
For Private Circulation Only
Technical and Derivatives Review
| August 29, 2020
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelbroking.com
DISCLAIMER
Angel Broking 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 and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
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 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 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 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 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.
Technical and Der
ivatives 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
