Technical & Derivatives Report

August 17, 2020

Sensex (37877) / Nifty (11178) Exhibit 1: Nifty Daily Chart

During the last week, our markets started off higher owing to
favorable cues from the global peers. Subsequently, index slipped
into a consolidation mode as the real focus shifts to the mid and
small cap universe. For the first four straight sessions, Nifty gyrated
in a very slender range around 11300-11350. The similar price
behavior was witnessed on Friday as well during the first half.
However, all of a sudden, major global markets started correcting
sharply which had a rub off effect on our market as well. Nifty which
was merely vacillating in a range of 80-100 points throughout the
week, finally succumbed to the selling pressure and went on to test
the 11100 mark. Eventually, due to modest recovery towards the fag
end, Nifty concluded the week tad below 11200, marking more than
Throughout the week, our benchmark did nothing and the real
a percent loss on Friday.
action was seen in the broader market. As we all know, when mid
and small cap counters start moving, it generally creates a euphoric
Friday’s correction was no surprise to us as we have been
situation and this is exactly what we witnessed. Since the MIDCAP 50
consistently advocating caution in our intra-week commentary.
was approaching the ‘200-SMA’ on the weekly chart, we advised
Now, if we take a look at the daily chart, the ‘Head and Shoulder’
caution on Thursday and the index obliged to our view. To
pattern is clearly visible and this is what we mentioned in our
summarize, we would like to mention that even if the market goes
previous commentary. Friday’s low precisely coincides with the
through some corrective phase for some time, it will certainly not be
neckline level of this pattern. Hence, going ahead, a breach of 11100
as severe as the March one. Hence, a healthy correction would
would lead into an immediate correction towards 10975 – 10875.
probably provide better entry points for those who have missed the
This was overall a price-wise hypothesis on Nifty; but we would also
bus in the last few months.
like to highlight one time-wise observation as well. On the weekly
chart, if we apply ‘Fibonacci Time Series’ from March lows, the
Key Levels
current weekly candle ends 6th ‘Time Zone’ and is entering a new
Support 1 – 11100 Resistance 1 – 11270
one. Generally, such points are considered a potential reversal zone
Support 2 – 11000 Resistance 2 – 11350
and hence, one needs to be a bit cautious going forward as our
anticipation may probably turn into a reality below 11100.

Nifty Bank Outlook - (21679) Exhibit 2: Nifty Bank Daily Chart

On Friday, Bank Nifty witnessed an 'Open High' scenario and was
under pressure for the first half. The real sell-off was seen during
the second half as the bank index ended with deep cuts of 2.33%
at 21679. For the first half of the week gone by the bank index
made an attempt to show some outperformance however it failed
to cross 61.8% retracement of recent fall (23211 - 21031) and
witnessed a sharp selloff on Friday. As mentioned above for Nifty,
we can also observe and 'Head and Shoulder' pattern formation
in Bank Nifty with neckline placed around 21000. The said neckline
has acted as strong support for three times in the last two months
and will be a sacrosanct level going ahead. A breakdown below
the same could trigger further weakness towards 20060 and
19530 levels. Traders are henced advised to be watchful and avoid
aggressive bets. On the flip side, immediate resistance is now
placed at 22000 and 22350.

Key Levels
Support 1 – 21210 Resistance 1 – 22000
Support 2 – 21000 Resistance 2 – 22350

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Comments Nifty Vs OI
 The Nifty futures open interest has decreased by 0.62% (`000) Openinterest Nifty
Bank Nifty futures open interest has increased by 4.16% 11,800 11400

as market closed at 11178.40 levels. 11300

11,600
 The Nifty August future closed with a premium of 8.3
point against a premium of 16.9 point in last trading 11,400
11200

session. The September series closed at a premium of 11100

26.1 point. 11,200
11000
 The INDIA VIX has increased from 20.56 to 21.67
11,000
At the same time, the PCR-OI of Nifty decreased from 10900
1.33 to 1.31. 10,800
10800
 Few of the liquid counters where we have seen high cost
of carry are IDEA, ASHOKLEY, BANDHANBNK,
10,600 10700

TATAPOWER, AND CADILAHC. 10,400 10600

8/3 8/4 8/5 8/6 8/7 8/10 8/11 8/12 8/13 8/14

Views
OI Gainers
 The indices consolidated within a range for most part of
OI PRICE
the week, but it corrected in later half on Friday and SCRIP OI PRICE
CHG. (%) CHG. (%)
ended below 11200. EICHERMOT 319655 24.06 20143.70 -6.91
MRF 35200 11.39 61435.65 -3.91
 FIIs were net buyers in the cash market segment to the
CADILAHC 9880200 10.10 395.45 2.66
tune of Rs. 46 crores. In index futures, they bought
POWERGRID 14240000 8.04 175.40 -2.24
worth 413 crores with decrease in open interest
indicating short covering and long formation on Friday.
UJJIVAN 2802800 7.15 237.70 -0.02
LUPIN 8364000 6.75 1018.20 9.60

 While no significant build up was seen in Nifty, open UBL 1658300 6.00 963.65 -2.36

interest increased by about 14 percent in Bank Nifty. TATASTEEL 18035300 5.97 418.50 1.52

During the week, FII’s did not add any significant fresh
positions in index futures, however, they formed some
short positions in stock futures. On the other hand, OI Losers
retail clients formed bullish positions through index SCRIP OI
OI
PRICE
PRICE
CHG. (%) CHG. (%)
options segment. The options data hints a resistance
RAMCOCEM 1785000 -20.99 678.45 -4.34
now at 11300 for this week and support at 11000. The
ASHOKLEY 52578000 -18.41 61.60 1.14
build in put options in the coming weekly segment is
BALKRISIND 1905600 -16.77 1315.90 -5.39
low, but the monthly series has decent build up at
BHEL 62391000 -14.65 37.35 -4.09
11000 put. Traders are advised to keep a tab of the
INDIGO 3009500 -13.06 1139.15 -2.46
same as any unwinding in those positions could lead to
CENTURYTEX 2312800 -12.73 311.65 -0.80
some correction in the near term. Thus, one should
CONCOR 6791235 -11.88 379.60 0.30
avoid forming aggressive positions and trade with
GLENMARK 6511300 -11.20 475.70 2.63
proper risk management.

