Technical & Derivatives Report
August 05, 2016
Sensex (27714) / Nifty (8551)
Exhibit 1: Nifty Hourly Chart
Yesterday, our markets opened higher owing to overnight
developments over the GST Constitutional Amendment Bill.
However, as expected, this eventually turned out to be a non-
event as we saw a sharp decline immediately post the opening
tick. The index remained under pressure for quite some time as a
result, the volatile day eventually ended around the 8550 mark.
We had mentioned in our earlier report about few technical
evidences indicating weakness or consolidation in the near term.
Firstly, the lower top lower bottom in hourly chart along with a
negative crossover in 'RSI- Smoothened' on daily chart. Last two
day’s movement with a negative bias was clearly an impact of
these mentioned observations. However, having said that, we do
not expect a substantial downside form current level as the
directional view with a target of 8800 remains intact. We rather
expect a consolidation within a small range of 8480 - 8460 to
8610 - 8680 for next few sessions. Thus, traders need to be very
selective in their trades and thus, aggressive approach is strictly
not recommended. For the coming session, traders should keep a
close watch on two key levels, 8610 as a resistance and 8518 as
an immediate support.
Key Levels
Support 1 - 8518
Resistance 1 - 8610
Support 2 - 8480
Resistance 2 - 8680
Nifty Bank Outlook - (18572)
Exhibit 2: Nifty Bank Hourly Chart
Amidst volatile trading session, the Nifty bank index ended
yesterday's session with marginal loss of 0.16 percent over its
previous session’s close. The Nifty PSU Bank index outperformed
with gains of 0.70 percent.
Yesterday, the Nifty Bank opened higher tracking SGX Nifty post
the GST development. However, post opening, the index
corrected and tested the support of 18450 (hourly 200SMA)
which we had mentioned in our yesterday's report. The index has
shown minor pullback in last hour from the support zone and
thus, traders are advised to keep a tab on the mentioned support.
Traders are advised not to create short positions as the downside
seems to be limited from current levels. Short term traders should,
infact, look for stock specific opportunities with good risk reward
ratio. The intraday support for the index are placed around
18450 and 18300 whereas resistances are seen around 18750
and 18866.
Key Levels
Support 1 - 18450
Resistance 1 - 18750
Support 2 - 18300
Resistance 2 - 18866
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Technical & Derivatives Report
August 05, 2016
Comments
Nifty Vs OI
The Nifty futures open interest has increased by 0.40%
BankNifty futures open interest has decreased by 9.19%
as market closed at 8551.10 levels.
The Nifty August future closed with a premium of 43.30
points against a premium of 37.70 points in previous
session. The September series closed at a premium of
89.75 points.
The Implied Volatility of at the money options has
decreased from 15.18% to 13.97%.
The total OI of the market is Rs. 2,61,192/- cr. and the
stock futures OI is Rs. 72,910/- cr.
Few of the liquid counters where we have seen high cost
of carry are GMRINFRA, ADANIPOWER, ALBK,
BAJFINANCE and JPASSOCIAT.
Views
OI Gainers
FIIs continue to pour in liquidity in both equities and
OI
PRICE
Index Futures. They bought in cash market segment to
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
the tune of Rs. 559 crores. While, they were net buyers of
AMARAJABAT
910800
35.78
876.50
-4.47
Rs. 711 crores in Index Futures with some rise in OI,
CONCOR
620500
30.91
1433.35
-4.05
indicating fresh long formation near immediate support
zone of 8500-8550.
GODREJIND
1800000
22.20
400.60
-2.65
On Index Options front, FIIs bought significantly of Rs.
BATAINDIA
3187800
14.73
530.70
-4.64
1902 crores with rise in OI. We hardly saw any major OI
ALBK
13160000
14.04
78.50
3.49
additions both in Nifty call and put strikes. 8800 call and
8400 put strikes were comparatively active and they also
OI Losers
added some fresh build-up. Decent amount of
OI
PRICE
SCRIP
OI
PRICE
unwinding was witness in 8900 call options; we believe
CHG. (%)
CHG. (%)
those who were long in 8900 call have squared off their
AJANTPHARM
274800
-5.76
1813.90
-0.49
positions losing hopes on market breaching these higher
CADILAHC
3912000
-5.31
371.20
6.77
levels. Highest OI in August series is placed at 9000 call
BIOCON
3363800
-5.30
827.20
0.75
and 8500 put options. Seeing the above data, we would
PCJEWELLER
498000
-5.14
412.00
2.42
suggest traders to buy on dips and those who are short
VOLTAS
5746000
-5.02
346.65
0.73
should exit at current levels.
