May 23, 2022
www.angelone.in
Technical & Derivatives Report
Nifty Bank Outlook
-
(34276)
It was certainly an action-packed week and on Friday the activity
started with a huge gap up opening. This was then followed up
by further strong momentum to erase all Thursday's lost ground
and end with gains of 2.88% and the week with gains of 3.49% at
34276. Despite the sharp sell-off on Thursday, we were a bit
skeptical about it as the indicators were in deep oversold
territory and we had highlighted a fresh buy crossover in RSI
Smoothed indicator. This signal played out well on Friday as
finally the bank index snapped its weekly losing streak and
ended with healthy gains. The way markets have behaved in the
recent past, it would be too soon to say that the bulls have the
upper hand however the way some of the heavyweight counters
have performed further traction in them would definitely augur
well for the bulls. On the hourly chart, we have seen a higher
bottom taking place, and if we sustain above 34700 that would
develop 'HIGHER TOP HIGHER BOTTOM' which could then trigger
further positive traction in the index. On the flip side, 34000 -
33800 is seen as immediate support. We believe if there are no
further problems on the global front then ideally any dip
towards the support should be taken as buying opportunity.
Key Levels
Support 1 – 34000 Resistance 1 – 34700
Support 2 – 33800 Resistance 2 – 35000
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Sensex (54326) / Nifty (16266)
Our markets witnessed many twists and turns during the last
week and on Friday the activity started with yet another gap; but
this time it was fortunately on the higher side. This pleasant
surprise picked up its momentum as the day progressed, to
conclude the week convincingly above the 16200 mark.
The second half of the week gone by was full of dramatic twists
and turns. Both counterparties were caught napping in all this
but as we mostly say ‘All’s well that ends well’. Eventually the
bulls turned out to be victorious as they managed to pull the Nifty
back inside the safe terrain by gaining over 3% from previous
weekly close. With reference to our previous week’s
commentary, 15700 – 15600 stands to be a very solid support;
because it coincides with the ’89-EMA’ on weekly chart who has
proved its mettle many times over the past many years. Yes we
are not completely out of the woods but at least we are well
above the crucial support zone. On the flipside, the cluster of
resistance is placed around 16400 – 16500 – 16600 and till the
time we do not surpass it convincingly, one should avoid being
complacent. At this juncture, we are clearly mirroring US
markets’ sentiments and hence, if market has to move higher,
the global relief is the key.
Let’s see how things pan out
this
week. It would be important
to keep a regular tab on global developments and one should
certainly be prepared for surprising moves on either side. As
far as sectoral participation is concerned, we witnessed some
decent relief moves in most of the beaten heavyweight
spaces during the week. Also, the broader market has started
to show some encouraging signs, which we believe should do
extremely well if market remains above the psychological
support of 16000.
Key Levels
Support 1 – 16100 Resistance 1 – 16400
Support 2 – 16000 Resistance 2 – 16500
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Technical & Derivatives Report
May 23, 2022
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It has been a roller coaster week for our market
that fortunately halted the selling saga with a
positive closure of around 3.07% in the benchmark
index Nifty50 on weekly basis.
FIIs were net sellers in the cash market segment
to the tune of Rs. 1265 crores. Simultaneously, in
Index futures, they bought worth Rs. 3012 crores
with a decrease in open interest, indicating short
covering.
Looking at the F&O data, short covering was seen in
both indices that, boosted the overall sentiments.
On the options front, a pile-up is seen at 16000 put
strike, indicating strong near-term support. While
on the higher end, 16300-16500 call strikes have
seen some fresh addition, indicating a range-bound
movement in the near term. Meanwhile, the long-
short ratio of FII has seen an increase from 23% to
39% on a weekly basis, that have bolstered the
bullish sentiments. The data signifies an
encouraging sign, though it is advisable to avoid
being complacent and stay watchful with daily
developments in both domestic and global markets.
Comments
The Nifty futures open interest has decreased by 6.33%.
and BANK Nifty futures open interest has decreased by
0.19% as the market closed at 16266.15.
The Nifty May future closed with a discount of 12.90 point
against a discount of 39.95 point in the last trading
session. The June series closed at a discount of 16.30
point.
The INDIA VIX decreased from 24.55 to 23.10. At the
same time, the PCR-OI of Nifty increased from 0.71 to
1.07.
Few of the liquid counters where we have seen high
cost of carry are DRREDDY, GRANULES, SUNTV,
NESTLEIND and RELIANCE.
Hi
storical Volatility
SCRIP HV
IDEA 94.60
IBULHSGFIN 78.65
ZEEL 72.06
HINDCOPPER 67.94
RBLBANK 66.77
Nifty Vs OI
15000
15500
16000
16500
17000
17500
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
5-2 5-5 5-9 5-11 5-13 5-17 5-19
Openinterest Nifty
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
RAMCOCEM 3219800 22.83 691.70 0.43
GODREJCP 6703500 17.98 758.40 -4.65
ASHOKLEY 36539000 13.04 130.35 6.52
APOLLOTYRE 12644000 12.86 216.75 1.98
ZYDUSLIFE 17041900 11.91 356.85 5.15
GSPL 2329200 10.65 272.60 3.78
BHEL 131880000 10.39 53.10 7.79
HDFCAMC 5437100 10.37 1706.80 0.33
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
LICHSGFIN 21898000 -7.65 369.90 4.13
GNFC 4546100 -6.42 635.90 5.03
DELTACORP 16732500 -6.10 234.25 3.01
BOSCHLTD 117850 -5.76 14175.10 5.72
GRANULES 10029400 -5.73 271.20 10.38
CANFINHOME 3821025 -5.66 471.60 4.14
BIOCON 12187700 -5.49 340.00 5.47
ITC 102233600 -5.23 280.00 1.59
Put-Call Ratio
SCRIP PCR (OI) PCR (VOL)
NIFTY 1.07 0.69
BANKNIFTY 1.07 0.84
RELIANCE 0.42 0.28
ICICIBANK 0.49 0.59
INFY 0.38 0.50
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Technical & Derivatives Report
May 23, 2022
Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation.
