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Technical and Derivatives Review
| August 06, 2022
Tentativeness continues, 17500 remains a sturdy wall
Sensex (58388) / Nifty (17397)
Source: Tradingview.com
Future outlook
Our market started the session with a decent bump up on Monday, carrying last week’s strong optimism. Globally, things continued
on a brighter side and that was providing the much-needed impetus to the rally across the globe. As the week progressed, we
extended our gains towards yet another psychological junction of 17500. However, if we dive deep into it, we can realize, this week’s
up move (barring Monday) was not as smooth as the previous one. We did observe some profit booking at higher levels and in fact,
on Thursday, the profit booking was severe at one point. But fortunately, all these intraday declines were successfully getting bought
into. Eventually, the benchmark index ended the session at 17400 by adding more than a percent to the previous week’s close.
It was certainly not an easy-going week for market participants. Barring the strong up move on Monday, we witnessed nervousness
at higher levels throughout the remaining part of the week. In fact, on the weekly expiry session, we witnessed a massive profit
booking from the morning highs of 17490. Within a blink of any eye, we not only slid below 17400 and 17300 but also went on to
test the sub-17200 terrain. This intimidating sell off was as good as a reality check for bulls and hence, we have been reiterating not
to become complacent at any point this week. Fortunately, the undertone is extremely bullish and hence, all these intraday declines
were successfully getting absorbed in the market. For the coming week, 17500 – 17650 remains a sturdy wall and till the time, we do
not surpass it convincingly, we would continue to see some tentativeness at higher levels. On the flipside, 17300 followed by 17150
has now become a sacrosanct support. Considering the overall development, we expect some consolidation to continue in the
coming week as well.
Traders are advised not to carry aggressive bets overnight for a while and ideally, the strategy would be to follow one step at a time
and respect levels on either side. At the start of the week, the stock specific movements were a bit vibrant, but it seems to have
cooled off a bit towards the end. Hence, we need to see what all themes emerge as we step into the new week.
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Technical and Derivatives Review
| August 06, 2022
Massive writing in 17500-17600 call
Nifty spot closed at 17397.50 this week, against a close of 17158.25 last week. The Put-Call Ratio has decreased from 1.36 to 1.05.
The annualized Cost of Carry is positive at 3.41%. The Open Interest of Nifty Futures increased by 9.85%.
Derivatives View
Nifty current month’s future closed with a premium of 18.65 against a premium of 13.85 points to its spot in the previous week.
Next month’s future is trading at a premium of 87.95 points.
We had a positive start for the week and the optimism extended throughout the week to reclaim 17500. However, we did observe
some profit booking at higher levels. In derivatives front, we observed good amount of open interest addition in both the indices; we
believe majority of them were on long side. Stronger hands continued to pour liquidity in index equity market but added few shorts
in index futures segment. Their ‘Long Short Ratio’ declined to 55% from 60% WOW. In options front, we observed massive writing in
17500-17600 call options. Considering the above data points, we believe 17500- 17600 may act as a hurdle for the forthcoming
week, whereas 17100-17200 remains the strong demand zone. Hence, until we are trading in above mentioned range, traders are
advised to prefer stock specific approach.
Chg (%)
ALKEM 424000 85.64 3125.70 (3.09)
INDUSTOWER 19628000 72.15 200.25 (10.20)
SYNGENE 2651000 70.92 564.00 (1.23)
GAIL 45865900 67.65 132.80 (9.26)
BALRAMCHIN 10673600 55.94 351.55 (11.55)
Weekly change in OI
Long Formation
Chg (%)
BOSCHLTD 165000 30.64 17431.10 1.18
DALBHARAT 1371000 30.32 1622.65 1.04
ABFRL 12771200 28.22 278.95 3.01
LUPIN 10421850 26.13 671.20 3.68
ICICIPRULI 8062500 24.42 577.95 3.74
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Technical and Derivatives Review
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Sameet Chavan
Technical & Derivatives
sameet.cha[email protected]ngelone.in
Sneha Seth Senior Analyst Technical & Derivatives sneh[email protected]gelone.in
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelone.in
Osho Krishan Senior Analyst – Technical & Derivatives osho.krisha[email protected]
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelone.in
For Technical Queries E-mail: technicalresearch-c[email protected]gelone.in
For Derivative Queries E-mail: derivatives[email protected]gelone.in
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