Historical Volatility Put-Call Ratio

SCRIP HV SCRIP PCR-OI PCR-VOL
LUPIN 48.13 NIFTY 1.31 1.03
EICHERMOT 55.72 BANKNIFTY 0.75 0.95
RAMCOCEM 43.23 RELIANCE 0.62 0.44
MRF 39.29 ICICIBANK 0.51 0.56
BOSCHLTD 51.15 INFY 0.62 0.48

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August 17, 2020

FII Statistics for August 14, 2020 Turnover on August 14, 2020
Open Interest
No. of Turnover Change
Detail Buy Sell Net Instrument
Value Change Contracts ( in Cr. ) (%)
Contracts
(in Cr.) (%)
INDEX
4576.38 4163.26 413.12 114511 8645.58 (2.23) Index Futures 5,00,780 33603.23 56.70
FUTURES
INDEX
184204.06 183984.19 219.87 607794 47853.96 13.87 Index Options 1,68,78,630 11,79,194.94 -63.24
OPTIONS
STOCK
16706.81 17087.30 (380.49) 1293177 89699.35 0.06 Stock Futures 9,67,506 69251.37 21.85
FUTURES
STOCK
7350.21 7337.83 12.38 92383 6424.55 3.11 Stock Options 14,51,557 1,09,744.21 30.05
OPTIONS

Total 212837.46 212572.58 264.88 2107865 152623.44 3.69 Total 1,97,98,473 13,91,793.75 -58.71

Nifty Spot = 11178.40

Bull-Call Spreads Bear-Put Spreads

Action Strike Price Risk Reward BEP Action Strike Price Risk Reward BEP

Buy 11200 154.65 Buy 11200 168.40

46.45 53.55 11246.45 42.75 57.25 11157.25
Sell 11300 108.20 Sell 11100 125.65

Buy 11200 154.65 Buy 11200 168.40

83.00 117.00 11283.00 74.70 125.30 11125.30
Sell 11400 71.65 Sell 11000 93.70

Buy 11300 108.20 Buy 11100 125.65

36.55 63.45 11336.55 31.95 68.05 11068.05
Sell 11000 93.70
Sell 11400 71.65

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

Nifty Put-Call Analysis

4000,000

Call Put
3500,000

3000,000

2500,000

2000,000

1500,000

1000,000

500,000

,0
10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000

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August 17, 2020

Daily Pivot Levels for Nifty Constituents

Scrips S2 S1 PIVOT R1 R2
ADANIPORTS 338 343 349 353 359
ASIANPAINT 1,775 1,789 1,809 1,823 1,844
AXISBANK 412 424 438 450 464
BAJAJ-AUTO 2,945 2,966 2,997 3,019 3,050
BAJFINANCE 3,219 3,275 3,362 3,418 3,505
BAJAJFINSV 6,069 6,158 6,279 6,368 6,489
BPCL 399 406 416 423 433
BHARTIARTL 514 521 532 539 550
INFRATEL 193 196 201 204 209
BRITANNIA 3,710 3,756 3,798 3,844 3,886
CIPLA 736 754 771 789 806
COALINDIA 127 129 132 134 137
DRREDDY 4,409 4,464 4,525 4,580 4,641
EICHERMOT 18,970 19,557 20,654 21,241 22,337
GAIL 93 95 97 98 100
GRASIM 614 622 631 638 647
HCLTECH 694 702 715 722 735
HDFCBANK 1,004 1,019 1,043 1,058 1,081
HDFC 575 581 592 598 609
HEROMOTOCO 1,746 1,769 1,796 1,819 1,847
HINDALCO 2,714 2,759 2,801 2,846 2,889
HINDUNILVR 176 181 185 189 194
ICICIBANK 2,134 2,154 2,185 2,205 2,236
IOC 345 353 362 371 380
INDUSINDBK 83 84 86 87 89
INFY 487 497 510 520 534
ITC 945 949 956 960 967
JSW STEEL 191 193 198 201 206
KOTAKBANK 254 260 263 269 273
LT 1,274 1,291 1,319 1,335 1,363
M&M 947 965 991 1,009 1,035
MARUTI 590 602 620 632 650
NESTLEIND 6,435 6,512 6,628 6,705 6,822
NTPC 16,159 16,257 16,403 16,501 16,647
ONGC 85 87 88 90 91
POWERGRID 76 76 78 78 80
RELIANCE 170 173 177 179 183
SHREECEM 2,052 2,083 2,120 2,151 2,188
SBIN 20,955 21,207 21,453 21,705 21,952
SUNPHARMA 189 193 198 202 208
TCS 516 524 530 538 544
TATAMOTORS 2,204 2,223 2,252 2,271 2,300
TATASTEEL 118 121 127 130 136
TECHM 398 408 420 430 441
TITAN 681 688 700 707 719
ULTRACEMCO 1,075 1,090 1,104 1,119 1,133
UPL 3,897 3,953 4,022 4,079 4,148
VEDANTA 472 479 488 495 504
WIPRO 273 275 278 280 283
ZEEL 153 157 162 166 172

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August 17, 2020

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

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

For Technical & Derivatives Queries E-mail: technicalresearch-cso@angelbroking.com

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