1
For Private Circulation Only
Technical and Derivatives Review |October 07, 2022
Market manages to digest currency weakness, Nifty reclaims 17300
Sensex (58191) / Nifty (17314)
Source: Tradingview.com
Future outlook
Despite SGX NIFTY was indicating a sluggish start, our markets opened with marginal gains on Monday by completely shrugging off
global cues. However, since the global developments over the previous weekend were a bit unfavorable, we failed to capitalize on
this promising start, because things had to come to an equilibrium and hence, we witnessed a sustained selling throughout the
session. Fortunately, the bulls made a remarkable comeback on the very next day to reclaim the 17200 mark. In the latter half,
although we tested 17400 after a one-day break, market saw some sluggishness to conclude the week above 17300 as bulls
managed to pocket more than a percent on a weekly basis.
With reference to our previous commentary, we had mentioned how ‘Bullish Engulfing’ pattern formed last Friday can provide some
strength in our market. Although, Monday’s session was a bit intimidating, the configuration remained intact and as the week
progressed, it certainly proved it’s worth. Now, since Nifty has managed to surpass 17200 and is maintaining it’s position above this,
17200 – 17000 now becomes a sacrosanct zone for our market. Additionally, we can now observe yet another technical indicator i.e.
positive crossover in daily ‘RSI-Smoothened’ is likely to provide the helping hand for bulls. If global market supports, we being the
stronger market is likely to continue the upward direction. As far as levels are concerned, 17400 - 17500 - 17650 to be seen as
immediate hurdles for our benchmark index. We advise traders to remain sanguine and looking at the placement of NIFTY MIDCAP
50 index, it’s better to keep focusing on stock specific moves.
2
For Private Circulation Only
Technical and Derivatives Review |October 07, 2022
PCR-OI once again plunged below 1
Nifty spot closed at 17314.65 this week, against a close of 17094.35 last week. The Put-Call Ratio has decreased from 1.22 to 0.97
The annualized Cost of Carry is positive at 1.50%. The Open Interest of Nifty Futures increased by 4.11%
Derivatives View
Nifty current month’s future closed with a premium of 14.20 against a premium of 8.85 points to its spot in the previous week. Next
month’s future is trading at a premium of 59.15 points.
The Indian equity market has witnessed strong respite and finally we saw a positive closure after last two consecutive week’s fall. In
F&O space, fresh long build-up was seen in Nifty and short covering was observed in banking index. In recent pull back, put writers
added decent positions in 17000-17200 strikes. On Friday, we observed good amount of writing 17500 call options resulting PCR-OI
declining below 1. Stronger hands covered few shorts and added bullish bets in index futures segment; hence Long Short Ratio had
slightly improved from 16% to 20% WoW. Considering the above data points, we believe 17000-17200 shall now act as strong
support zone and any dips around this zone shall be an opportunity to add fresh longs in system. On the upside, around 17500 is the
immediate hurdle.
Scrip
OI
Futures
OI
Chg (%)
Price
GSPL
5660000
47.49
226.40
MOTHERSON
63605250
41.69
76.85
AUBANK
6705000
30.68
593.75
CROMPTON
4726500
28.93
396.40
RAMCOCEM
3555550
19.51
730.55
Weekly change in OI
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
CUB
7550000
55.99
179.45
2.87
IBULHSGFIN
45016000
24.24
136.15
14.08
INDIACEM
18751400
24.16
276.05
1.54
DELTACORP
17298300
18.72
228.45
14.40
IDFCFIRSTB
194070000
17.93
53.15
5.98
3
For Private Circulation Only
Technical and Derivatives Review |October 07, 2022
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 Derivative Queries E-mail: derivatives.desk@angelone.in
DISCLAIMER
Angel One Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager and investment advisor with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel One
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration
number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for
accessing /dealing in securities Market.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Angel or its associates or research analyst or his relative may have actual/beneficial ownership of 1% or more in the securities of the
subject company at the end of the month immediately preceding the date of publication of the research report. Neither Angel or its
associates nor Research Analysts or his relative has any material conflict of interest at the time of publication of research report.
Angel or its associates might have received any compensation from the companies mentioned in the report during the period
preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate
finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction in
the normal course of business. Angel or its associates did not receive any compensation or other benefits from the companies
mentioned in the report or third party in connection with the research report. Neither Angel nor its research analyst entity has been
engaged in market making activity for the subject company.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate
the contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel One Limited or any of its affiliates/ group companies shall not be in any way responsible
for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel One
Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make
any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel
4
For Private Circulation Only
Technical and Derivatives Review |October 07, 2022
One Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel One Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information. Angel or its associates or Research Analyst or his relative might have financial interest
in the subject company. Research analyst has not served as an officer, director or employee of the subject company.