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For Private Circulation Only
Technical and Derivatives Review | October 08, 2021
Highest close for Nifty, but still 18000 remains untouched
Sensex (60059) / Nifty (17895)
Source: Tradingview.com
Future outlook
Nifty started the week on a positive note on Monday and witnessed some momentum to reclaim 17700 with an ease. On Tuesday,
the global cues were a bit nervous, but still, we managed to shrug off the negativity and rallied higher post the opening to surpass
the 17800 mark. However, one day ahead of the weekly expiry, our markets finally reacted to the global weakness. The index
consolidated throughout the first half, but witnessed a sharp fall post midsession to end the day tad above 17600. The opening on
the expiry day was absolutely a shocker for bears as the shaky global markets recovered overnight and remained firm thereafter. As
a result, the Nifty continued its March towards the recent highs.
The RBI governor announced its monetary policy on Friday and the outcome was very much in line with the general consensus.
Markets did not look much excited as it turned out to be non-event. There was no follow up seen in key indices throughout the
remaining part of the session. Eventually Nifty ended the week around the 17900 mark, which is the highest ever close for our
markets. Considering the recent behaviour of the market, it is pretty clear that the bulls are not willing to let loose their firm grip so
easily. But we reiterate it is that sort of phase of the market, which may not be easy to participate in. We are not at all convinced
trading aggressively on the long side at this moment, yes there could be odd thematic moves that can be focused on but do not
want to go all guns blazing at such elevated levels.
As far as levels are concerned, 17900 – 17950 remains to be a sturdy wall and on the flipside, 17600 has become a sacrosanct
support now. The way we are following US markets of late; all eyes on them how they move going ahead. Also, as far as BANKNIFTY
is concerned, nobody knows what it is up to. Clearly directionless and is flirting around key support as well as resistance levels. The
IT heavyweight TCS is going to flag off the result season. Let’s see if any exciting outcome from this pushes Nifty beyond 18000 or
not.
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For Private Circulation Only
Technical and Derivatives Review | October 08, 2021
Long formations leads Nifty to 17900
Nifty spot closed at 17895.20 this week, against a close of 17532.05 last week. The Put-Call Ratio has increased from 0.98 to 1.30.
The annualized Cost of Carry is positive at 0.50%. The Open Interest of Nifty Futures increased by 8.07%.
Derivatives View
Nifty current month future closed with a premium of 17.80 points against a discount of 1.85 points to its spot. Next month future is
trading at a premium of 49.80 points.
We saw some hiccup in the market at the start of the week, but then the Nifty resumed its positive momentum and rallied higher to
end the week around 17900. Nifty witnessed formation of long positions in the week as the upmove has been supported by rise in
open interest by over 8 percent, while the Bank Nifty index saw unwinding of positions and the open interest declined by 10
percent. During the week, FII’s have sold equities in the cash segment while in index futures, they lightened up both long as well as
short positions. Their ‘Long Short Ratio’ continues to be around the last weeks level of 58 percent. In options segment, 17800-17600
put options added decent open interest. The highest open interest in the coming weekly expiry is at 18000 call and 17800 put
options. The data indicates immediate support for Nifty in the range of 17800-17700 and resistance is seen around 18000. If Nifty
surpasses this mark and call writers start unwinding positions, then we could see a continuation of upmove towards 18200.
However, if the mentioned supports are breached then it could lead to a pause in the ongoing momentum. Traders are advised to
keep a tab on the mentioned levels and trade with a stock specific approach with proper risk management.
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
IPCALAB 841050 63.59 2332.70
(8.18)
ICICIGI 3649050 59.95 1535.60
(9.29)
CIPLA 12242750 52.82 919.45
(9.84)
INDUSTOWER 14772800 37.97 306.35
(9.21)
MGL 3941400 22.69 1071.55
(3.81)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
IRCTC 3289000 67.11 4881.20 28.12
INDIAMART 232575 40.63 8854.15 6.26
MRF 65030 29.67 86211.55 8.58
DIXON 563625 24.18 5283.00 8.27
DEEPAKNTR 2846000 21.16 2891.70 21.18
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For Private Circulation Only
Technical and Derivatives Review | October 08, 2021
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelone.in
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For Derivative Queries E-mail: derivatives.desk@angelbroking.com
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelone.in
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelone.in
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelone.in
Sneha Seth Derivatives Analyst sneha.seth@angelone.in
