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Technical and Derivatives Review | April 13, 2022

Market consolidates ahead of long break

Sensex (58339) / Nifty (17476)

Source: Tradingview.com

Future outlook

Despite a promising close last Friday, our markets started the week on Monday on a tepid note owing to sluggish global cues.

On the same day, Nifty consolidated for the major part with the hint of some weakness to close below 17700. However, on

the following day, we witnessed a decent gap down opening on the back of some nervousness seen across the global markets.

Although the damage was restricted to a great extent, individual stocks saw decent profit booking all this while. The similar

range bound session was observed on Wednesday to conclude the truncated week with nearly 2% loss tad below the 17500

mark.

It was certainly a bit challenging week for our markets and obviously due to such long gap, market participants chose to take

some money off the table and did not carry over aggressive trades. Now if we take a glance at the daily time frame chart, we

can see Nifty placed at a crucial juncture. Firstly, the sacrosanct support of ’20-day EMA’ is positioned at 17450 which

coincides with the breakout point of previous congestion zone. Hence till the time, Nifty is holding 17400 – 17200, we remain

a bit hopeful of some recovery here. We hope there is no aberration on global front in coming days and any favorable cue

would certainly be a cherry on the cake. On the upside, 17700 followed by 17850 are the levels to watch out for. If Nifty has to

regain any strength, it needs to surpass these barriers with some authority.

Let’s see how things pan out and in our sense, if benchmark has to move higher from here, the banking needs to take the

charge (which we are assuming on this occasion). The BANKNIFTY is placed at its rock solid support of 37000 – 36800. A move

beyond 38000 would provide the impetus for the next leg of the rally. Apart from this, although broader market underwent

some profit booking in last couple of days, we still expect the smaller names to outperform going forward.

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Technical and Derivatives Review | April 13, 2022

Nifty stuck in the range of 17400-17700

Nifty spot closed at 17475.65 this week, against a close of 17670.45 last week. The Put-Call Ratio has decreased from 1.01 to 0.72.

The annualized Cost of Carry is positive at 9.69%. The Open Interest of Nifty Futures increased by 1.78%.

Derivatives View

Nifty current month future closed with a premium of 43.60 points against a premium of 42.55 points to its spot. Next month future

is trading at a premium of 94.15 points.

We began the truncated week with some nervousness; however, no major damage was observed thereafter as the benchmark index

traded in a narrow range of merely 120 points for the entire day. Next day, we once again had a gap down opening and then

follow-up selling dragged index below 17450; however, due to some respite managed to close above 17500. On Wednesday,

market kick started the day on a cheerful note but couldn’t sustain at higher levels and slipped back towards 17450. Finally,

we concluded the week tad below 17500 with a cut of 1.74%. in F&O space, we observed some fresh shorts in Nifty as well as

BankNifty. Call writer added decent positions in 17500-17600 call strikes; hence, market may face immediate hurdle around

17550-17600 now. Whereas on the other side, looking at positions piled up in 17400 and 17500; we believe market may find

support around 17400. For the coming week, we need to keep a close watch on above mentioned levels and breaching of any

levels may dictate the directional move.

Scrip

Futures

Chg (%)

Price

Chg(%)

PERSISTENT 440700 43.74 4346.75 (8.34)

LTTS 956000 25.62 4519.45 (9.73)

INFY 37897800 18.57 1755.10 (3.67)

INTELLECT 1662750 17.68 917.05 (4.86)

HDFCBANK 60347100 16.55 1472.60 (3.42)

Weekly change in OI

Long

Formation

Scrip

Futures

Chg (%)

Price

Chg(%)

AMBUJACEM 30928500 28.99 370.55 9.36

ACC 3179250 22.72 2212.15 1.31

ABCAPITAL 22730400 20.64 117.90 3.19

OBEROIRLTY 4328800 11.69 1002.15 3.97

PVR 2987380 10.98 1911.05 1.36

Short Formation

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Technical and Derivatives Review | April 13, 2022

Sameet Chavan

Chief Analyst

–

chnical & 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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