Technical & Derivatives Report
August 02, 2016
Sensex (28003) / Nifty (8637)
Exhibit 1: Nifty Daily Chart
Trading for the week began slightly higher owing to mix cues
from the global bourses. Subsequently, we witness a continuation
of the ongoing optimism and within no time the index reached yet
another milestone of 8700. Things were looking good; but,
suddenly we saw sharp decline in the market mainly inflicted by
two index heavyweights, ICICI Bank and L&T. Due to modest
recovery in the last hour of the trade trimmed some losses to close
convincingly above the 8600 mark.
In our earlier report, we had advised on avoiding aggressive
positions in the market. In line with our view, the index traded
with higher volatility and surprised everyone my correcting sharply
from days high. In the coming trading session, we expect the Nifty
to face a resistance around 8675 - 8710 levels; whereas on the
downside, 8572 would be seen as immediate support levels.
Although, the higher degree trend remains positive, we now
expect some range bound action with enhanced volatility. It’s
advisable to trade with proper exit strategy.
Key Levels
Support 1 - 8572
Resistance 1 - 8675
Support 2 - 8540
Resistance 2 - 8710
Nifty Bank Outlook - (18741)
Exhibit 2: Nifty Bank Daily Chart
Yesterday, in line with benchmark index, we saw Bank Nifty
adding some gains to the bull's kitty. But, suddenly, the banking
index took a nosedive after the heavyweight constituent the ICICI
Bank started correcting fiercely from morning high. In the
process, the index went on to breach the support level of 18800.
As expected, this led to a weakness in the index to shed nearly a
percent during the session.
Going forward, the Bank Nifty is likely to face a resistance around
the 18900 - 19050 levels; whereas on the other hand, a
sustainable move below yesterday's low may result into further
weakness towards 18600 -
18500 levels. Traders are thus
advised to stay light on positions and follow strict stop losses for
existing positions.
Key Levels
Support 1 - 18600
Resistance 1 - 18900
Support 2 - 18500
Resistance 2 - 19050
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Technical & Derivatives Report
August 02, 2016
Comments
Nifty Vs OI
The Nifty futures open interest has increased by 2.23%
BankNifty futures open interest has increased by 9.60%
as market closed at 8636.55 levels.
The Nifty August future closed with a premium of 45.45
points against a premium of 48.10 points in previous
session. The September series closed at a premium of
92.10 points.
The Implied Volatility of at the money options has
increased from 13.75% to 14.34%.
The total OI of the market is Rs. 2,23,187/- cr. and the
stock futures OI is Rs. 70,121/- cr.
Few of the liquid counters where we have seen high cost
of carry are HINDALCO, HDFCBANK, PTC, TATACOMM
and IBREALEST.
Views
OI Gainers
Yesterday, FIIs were net buyer in both cash market and
OI
PRICE
Index Futures segment. They bought equities to the tune
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
of Rs. 726 crores. While, they were net buyer in Index
VOLTAS
6262000
36.61
370.15
5.80
Futures worth Rs. 632 crores with rise in open interest,
LT
7997500
24.91
1486.00
-4.21
indicating formation of long positions.
EXIDEIND
10208000
18.31
178.05
-1.19
In Index Options segment, FIIs bought of worth Rs. 673
crores with rise in OI. In call options, 8900-9000 strikes
JINDALSTEL
61371000
17.47
89.75
6.65
were active and they also added good amount of fresh
ICICIBANK
60732500
15.28
251.05
-5.12
open interest. On the other hand in put options, some
build-up was visible in
8400-8600 strikes. Highest
OI Losers
buildup in August series is placed at 9000 call and 8500
OI
PRICE
SCRIP
OI
PRICE
put options.
CHG. (%)
CHG. (%)
Despite market being under pressure yesterday, FIIs
TVSMOTOR
6572000
-10.73
296.75
1.18
continue to pour in liquidity. We believe if FIIs continue
ANDHRABANK
14010000
-7.65
60.10
-0.41
their buying trend, NIFTY may touch its resistance zone of
UPL
5457600
-6.15
615.10
-1.78
8750-8800 levels. Traders are suggested to hold one to
DISHTV
36316000
-5.64
105.25
1.54
their longs as of now and start booking profits once Nifty
OIL
739500
-5.23
369.85
0.05
is near its resistance zone.