Nifty Spot = 1
6266
.
15
FII Statistics for
May
20
, 2022
Detail Buy
Contracts
Open
Interest
Value
(in Cr.)
Sell
Net
CHANGE
INDEX
FUTURES
4838.54 5759.31 (920.77) 183823 14723.13 11.05
INDEX
OPTIONS
1056857.01 1039952.96 16904.05
1528187 121736.38 (21.31)
STOCK
FUTURES
19544.89 19501.12 43.77
2417214 145668.64 3.37
STOCK
OPTIONS
9274.52 9296.75 (22.23) 160967 10064.66 1.80
Total
1090514.96
1074510.14
16004.82
4290191
292192.81
(6.82)
Turnover on
May
20
, 2022
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index
Futures
539392 44471.83 13.53
Index
Options
59490119 4970287.17
-70.99
Stock
Futures
1328508 81273.86 17.69
Stock
Options
4438187 288825.29
20.35
Total
44,38,187 288825.29
-69.20
Bull
-
Call Spreads
Action Strike Price Risk Reward BEP
Buy
16200 206.20
54.55 45.45 16254.55
Sell
16300 151.65
Buy
16200 206.20
99.65 100.35 16299.65
Sell
16400 106.55
Buy
16300 151.65
45.10 54.90 16345.10
Sell 16400 106.55
Bear
-
Put Spreads
Action Strike Price Risk Reward BEP
Buy
16200 153.15
35.25 64.75 16164.75
Sell
16100 117.90
Buy
16200 153.15
63.15 136.85 16136.85
Sell
16000 90.00
Buy
16100 117.90
27.90 72.10 16072.10
Sell
16000 90.00
Nifty Put
-
Call Analysis
,0
1000,000
2000,000
3000,000
4000,000
5000,000
6000,000
7000,000
8000,000
15600 15700 15800 15900 16000 16100 16200 16300 16400 16500 16600 16700 16800 16900
Call Put
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Technical & Derivatives Report
May 23, 2022
`
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS 734 751
762 779 790
APOLLOHOSP 3,541 3,604
3,650 3,713 3,759
ASIANPAINT 3,047 3,078
3,102 3,133 3,157
AXISBANK 651 662
669 680 687
BAJAJ-AUTO 3,677 3,732
3,791 3,846 3,905
BAJFINANCE 5,645 5,707
5,775 5,837 5,904
BAJAJFINSV 12,297 12,429
12,564 12,697 12,831
BPCL 325 329
332 336 339
BHARTIARTL 679 683
687 692 696
BRITANNIA 3,310 3,380
3,422 3,492 3,534
CIPLA 923 951
967 994 1,010
COALINDIA 182 184
185 187 189
DIVISLAB 4,178 4,242
4,283 4,347 4,388
DRREDDY 3,850 4,050
4,174 4,374 4,499
EICHERMOT 2,625 2,667
2,693 2,734 2,761
GRASIM 1,439 1,464
1,493 1,517 1,547
HCLTECH 1,009 1,019
1,027 1,037 1,044
HDFCBANK 1,281 1,301
1,313 1,333 1,344
HDFCLIFE 526 535
541 551 557
HDFC 2,129 2,165
2,189 2,225 2,248
HEROMOTOCO 2,514 2,552
2,583 2,621 2,651
HINDALCO 414 422
428 436 442
HINDUNILVR 2,254 2,290
2,319 2,355 2,384
ICICIBANK 687 698
705 716 723
INDUSINDBK 874 885
893 904 911
INFY 1,436 1,446
1,456 1,466 1,476
ITC 274 277
280 283 285
JSW STEEL 610 620
627 638 645
KOTAKBANK 1,776 1,802
1,821 1,848 1,867
LT 1,542 1,576
1,595 1,629 1,647
M&M 879 891
901 914 924
MARUTI 7,363 7,475
7,562 7,674 7,761
NESTLEIND 15,981 16,421
16,691 17,131 17,401
NTPC 146 148
149 151 153
ONGC 158 160
162 164 166
POWERGRID 223 226
230 233 236
RELIANCE 2,448 2,536
2,590 2,679 2,733
SBILIFE 1,050 1,061
1,072 1,083 1,094
SHREECEM 20,444 21,223
22,599 23,377 24,754
SBIN 450 456
460 466 470
SUNPHARMA 879 897
907 926 936
TCS 3,248 3,271
3,292 3,315 3,336
TATACONSUM
727 733
738 744 749
TATAMOTORS 405 412
416 423 428
TATASTEEL 1,126 1,148
1,163 1,186 1,201
TECHM 1,107 1,119
1,127 1,139 1,147
TITAN 2,114 2,126
2,141 2,152 2,167
ULTRACEMCO 6,018 6,074
6,119 6,174 6,220
UPL 789 799
813 823 838
WIPRO 452 456
459 463 466
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Technical & Derivatives Report
May 23, 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 (Extn. 6844) 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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