For Private Circulation Only

Technical and Derivatives Review | November 12, 2021

Nifty reclaims 18100 due to late recovery

Sensex (60687) / Nifty (18103)

Source: Tradingview.com

Future outlook

Overall the global cues were a bit favourable on Monday morning and hence after a long break, our markets opened with a decent

upside gap to test 18000. However within few minutes of trade, all these gains just disappeared and in fact, we went on to slide

below 17850. Market was not done with its twists and turns as we saw strong buying interest at lower levels to pull the market

higher. The positive momentum gained some pace post the mid-session to surpass the morning high. This was followed by two days’

of consolidation in a small range. On the weekly expiry day, we had a soft opening on the back of some nervousness seen in major

global peers. In fact in the initial hour itself, the weakness extended in some of the heavyweight pockets. This led to breach of 17900

first and then after a decent consolidation, Nifty went on to even test the 17800 mark. At the stroke of the penultimate hour, the

expiry factor started playing out and this time it fortunately favoured the bulls as we witnessed a smart recovery towards the end to

trim some portion of losses.

This was followed by a complete opposite action on Friday as we witnessed a gap up opening first and then due to sustained buying

in some of the heavyweights, Nifty went on to reclaim the 18100 mark at the close. Market seems to have trapped in a range and

this week although point wise we gyrated within 300 points, it’s hardly one and half a percent range for the Nifty. So we would

rather call it a consolidation in the range of 17800 – 18100. For the coming week, 18200 – 18350 is to be seen as a crucial range and

till the time we do not surpass it convincingly, we are not completely out of the woods yet. In fact, it would be too early to comment

on it; but we can clearly see a bearish formation of ‘Head and Shoulder’ being in process on the daily chart of Nifty. The neckline

support is around 17700 – 17600, which if gets broken, we could see difficult days for market in the short run. With reference to our

recent cautious stance on the market, we will not be surprised to see it happening soon, if we fail to go beyond the mentioned zone

of 18200 – 18350 in the forthcoming week.

The main reason for us to continue with the cautious stance is the formation of ‘Shooting Star’ pattern on monthly chart. As long as

we do not break the high of the candle, it can prove its significance anytime. Hence, we reiterate on avoiding aggressive longs and

even if one wants to follow stock specific moves, needs to be very selective.

For Private Circulation Only

Technical and Derivatives Review | November 12, 2021

Base shifted higher to 18000 now

Nifty spot closed at 18102.75 this week, against a close of 17829.20 last week. The Put-Call Ratio has increased from 0.81 to 1.16.

The annualized Cost of Carry is positive at 4.42%. The Open Interest of Nifty Futures decreased by 0.97%.

Derivatives View

Nifty current month future closed with a premium of 30.70 points against a premium of 17.95 points to its spot. Next month future

is trading at a premium of 86.95 points.

Last week was full of action, as we began the week on a cheerful note and saw sharp selling in the initial hour of trade to plunge

below 17850. Luckily, index recovered to recoup all the losses on the same day and reclaimed 18100 on Tuesday early morning.

However, index witnessed some nervousness at the higher levels and hence corrected below 17800 on Thursday. On Friday, we had

a strong opening and follow-up buying led weekly closing tad above 18100 mark. In F&O space, we hardly saw any relevant build-up

in Nifty; the recovery seen on Friday was mainly due to short covering; whereas, banking index witnessed decent open interest

reduction. In options front, out the money calls of 18300 and 18500 added meaningful positions and in case of puts, 18000 puts

added massive positions. This has resulted highest open interest addition shifting higher to 18000 put and 18500 call options.

Considering the options data, we would advocate traders to trade with a positive bias until we managed to sustain above 18000.

Scrip

Futures

Chg (%)

Price

Chg(%)

INDUSINDBK 21214800 49.45 1039.25 (12.14)

HDFCBANK 37826800 25.05 1559.40 (1.51)

ALKEM 695400 22.30 3566.80 (2.78)

RECLTD 35454000 21.56 145.55 (3.55)

STAR 3909825 21.22 510.10 (5.45)

Weekly change in OI

Long Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

IPCALAB 2245500 45.02 2166.30 3.88

NAVINFLUOR 827550 25.32 3536.45 3.11

IBULHSGFIN 38877100 24.07 230.25 1.79

BOSCHLTD 171400 20.37 18628.10 4.93

VEDL 165493500 18.99 329.45 5.58

Short Formation

For Private Circulation Only

Technical and Derivatives Review | November 12, 2021

Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelone.in

For Technical Queries E-mail: technicalresearch-cso@angelbroking.com

For Derivative Queries E-mail: derivatives.desk@angelbroking.com

DISCLAIMER

Angel Broking 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 Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel

Broking 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. Angel or its associates/analyst has not received any compensation / managed

or co-managed public offering of securities of the company covered by Analyst during the past twelve months.

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.

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 Broking 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 Broking 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 Broking 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 Broking 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.

Technical and Derivatives Team:

Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelone.in

Rajesh Bhosale Technical Analyst rajesh.bhosle@angelone.in

Sneha Seth Derivatives Analyst sneha.seth@angelone.in