For Private Circulation Only

Technical and Derivatives Review

| July 02, 2021

Nifty defends 15650, week concluded with some hopes

Sensex (52485) / Nifty (15722)

Source: Trading View

Future outlook

Trading for the week started with an upside gap on Monday at new record high. However, since there was follow up buying missing

in the heavyweight constituents, the Nifty kept descending gradually after registering a high of 15915.65 in the opening trade. For

the major part of the day, index consolidated with a mild negative bias to eventually conclude tad above the 15800 mark by

shedding nearly three tenths of a percent. The similar trend continued for the following sessions and in the process, Nifty went on to

test sub-15700 levels. Fortunately on Friday, there was some buying observed at lower levels, which resulted in defending the key

support of 15650 successfully.

It was probably the dullest week in last fifteen months our markets have experienced. There have been many instances where key

indices undergo some sort of consolidation and trades in a slender range, but mostly in such times, the action continues in individual

themes and there are ample of opportunities available in the market to keep the traders engrossed. Barring Friday, stock specific

moves were also missing throughout this week which was frustrating for momentum traders. Now as far as levels are concerned, we

managed to hold crucial support of 15650. As long as 15650 – 15450 are being held, the bulls have no reason to worry for. On the

upside, reaching the new milestone of 16000 has become challenging and the market clearly seem to be waiting for some sort of

trigger to reach there. Before this, 15800 followed by 15900 are to be seen as immediate hurdles.

With Friday’s some positivity, the hopes have certainly built for benchmark index to head higher towards the millstone in the

forthcoming week. But we reiterate, if that has to happen, the banking space certainly needs to come out of its slumber phase. Let’s

see how things pan out going ahead and till then it’s better to keep a close tab of all the mentioned levels.

For Private Circulation Only

Technical and Derivatives Review

| July 02, 2021

Trended move to unfold only above 15800

Nifty spot closed at 15722.20 this week, against a close of 15860.35 last week. The Put-Call Ratio has decreased from 1.20 to 1.09.

The annualized Cost of Carry is positive at 1.66%. The Open Interest of Nifty Futures decreased by 2.10%.

Derivatives View

Nifty current month future closed with a premium of 25 points against a premium of 27.65 points to its spot. Next month future is

trading at a premium of 70.95 points.

In options segment, open interest addition was seen in 15800-16000 strikes while 15500 and 15200 put options witnessed open

interest build up. Highest open interest for coming weekly series is placed at 15800 call and 15700 put options.

Nifty started the week on an optimistic note above 15900, but it failed to show any follow-up move and corrected gradually during

the week to end tad above 15700 mark. During the week, we have not seen any major build-up in Nifty, but some shorts were added

in the banking index. FII’s unwound some of their longs in the index futures and their ‘Long Short Ratio’ has declined to 74.70

percent from last week’s 80 percent. In weekly options segment, build up is seen in 15800 call option which has the highest open

interest and thus is the near term resistance. The data is scattered in 15700-15500 puts indicating supports at every 100 point

difference. The option IV have declined significantly resulting in lower premiums. The index is trading close to the support end and

hence, traders should look for buying opportunities on dips. Although, the momentum on the higher side too could be restricted and

only if we see the index surpassing 15800 and call writers unwind their positions, then a trended move would unfold on upside.

Weekly change in OI

Short Fo

rmation

Scrip

Futures

Chg (%)

Price

Chg(%)

HDFCLIFE 20387400 121.59 689.90 (5.07)

CHOLAFIN

10503750

54.18

512.15

(4.18)

IDFCFIRSTB

168150000

42.09

54.25

(7.42)

SHREECEM

148925

28.91

27143.55

(5.77)

INDUSTOWER

15080800

18.69

235.90

(4.11)

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

TATACHEM 9003000 30.93 770.95 7.01

TORNTPHARM

776000

26.69

2962.60

2.00

SRF

353625

18.27

7516.05

6.00

LALPATHLAB

454750

16.68

3318.15

5.25

DABUR

7538750

15.87

90.45

4.16

For Private Circulation Only

Technical and Derivatives Review

| July 02, 2021

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

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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