Historical Volatility
Put-Call Ratio
SCRIP
HV
SCRIP
PCR-OI
PCR-VOL
DHFL
34.15
NIFTY
0.89
0.74
CADILAHC
48.53
BANKNIFTY
0.49
0.70
AMARAJABAT
37.74
ICICIBANK
0.34
0.34
MCDOWELL-N
43.24
LT
0.46
0.41
IGL
24.66
INFY
0.27
0.26
Strategy Date
Symbol
Strategy
Status
01-08-2016
RELIANCE
Ratio Bear Put Spread
Active
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Technical & Derivatives Report
August 05, 2016
FII Statistics for 04-August 2016
Turnover on 04-August 2016
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Contracts
( in Cr. )
(%)
Contracts
Change (%)
(in Cr.)
INDEX
INDEX
2706.91
1995.61
711.30
308494
20212.62
1.31
252904
16607.79
-2.92
FUTURES
FUTURES
INDEX
INDEX
53944.74
52042.70
1902.04
908781
58685.60
3.83
3341977
387680.37
65.94
OPTIONS
OPTIONS
STOCK
5582.31
5777.92
(195.61)
841851
54199.42
1.12
STOCK
FUTURES
578456
36183.23
-8.13
FUTURES
STOCK
STOCK
3704.25
3645.71
58.54
61922
4050.11
9.80
OPTIONS
302611
20008.17
-4.70
OPTIONS
TOTAL
65938.21
63461.94
2476.27
2121048
137147.75
2.53
TOTAL
4475948
460479.56
48.01
Nifty Spot = 8551.10
Lot Size = 75
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
8600
108.55
Buy
8500
76.30
42.50
57.50
8642.50
28.35
71.65
8471.65
Sell
8700
66.05
Sell
8400
47.95
Buy
8600
108.55
Buy
8500
76.30
72.65
127.35
8672.65
46.70
153.30
8453.30
Sell
8800
35.90
Sell
8300
29.60
Buy
8700
66.05
Buy
8400
47.95
30.15
69.85
8730.15
18.35
81.65
8381.65
Sell
8800
35.90
Sell
8300
29.60
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 05, 2016
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ACC
1,642
1,654
1,669
1,682
1,697
ADANIPORTS
220
224
227
231
233
AMBUJACEM
260
262
264
266
268
ASIANPAINT
1,095
1,111
1,133
1,149
1,171
AUROPHARMA
737
744
752
759
767
AXISBANK
538
543
549
554
561
BAJAJ-AUTO
2,697
2,720
2,748
2,771
2,799
BANKBARODA
142
149
153
160
164
BHEL
130
132
134
136
138
BPCL
548
559
568
579
589
BHARTIARTL
347
357
363
372
378
INFRATEL
384
388
392
397
401
BOSCH
24,299
24,628
24,829
25,158
25,359
CIPLA
517
522
528
533
539
COALINDIA
316
320
324
328
332
DRREDDY
2,908
2,935
2,958
2,986
3,009
EICHERMOT
20,714
21,059
21,350
21,695
21,987
GAIL
368
371
375
377
381
GRASIM
4,945
4,970
4,994
5,019
5,042
HCLTECH
811
817
827
833
843
HDFCBANK
1,227
1,234
1,240
1,247
1,254
HDFC
1,302
1,311
1,322
1,332
1,343
HEROMOTOCO
3,222
3,249
3,277
3,304
3,332
HINDALCO
134
136
137
138
139
HINDUNILVR
903
911
916
924
930
ICICIBANK
232
236
241
245
249
IDEA
103
104
105
106
107
INDUSINDBK
1,141
1,154
1,170
1,183
1,200
INFY
1,059
1,066
1,076
1,082
1,093
ITC
248
250
252
255
257
KOTAKBANK
746
751
756
761
767
LT
1,440
1,454
1,475
1,490
1,511
LUPIN
1,623
1,640
1,659
1,677
1,696
M&M
1,410
1,423
1,444
1,457
1,478
MARUTI
4,826
4,858
4,901
4,933
4,977
NTPC
156
158
159
160
161
ONGC
216
218
221
223
226
POWERGRID
175
177
178
180
181
RELIANCE
976
984
992
1,001
1,009
SBIN
220
223
226
229
231
SUNPHARMA
833
841
848
856
863
TCS
2,610
2,631
2,657
2,678
2,704
TATAMTRDVR
310
316
320
326
330
TATAMOTORS
484
492
497
505
510
TATAPOWER
70
70
71
72
72
TATASTEEL
351
363
369
380
386
TECHM
490
495
499
505
509
ULTRACEMCO
3,601
3,629
3,664
3,692
3,728
WIPRO
542
545
549
552
555
YESBANK
1,207
1,219
1,232
1,245
1,258
ZEEL
477
482
489
494
501
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Technical & Derivatives Report
August 05, 2016
Research Team Tel: 022 - 39357800
For Technical Queries
For Derivatives Queries
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