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Technical and Derivatives Review | April 08, 2022

Mixed sentiments in key indices, broader market outshines

Sensex (59447) / Nifty (17785)

Source: Tradingview.com

Future outlook

On Monday, the news flow with respect to the merger of two giant companies, HDFC Ltd and HDFC Bank resulted in a complete gush

in these heavyweights and then rub off of this was seen across the broader market. In this process, the key indices, Nifty and Bank

Nifty just took off right from the word go. Since the HDFC conglomerate is known for its reputation, this development provided the

much needed impetus to the rally. However, on the following sessions, the momentum fizzled out and as a result, key indices

witnessed a decent profit booking for three consecutive sessions. Fortunately, on Friday, markets recovered from key levels to

conclude the week tad below 17800.

It has been an eventful week for our markets specifically, because it started with a bang due to HDFC twins merger news and then

on the last day, the RBI monetary policy became the show stopper. Although the way market kicked off on Monday, the following

sessions were not up to the mark. After giving a single day abnormal surge, both these stocks witnessed a decent profit booking

thereafter. Fortunately, post the monetary policy, market took it positively and ended the week slightly inside the safe terrain. For

the coming week, 17600 followed by 17400 are likely to provide some cushion for the index and till the time, we do not close below

these key levels, we would continue with our ‘Buy on decline’ strategy. On the flipside, the first sign of strength would be visible

after surpassing the 17900 mark.

Despite some mid-week hiccups, we managed to defend key supports and going by the famous phrase ‘All’s well that ends well’, we

must look at the optimistic close. The coming week is going to be the truncated one and hence, do not expect any big bang moves in

key indices. The upside as of now looks limited for the week towards 18000 – 18100. But the way broader market kept buzzing in the

challenging phase this week as well, one must continue to focus outside the index.

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Technical and Derivatives Review | April 08, 2022

An action-packed start to the FY23

Nifty spot closed at 17784.35 this week, against a close of 17670.45 last week. The Put-Call Ratio has decreased from 1.30 to 1.01.

The annualized Cost of Carry is positive at 9.69%. The Open Interest of Nifty Futures decreased by 28.76%.

Derivatives View

Nifty current month future closed with a premium of 94.40 points against a premium of 90.80 points to its spot. Next month future

is trading at a premium of 139.70 points.

The start of FY23 has indeed been a roller coaster ride for the equity market, wherein the benchmark index pared down the initial

gains of the week, though concluding the week in favor of the Bulls. Taking a glance at the F&O data, we observed mixed activity

during the week, wherein the stronger hands were seen closing their short positions, followed by a mix of long building and

unwinding throughout the week. In the options segment, the pile-up is clearly visible in 17600-17700 Put strikes. While on the

contrary, a considerable OI concentration is built on the 18000 call option, breaching which a strong momentum could be seen in

the comparable period. Considering recent development, we remain upbeat on the market and expect the bullish momentum to

continue. Also, traders are advised to use any declines to add new long positions.

Scrip

Futures

Chg (%)

Price

Chg(%)

ZEEL 86106000 28.17 287.30 (2.69)

RBLBANK 59829900 26.65 128.40 (3.96)

ONGC 56741300 13.79 171.50 (2.56)

IDFC 116180000 13.61 62.80 (2.03)

MPHASIS 1704850 9.76 3181.15 (3.34)

Weekly change in OI

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

BSOFT 6087900 35.82 492.45 5.74

IOC 54704000 27.59 127.80 7.44

TATACOMM 4279200 26.33 1353.60 15.91

BALRAMCHIN 8300800 23.94 513.15 6.83

CANFINHOME 3785925 20.59 661.45 9.71

Short Formation

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Technical and Derivatives Review | April 08, 2022

Sameet Chavan

Chief Analyst

–

Technical & Derivatives

sameet.chavan@angelone.in

Sneha Seth Derivatives Analyst 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 Derivative Queries E-mail: derivatives.desk@angelone.in

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