Technical & Derivatives Report - Angel Backoffice

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Technical & Derivatives Report

January 08, 2020

Sensex (40869) / Nifty (12053)

Post the sharp sell-off in Monday's session, our markets opened on a positive note yesterday as the US and other global markets were trading in the green. The index rallied higher but resisted around 12150 mark and then corrected towards the 12000 mark. A mild recovery in the end led to the index closing the session with gains of about half a percent. In Monday's trading session, the index had breached the immediate support of 12150 which now acted as a resistance in the pullback move yesterday. The index again witnessed some downmove from the resistance during the day. However, the overall market breadth was in favor of advances and hence, there were some stock specific momentum seen during the day. For near term, 12150-12200 is now seen as a resistance and the index need to surpass the same for a resumption of its uptrend. Until we see a breakout above the same, traders are advised to prefer a stock specific approach and trade with proper risk management. Monday's low of 11974 is seen as the immediate support which if breached, then we could see the correction extending towards 11850-11800 range.

Key Levels

Support 1 – 11974 Resistance 1 – 12120 Support 2 – 11850 Resistance 2 – 12150

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (31399) BankNifty too opened on a positive note yesterday and rallied sharply in the first hour of the trade. At one point, the index was trading with gains of over 600 points, but this pullback move witnessed selling pressure from the highs and it gave up all the gains before ending the session around 31400. The pullback move in yesterday's session witnessed selling pressure during the day as the index heavyweights failed to hold on to the morning gains. The immediate resistance for BankNifty is seen around 31200 and it needs to be surpassed soon for a resumption of the uptrend. Untill then, traders are advised to stay light on positions in stocks within this sector. On the flipside, the immediate supports for BankNifty are placed around 31000 and 30680.

Key Levels

Support 1 – 31000 Resistance 1 – 31850 Support 2 – 30680 Resistance 2 – 32000

Exhibit 2: Nifty Bank Daily Chart


Technical & Derivatives Report January 08, 2020

Nifty Vs OI

Views Yesterday Nifty started on a strong positive note and

in the first hour itself was up by more than 150 points. However the rub-off effect from the previous session pulled Index lower to eventually end with half a percent gains tad above 12050 levels.

FIIs were net sellers in the cash market segment to the tune of Rs. 682 crores. In index futures, they were net buyers worth Rs. 1392 crores fall in open interest by 2.31%.

The index rallied higher in the morning yesterday but we did not witness a continuation of the momentum. The index resisted around 12200 where there was good amount of writing seen in the call option in last two days. The options data indicates a stiff resistance around 12200 whereas support is seen around 12000 where there is highest open interest in put options. A move beyond this range of 12000-12200 along with unwinding in positions will lead to the next directional move in the index and hence, traders are advised to be vigilant on the same.

Comments The Nifty futures open interest has increased by 0.06%

Bank Nifty futures open interest has increased 4.71% as market closed at 12052.95 levels.

The Nifty January future closed with a premium of 53.75 points against a premium of 50.65 points in last trading session. The February series closed at a premium of 96.25 points.

The INDIA VIX has increased from 14.47 to 14.61. At the same time, the PCR-OI of Nifty has increased from 1.12 to 1.19.

Few of the liquid counters where we have seen high cost of carry are ICICIBANK, SAIL, CENTURYTEX, LUPIN and MGL.

OI Gainers

SCRIP OI OI

CHG. (%) PRICE PRICE

CHG. (%) BIOCON 12645400 12.48 284.15 -1.51

RBLBANK 15730500 8.07 344.00 1.86

GLENMARK 6731200 7.11 343.20 0.89

MINDTREE 1455200 6.94 846.30 1.94

MGL 1981200 6.62 1040.75 -0.76

HINDALCO 41513500 6.34 208.85 -0.05

NMDC 25944000 5.46 128.05 -0.70

INDUSINDBK 11036800 5.33 1461.65 -0.60

OI Losers

SCRIP OI OI

CHG. (%) PRICE

PRICE CHG. (%)

RAMCOCEM 1012800 -6.64 788.70 4.85

CANBK 14378000 -5.53 208.05 0.70

CADILAHC 6681400 -5.51 257.05 1.00

ASHOKLEY 54240000 -5.08 82.10 2.05

AMARAJABAT 1373600 -5.03 726.25 1.50

ADANIPORTS 32985000 -4.34 384.80 1.10

BALKRISIND 1767200 -3.66 967.50 0.45

INDIGO 3308700 -3.41 1364.05 2.80

Put-Call Ratio SCRIP PCR-OI PCR-VOL

NIFTY 1.19 0.94

BANKNIFTY 0.77 1.04

RELIANCE 0.70 0.55

ICICIBANK 0.52 0.65

INFY 0.61 0.81

Historical Volatility

SCRIP HV

RAMCOCEM 29.27

SHREECEM 32.04

PFC 42.21

HDFCBANK 20.40

ULTRACEMCO 30.60



Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.

