DEC 20, 2022
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xOOOOOOOO
Nifty Bank Outlook (43414)
The BANKNIFTY too started the week on a flat note in line with
benchmark index. In the initial hour, the banking stocks looked a
bit tentative and hence, the index slipped towards the Friday’s low
of 43080. Fortunately, the bulls latched on to this small decline,
resulting in a decent recovery thereafter. With some sustenance at
higher levels, the banking index managed to close above the 43400
mark by recovering more than four tenths of a percent from the
previous close.
The banking space has been strong and resilient on Friday also. It
has managed to defend the sacrosanct support zone of 43000
42800 in last couple of sessions. Hence, as long as it remains
unbroken, there is no need to worry for. On the flipside, If bulls
have to regain strength, the BANKNIFTY needs to surpass 43600
with some authority. This development will confirm the
resumption of higher degree up trend and then we can see banking
taking the charge to lift the overall sentiments. Traders are advised
to stay positive till the time key supports remain intact.
Key Levels
Support 1 – 43100 Resistance 1 – 43600
Support 2 – 42800 Resistance 2 – 43700
Exhibit 1: Nifty
Daily
Chart
Exhibit 2: Nifty Bank
Daily
Chart
Sensex (61806) / Nifty (18420)
Our market started the week on a flat note, taking cues from mixed
global bourses. Soon after the opening bell, the bulls grabbed the
opportunity and made a modest recovery in the benchmark index,
after which slender range-bound moves were seen for most of the
day. However, the market gained further traction in the
penultimate hour as broad-based buying weighed in and levitated
overall sentiments. Amidst the strong day of trade, the Nifty settled
near the day’s high, procuring eighth-tenth a percent.
Technically, there has been no substantial change in the market
outlook as the bulls made a comeback from their support zone and
showcased their resilience. Since we are still below 18450 – 18500,
one more round of follow-up buying is needed to negate the
breakdown witnessed on Friday. The undertone is expected to
remain upbeat till Nifty sustains above the support of 18200,
followed by its sacrosanct demand zone of 18100-18000. Looking at
the technical setup, until the index decisively surpasses 18600, a
range-bound movement could be continued in the comparable
period. Simultaneously, the strategy of ‘buying near the support and
staying light near the resistance’ would be suitable in the current
situation, and participants are advised to keep a one step at a time
approach for a while.
As we advance, many stock-specific adjustments are likely to
continue and provide substantial trading opportunities as the
Midcap index is interestingly poised. Hence one should continue
to identify such potential movers and trade accordingly.
Meanwhile, traders should also stay abreast with global and
domestic developments and keep a close tab on the mentioned
levels.
Key Levels
Support 1 – 18330 Resistance 1 – 18500
Support 2 – 18250 Resistance 2 – 18600
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We had a muted start for the week, which was followed
by buying interest right from the word go. Post some
consolidation in the midst, follow-up buying emerged
in the end to reclaim 18400 on the closing basis.
FIIs were net sellers in the cash market segment to
the tune of Rs. 538 crores. Simultaneously, in Index
futures, they bought worth Rs. 1156 crores with a
decrease in open interest, indicating a short covering.
Looking at the F&O data, we witnessed short
covering in Nifty, whereas banking index added
fresh bullish bets. On the options front, the piling up
of OI is seen at 18200-18400 put strikes, indicating
upward shift in the support. On the flip side, the
maximum OI concentration is seen at the 18600 call
strike, signifying a stiff resistance for the Nifty.
Meanwhile, the stronger hands too preferred
covering shorts in index and stock futures segment.
Considering yesterdays price action, we would
advocate to focus of individual space which has
been showing good trading opportunity.
Comments
The Nifty futures open interest has decreased by
2.04% and Bank Nifty futures open interest has
increased by 8.24% as the market closed at 18420.45.
The Nifty December future closed with a premium of
78.85 point against a premium of 59.65 point in the
last trading session. The January series closed at a
premium of 180.55 point.
The INDIA VIX decreased from 14.07 to 13.55. At the
same time, the PCR-OI of Nifty has increased from
0.81 to 1.01.
Few of the liquid counters where we have seen high
cost of carry are POLYCAB, DRREDDY, GLENMARK,
MCDOWELL-N and PNB.
Historical Volatility
SCRIP HV
ADANIPORTS 42.44
HDFCAMC 35.38
M&M 35.57
INDIAMART 50.26
POWERGRID 32.23
Nifty Vs OI
17800
18000
18200
18400
18600
18800
19000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
11/30 12/2 12/6 12/9 12/13 12/15 12/17
Openinterest Nifty
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BRITANNIA 1435600 12.81 4526.45 1.74
MUTHOOTFIN 7888050 11.30 1089.60 1.34
ESCORTS 1168200 9.68 2202.80 1.17
CHAMBLFERT 9852000 8.74 304.85 -3.01
TCS 10121575 7.69 3202.05 -1.06
MGL 2883200 7.65 906.85 1.88
UBL 1264800 6.29 1754.50 0.86
AXISBANK 44431200 5.60 946.20 1.11
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BALRAMCHIN 9062400 -18.98 391.85 -0.61
COLPAL 2339050 -10.76 1601.25 1.53
EICHERMOT 2896775 -5.00 3388.90 2.95
INDIAMART 301800 -4.33 4481.10 4.18
HDFC 16035600 -4.15 2710.55 1.44
PNB 209392000 -3.95 56.05 -0.53
PVR 3104189 -3.72 1845.60 0.81
CANFINHOME 4790175 -3.61 541.60 3.65
Put-Call Ratio
SCRIP PCR (OI) PCR (VOL)
NIFTY 1.01 0.91
BANKNIFTY 0.97 0.97
RELIANCE 0.41 0.35
ICICIBANK 0.44 0.50
INFY 0.38 0.50
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Technical & Derivatives Report
DEC 20, 2022
Note: Above mentioned Bullish or Bearish Spreads in Nifty (Dec Series) are given as an information and not as a recommendation.
