1
For Private Circulation Only
Technical
and Derivatives Review
| April 30, 2021
Tail end correction spills water on bulls’ comeback
Sensex (48782) / Nifty (14631)
Source: Trading View
Future outlook
Trading for the week started on a positive note on Monday and as the week progressed, the recovery mode started picking up some
pace. Before anyone could realize, Nifty and BANKNIFTY were back to 15000 and 34000, respectively. Everything looked hunky dory
and appeared as if we are headed higher now. But market participants became a bit tentative around these psychological levels
which eventually resulted in a sharp decline on Friday. Despite this, the week ended with more than 2% gains for the Nifty.
The market seems to be in a deceptive mode as it first caught bears on the wrong foot after surpassing 14750 and now with the tail
end correction, the bulls are completely clueless and unsure of the next move. Such market is literally a nightmare for the swing
traders as market is unable to see any kind of follow up move. Hence looking at all this, it is quite clear that the benchmark is
trapped in a wider range of 1000 points i.e. 15000 14150 and till the time we do not see sustainable breakout on either side, we
would like to remain neutral on market and would like to consider each day as a new day. Within this consolidation, the inclination
would slightly be on the positive side as we are seeing a strong support zone of 14550 14450. Here the banking index holds some
significance as long as 32000 remain intact. For Nifty, the immediate resistances are to be seen at 14730 – 14860.
Let see how the action unfolds as we step into the May month. There is a famous old saying in market ‘Sell in May and Go away’. In
the recent years, the market has proved it incorrect and participants would certainly be hoping for the same. The only critical
observation here is the overall placement of the NIFTY MIDCAP50’ index. Recently, we had mentioned about the breakdown from
the ‘Head and Shoulder’ pattern on daily chart and despite the recent recovery, we can see it facing resistance around the
confluence point of the neckline and the ‘Falling trend Line’ levels of 6850 6900. Till the time these levels are not surpassed, avoid
aggressive bets and focus only on individual themes in the market.
2
For Private Circulation Only
Technical
and Derivatives Review
| April 30, 2021
Mixed activity hints uncertainty, stay light
Nifty spot closed at 14631.10 this week, against a close of 14341.35 last week. The Put-Call Ratio has decreased from 1.27 to 1.07.
The annualized Cost of Carry is positive at 5.52%. The Open Interest of Nifty Futures decreased by 12.60%.
Derivatives View
Nifty current month future closed with a premium of 59.70 points against a premium of 52.60 points to its spot. Next month future
is trading at a premium of 98.65 points.
In options segment, we witnessed decent open interest addition in 15000-15200 calls; while, 14500-14800 puts too added fresh
open interest. Maximum build-up in the monthly series in nearby strikes is placed in 15000 call and 14000 put options.
During the week, we saw decent buying interest to surpass the first hurdle of 14700-14750 and then strong opening on the expiry
day led extension of rally to almost touch 15050. However, Nifty testing 15000 mark was just a formality as we saw sharp profit
booking on the same day. The profit booking got extended on Friday’s session to drag index towards 14600 mark. Eventually, the
Nifty concluded the week with the gains of two percent. In F&O space, we saw addition of decent longs in upmove and rollover data
hints few of them have been rolled over too. Stronger hands exited decent shorts and preferred rolling over bullish bets in May
series. On Friday, we saw addition of fresh shorts in Nifty and in case of BankNifty, decent profit booking along with some short
addition was observed. Considering Friday’s development, things look unclear at the moment and hence, would advise traders to
wait for follow-up activity in the coming week before initiating any directional bets.
Weekly change in OI
Short Formation
Scrip
Futures
OI
Chg (%)
Price
Price
Chg(%)
BRITANNIA 2120800 10.75 3647.15 (1.61)
M&M
9368800
5.12
779.85
(5.28)
GAIL
51270500
6.41
129.75
(7.49)
DABUR
9501250
11.62
559.50
(2.70)
HINDUNILVR
6759600
8.37
2312.45
(6.10)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
CADILAHC 17584600 20.63 572.30 8.10
AARTIIND
546975
9.72
1451.60
1.97
PVR
2866908
29.39
1118.40
7.08
HDFCLIFE
10725000
23.17
688.75
(0.64)
SBILIFE
5103750
8.65
923.20
0.90
3
For Private Circulation Only
Technical
and Derivatives Review
| April 30, 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]
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 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