1
For Private Circulation Only
Technical and Derivative
s Review
| August 13, 2022
Nifty placed at crucial resistance; undertone remains bullish
Sensex (59463) / Nifty (17698)
Source: Tradingview.com
Future outlook
Our market started the truncated week on a flat note taking cues from the muted global markets, but soon after, the momentum
accelerated led by a rally in the heavyweights, and the Nifty reclaimed the 17500 mark. As the week progressed, our markets also
extended their rally, which was generally due to the improvement in the global markets and the positive contribution of the FIIs.
However, the follow-up buying interest was missing for the entire week, showcasing the tentativeness among the market
participants at the higher levels. Eventually, the benchmark index continued its winning streak for the fourth consecutive week and
ended the session a tad below 17700 by procuring over 1.73 percent to the previous week’s close.
Technically speaking, the winning streak in the index has brought it towards the sloping trendline on the weekly chart, which might
be considered as the major hurdle for the index in the near period. Also, the recent upward move has been vertical in nature, so one
should not rule out the possibility of profit booking at the critical resistance zone. And any sort of correction in the upcoming week
should be considered healthy post such a strong rally, as structurally, we may get a higher bottom. The undertone is likely to remain
strongly bullish, and any dip towards the consolidation zone of 17150-17400 could be seen as an opportunity to add new longs in
the index from a directional point of view. As far as levels are concerned, 17780-17800 is the crucial supply zone, and any decisive
breach above the same could only trigger the next set of rallies in the index.
Considering the recent price action, traders are advised not to carry aggressive overnight bets for a while and should adapt the
strategy to follow one step at a time and respect levels on either side. The favorable global scenario was one of the major catalysts
for the entire bull run in the week; hence, one should stay abreast with global developments and the key domestic macro data. Also,
one can continue to focus on individual stocks as the thematic moves are still playing out well in the market.
2
For Private Circulation Only
Technical and Derivative
s Review
| August 13, 2022
17800-18000 to be seen as strong resistance
Nifty spot closed at 17698.15 this week, against a close of 17397.50 last week. The Put-Call Ratio has increased from 1.05 to 1.24.
The annualized Cost of Carry is positive at 8.59%. The Open Interest of Nifty Futures increased by 9.67%.
Derivatives View
Nifty current month’s future closed with a premium of 14.90 against a premium of 18.65 points to its spot in the previous week.
Next month’s future is trading at a premium of 84.00 points.
Nifty extended the northward move for the fourth consecutive week to reclaim 17700 with an authority. In F&O space, addition of
fresh longs was visible in both the key indices during the week; especially banking index which added 27% of fresh contracts. FIIs
continue their buying streak as they added shares of worth Rs. 7850 crores this week. In index futures they added some mixed bets,
as a resulted Long Short Ratio’ remains unchanged at 55% WoW. Call writers added fresh positions in 17800-18000 strikes suggest
strong hurdle around these strikes; whereas 17500 put strikes holds maximum positions which could act as immediate support zone.
After a strong run-up, any kind of profit booking at higher levels can’t be ruled out. Hence, traders are advised not to carry
aggressive overnight bets for the time being and keep focusing on individual space.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
IPCALAB 1747850 110.74 919.20 (9.30)
DIVISLAB 3272550 28.90 3734.00 (4.05)
MFSL 1966900 23.71 796.70 (3.26)
MRF 87520 23.58 83161.65 (6.43)
INDUSTOWER 22643600 15.36 196.90 (1.67)
Weekly change in OI
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
TATACHEM 9463000 91.02 1123.40 17.81
INDIACEM 15184400 50.20 193.50 1.28
PFC 41788000 41.09 121.15 1.51
GSPL 4090000 24.60 247.90 5.13
IRCTC 16373875 23.84 657.25 2.68
3
For Private Circulation Only
Technical and Derivative
s Review
| August 13, 2022
Sameet Chavan
Chief Analyst
Technical & Derivatives
sameet.cha[email protected]ngelone.in
Sneha Seth Senior Analyst – Technical & Derivatives sne[email protected]gelone.in
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelone.in
Osho Krishan Senior Analyst – Technical & Derivatives osho.kri[email protected]gelone.in
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelone.in
For Technical Queries E-mail: technicalresearch-c[email protected].in
For Derivative Queries E-mail: derivatives[email protected]gelone.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 Derivative
s Review
| August 13, 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.