Nifty Spot =
1
8
420.45
FII Statistics for
December
1
9
, 2022
Detail Buy
Contracts
Open
Interest
Value
(in Cr.)
Sell
Net
CHANGE
INDEX
FUTURES
3198.30 2042.49 1155.81
154286 15037.61 (8.70)
INDEX
OPTIONS
895821.49 892237.83 3583.66
2153144 207446.94 12.96
STOCK
FUTURES
9368.07 7601.65 1766.42
1983828 136774.67 (0.19)
STOCK
OPTIONS
10944.93 10708.56 236.37
166729 11763.19 (0.14)
Total 919332.79
912590.53
6742.26
4457987
371022.41
5.40
Turnover
on
December
1
9
, 2022
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index
Futures
266575 26203.42 -36.26
Index
Options
125584385 38962.44 -25.56
Stock
Futures
666109 46703.52 -23.18
Stock
Options
3550916 2783.44 -19.47
Total
3,550,916 2783.44 -27.30
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy
18400 202.35
60.95
39.05
18460.95
Sell
18500 141.40
Buy
18400 202.35
108.35
91.65
18508.35
Sell
18600 94.00
Buy
18500 141.40
47.40 52.60 18547.40
Sell 18600 94.00
Bear
-
Put Spreads
Action Strike Price Risk Reward BEP
Buy 18400 103.95
29.10
70.90
18370.90
Sell
18300 74.85
Buy 18400 103.95
50.35
149.65
18349.65
Sell 18200 53.60
Buy
18300 74.85
21.25 78.75 18278.75
Sell 18200 53.60
Nifty Put
-
Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
4000,000
4500,000
17800 17900 18000 18100 18200 18300 18400 18500 18600 18700 18800 18900 19000 19100
Call Put
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`
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1 R2
ADANIENT
3,918
3,997
4,050
4,129
4,183
ADANIPORTS
846
870
883
906
919
APOLLOHOSP 4,485 4,548
4,584
4,647
4,683
ASIANPAINT 3,023 3,052
3,070 3,099
3,117
AXISBANK 927 936
942
952
958
BAJAJ-AUTO
3,519
3,574
3,605 3,661
3,692
BAJFINANCE 6,555 6,621
6,663
6,729
6,771
BAJAJFINSV
1,575
1,597
1,612 1,634
1,649
BPCL
332
337
340
345
349
BHARTIARTL 813 827
836
850
859
BRITANNIA 4,382 4,454
4,496 4,568 4,609
CIPLA
1,078
1,087
1,094
1,103
1,110
COALINDIA 223 225
227
229
230
DIVISLAB 3,286 3,316
3,333
3,363
3,380
DRREDDY 4,280 4,338
4,373
4,431
4,467
EICHERMOT
3,233
3,311
3,360 3,438
3,488
GRASIM
1,734
1,750
1,760
1,776
1,786
HCLTECH 1,017 1,025
1,031
1,039
1,046
HDFCBANK 1,619 1,632
1,639
1,652
1,660
HDFCLIFE
569
577
582
589
594
HDFC 2,648 2,679
2,697
2,728
2,745
HEROMOTOCO 2,682 2,731
2,758 2,807
2,834
HINDALCO 451 456
459
464
467
HINDUNILVR 2,654 2,686
2,703
2,735
2,752
ICICIBANK
897
902
906
911
916
INDUSINDBK 1,196 1,210
1,226
1,239
1,255
INFY
1,485
1,496
1,506
1,518
1,528
ITC
332
336
339
343
346
JSW STEEL 736 743
747
754
758
KOTAKBANK 1,831 1,844
1,854
1,868
1,878
LT
2,143
2,164
2,176
2,196 2,208
M&M
1,227
1,259
1,277
1,309
1,327
MARUTI 8,388 8,496
8,559
8,667
8,729
NESTLEIND
19,680
19,881
20,001
20,201
20,321
NTPC 168 170
171
173
174
ONGC 144 145
146 147 149
POWERGRID
212
215
217
221
223
RELIANCE 2,553 2,576
2,590 2,613
2,627
SBILIFE
1,244
1,256
1,263
1,275
1,283
SBIN
599
602
606
608
612
SUNPHARMA
965
977
985
996
1,004
TCS
3,163
3,183
3,214
3,234
3,265
TATACONSUM
794
802
806
813 817
TATAMOTORS
411
415
419 422
426
TATASTEEL
110
111
112
112
113
TECHM
1,003
1,015
1,022
1,033
1,040
TITAN 2,449 2,485
2,505 2,542
2,562
ULTRACEMCO
6,962
7,019
7,067
7,124 7,171
UPL
758
764
769
775
780
WIPRO
384
386
388
391
393
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Technical & Derivatives Report
DEC 20, 2022
*
Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelone.in
Sneha Seth Senior Analyst – Technical & Derivatives sneha.seth@angelone.in
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelone.in
Osho Krishan Senior Analyst – Technical & Derivatives osho.krishan@angelone.in
Research Team Tel: 022 – 39357600 Website: www.angelone.in
For Technical Queries E-mail: technicalresearch-cso@angelone.in
For Derivatives Queries E-mail: derivatives.desk@angelone.in
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