Historical Volatility
Put-Call Ratio
SCRIP
HV
SCRIP
PCR-OI
PCR-VOL
VOLTAS
37.40
NIFTY
0.94
0.91
PETRONET
30.58
BANKNIFTY
0.63
0.75
HCLTECH
28.31
ICICIBANK
0.40
0.46
BAJFINANCE
63.21
LT
0.57
0.71
LT
35.83
INFY
0.30
0.29
Strategy Date
Symbol
Strategy
Status
01-08-2016
RELIANCE
Ratio Bear Put Spread
Active
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Technical & Derivatives Report
August 02, 2016
FII Statistics for 01-August 2016
Turnover on 01-August 2016
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Contracts
( in Cr. )
(%)
Contracts
Change (%)
(in Cr.)
INDEX
INDEX
2561.09
1929.36
631.72
293676
19425.88
2.87
261109
17958.64
62.68
FUTURES
FUTURES
INDEX
INDEX
43380.04
42707.26
672.78
805377
52567.04
6.22
2928979
204670.91
85.14
OPTIONS
OPTIONS
STOCK
5855.15
6829.91
(974.76)
795277
51991.81
2.31
STOCK
FUTURES
625156
44036.61
9.58
FUTURES
STOCK
STOCK
4479.06
4520.69
(41.63)
41337
2738.48
88.12
OPTIONS
351916
24982.89
33.68
OPTIONS
TOTAL
56275.33
55987.22
288.11
1935667
126723.22
5.03
TOTAL
4167160
291649.05
61.61
Nifty Spot = 8636.55
Lot Size = 75
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
8700
114.80
Buy
8700
134.30
43.35
56.65
8743.35
42.25
57.75
8657.75
Sell
8800
71.45
Sell
8600
92.05
Buy
8700
114.80
Buy
8700
134.30
74.55
125.45
8774.55
73.10
126.90
8626.90
Sell
8900
40.25
Sell
8500
61.20
Buy
8800
71.45
Buy
8600
92.05
31.20
68.80
8831.20
30.85
69.15
8569.15
Sell
8900
40.25
Sell
8500
61.20
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
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Technical & Derivatives Report
August 02, 2016
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ACC
1,659
1,674
1,689
1,704
1,718
ADANIPORTS
220
224
230
235
241
AMBUJACEM
268
269
271
273
275
ASIANPAINT
1,104
1,113
1,123
1,132
1,142
AUROPHARMA
767
778
792
802
817
AXISBANK
540
545
552
557
563
BAJAJ-AUTO
2,672
2,704
2,742
2,774
2,812
BANKBARODA
142
145
149
152
157
BHEL
136
139
144
147
152
BPCL
583
589
596
602
609
BHARTIARTL
359
362
364
367
369
INFRATEL
385
391
400
405
414
BOSCH
24,207
24,465
24,857
25,115
25,507
CIPLA
513
519
527
532
540
COALINDIA
322
324
328
330
334
DRREDDY
2,922
2,951
2,977
3,006
3,032
EICHERMOT
21,821
22,073
22,463
22,716
23,106
GAIL
373
377
382
385
390
GRASIM
4,866
4,927
4,973
5,034
5,080
HCLTECH
736
758
775
797
813
HDFCBANK
1,212
1,227
1,243
1,258
1,274
HDFC
1,350
1,362
1,380
1,392
1,409
HEROMOTOCO
3,178
3,197
3,223
3,241
3,267
HINDALCO
132
134
137
139
141
HINDUNILVR
910
917
924
931
938
ICICIBANK
240
245
253
258
266
IDEA
102
103
104
105
107
INDUSINDBK
1,161
1,181
1,193
1,213
1,225
INFY
1,061
1,073
1,080
1,093
1,100
ITC
246
248
252
254
257
KOTAKBANK
735
744
757
766
778
LT
1,427
1,460
1,523
1,556
1,619
LUPIN
1,684
1,704
1,726
1,746
1,768
M&M
1,436
1,453
1,473
1,491
1,511
MARUTI
4,728
4,797
4,841
4,910
4,954
NTPC
156
158
159
160
162
ONGC
215
217
220
222
226
POWERGRID
173
175
178
180
182
RELIANCE
996
1,003
1,012
1,018
1,027
SBIN
221
224
228
232
236
SUNPHARMA
815
826
833
843
850
TCS
2,595
2,652
2,688
2,745
2,781
TATAMTRDVR
322
326
330
334
338
TATAMOTORS
500
504
510
514
519
TATAPOWER
70
71
72
73
74
TATASTEEL
350
357
362
370
374
TECHM
470
480
486
497
503
ULTRACEMCO
3,706
3,731
3,750
3,775
3,795
WIPRO
538
548
555
565
572
YESBANK
1,189
1,205
1,220
1,236
1,251
ZEEL
485
495
502
512
519
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Technical & Derivatives Report
August 02, 2016
Research Team Tel: 022 - 39357800
For Technical Queries
For Derivatives Queries
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