Nifty Spot = 12052.95 Lot Size = 75

FII Statistics for January 07, 2020

Detail Buy Sell Net Open Interest

Contracts Value (in Cr.)

Change (%)

INDEX FUTURES 5490.03 4098.38 1391.65 140829 11882.70 (2.31)

INDEX OPTIONS 372765.96 371890.31 875.65 721941 59571.03 12.62

STOCK FUTURES 11635.93 11088.59 547.34 1467128 97110.26 0.09

STOCK OPTIONS 4327.28 4247.98 79.30 52160 3511.28 4.93

Total 394219.20 391325.26 2893.94 2382058 172075.27 3.54

Turnover on January 07, 2020

Instrument No. of Contracts

Turnover ( in Cr. )

Change (%)

INDEX FUTURES 411495 30722.10 11.58

INDEX OPTIONS 23795432 1708214.05 45.38

STOCK FUTURES 673263 45968.05 1.32

STOCK OPTIONS 592956 43424.45 -10.84

TOTAL 2,54,73,146 1828328.65 41.01

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 12000 218.85 64.75 35.25 12064.75

Sell 12100 154.10

Buy 12000 218.85 116.15 83.85 12116.15

Sell 12200 102.70

Buy 12100 154.10 51.40 48.60 12151.40

Sell 12200 102.70

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 12000 116.95 27.80 72.20 11972.20

Sell 11900 89.15

Buy 12000 116.95 50.05 149.95 11949.95

Sell 11800 66.90

Buy 11900 89.15 22.25 77.75 11877.75

Sell 11800 66.90

Nifty Put-Call Analysis



Daily Pivot Levels for Nifty Constituents

Scrips S2 S1 PIVOT R1 R2 ADANIPORTS 378 382 386 389 393 ASIANPAINT 1,696 1,710 1,725 1,740 1,755 AXISBANK 711 719 728 735 745 BAJAJ-AUTO 3,005 3,021 3,047 3,063 3,089 BAJFINANCE 3,936 3,972 4,032 4,068 4,128 BAJAJFINSV 8,942 9,019 9,142 9,219 9,342 BPCL 450 456 465 471 480 BHARTIARTL 436 440 448 453 460 INFRATEL 231 235 241 244 251 BRITANNIA 3,014 3,025 3,040 3,051 3,066 CIPLA 461 465 467 471 474 COALINDIA 202 204 206 208 210 DRREDDY 2,849 2,867 2,888 2,906 2,927 EICHERMOT 20,320 20,562 20,956 21,198 21,592 GAIL 123 124 125 126 127 GRASIM 724 733 745 754 765 HCLTECH 575 580 584 588 592 HDFCBANK 1,242 1,251 1,261 1,271 1,281 HDFC 2,359 2,387 2,408 2,436 2,457 HEROMOTOCO 2,299 2,323 2,362 2,386 2,425 HINDALCO 204 207 210 212 215 HINDUNILVR 1,910 1,915 1,923 1,928 1,936 ICICIBANK 513 518 527 532 541 IOC 122 123 125 127 129 INDUSINDBK 1,405 1,433 1,471 1,499 1,536 INFY 714 721 732 739 749 ITC 233 234 236 237 239 JSW STEEL 259 262 266 269 273 KOTAKBANK 1,641 1,656 1,665 1,680 1,690 LT 1,299 1,310 1,325 1,335 1,350 M&M 518 522 527 531 536 MARUTI 6,949 7,011 7,089 7,151 7,228 NESTLEIND 14,080 14,185 14,366 14,471 14,652 NTPC 118 119 120 122 123 ONGC 124 125 126 127 129 POWERGRID 189 190 192 194 196 RELIANCE 1,503 1,514 1,524 1,535 1,545 SBIN 309 314 320 325 332 SUNPHARMA 434 440 444 450 454 TCS 2,171 2,188 2,201 2,219 2,232 TATAMOTORS 178 182 185 189 193 TATASTEEL 467 472 478 483 489 TECHM 754 766 772 784 790 TITAN 1,140 1,150 1,162 1,172 1,184 ULTRACEMCO 4,130 4,186 4,220 4,276 4,310 UPL 573 584 594 605 615 VEDANTA 151 153 155 158 159 WIPRO 248 251 254 258 260 YESBANK 43 44 45 46 48 ZEEL 259 264 267 272 275



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