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Review
|October 21, 2022
Banking outshines, Nifty tad below 17600
Sensex (59307) / Nifty (17576)
Source: Tradingview.com
Future outlook
The week started on a sluggish note as global markets once again looked a bit tentative over the previous weekend. However,
market participants at our end pounced on to this opportunity as we witnessed a V-shaped recovery to reclaim the 17300 mark.
Adding to this, the sentiments on global front improved drastically as the week progressed which provided the much needed
impetus for our domestic markets. As a result, we kept marching higher in latter half to eventually conclude the pre-Diwali week
convincingly above 17500 by adding over a couple of percent gains to the bulls’ kitty.
Most of our recent hope or anticipation has turned into a reality and in the process, rock solid support zone around 17000 – 16800
has certainly proved its significance. The bulls were determined to defend this last week and with slight improvement in global
peers, fueled the rally in our market to regain some strength. From a technical stand point, Nifty is now placed in a safer territory
and from hereon, the immediate support is visible in the vicinity of 17400 – 17350. Since the undertone is strongly bullish, one
should continue with an optimistic bias and should continue using intermediate declines to add bullish bets. On the higher side, Nifty
has reached to our immediate targets of 17500 – 17600; but now, we can safely extend these projections towards 17800 and even
retesting of 18000 cannot be ruled out. For this to happen, we do not require flamboyant moves from global bourses, rather there
stability is the need of the hour and hence, no negative news would be considered as a good news only.
Sectorally, the banking outshined by a fair margin this week; especially on Friday after the stellar Quarterly numbers from private
banking giant, Axis Bank. This heavyweight space is likely to be the major charioteer and once other heavyweight too starts chipping
in, markets are good to go towards the 18000 mark. As far as the broader market is concerned, it remained quite this week; but if
we see global uncertainty completely disappearing, the midcaps would have a strong comeback soon.
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|October 21, 2022
Short Formation
Massive writing in ATM and OTM call options
Nifty spot closed at 17576.35 this week, against a close of 17185.70 last week. The Put-Call Ratio has increased from 0.91 to 1.03
The annualized Cost of Carry is negative at 4.10%. The Open Interest of Nifty Futures increased by 6.13%
Derivatives View
Nifty current month’s future closed with a discount of 11.85 against a premium of 9.80 points to its spot in the previous week. Next
month’s future is trading at a premium of 23.50 points.
Finally, after last three weeks we manged to breach the resistance zone around 17500 on the closing basis. We had a sluggish start
for the week, but strong buying emerged on Monday to almost recoup all the losses seen on last Friday. Next day, we had a bumped
up start and we managed to reclaim 17500 and this was followed by rough move towards 17650. In F&O space, fresh long
formations are seen in Nifty and Bank Nifty. Post some selling in initial three days, stronger hands turned net buyers in the cash
segment. In the Index futures, they added bullish bets in index as well as stock futures segment. Hence the FIIs ‘Long Short Ratio’ has
improved from 23% to 30%. We observed fresh writing in 17500 and 17600 put strikes. On the other side, 17600-18200 call options
added huge positions which could be on short side. At current juncture, 17300-17400 is a strong demand zone for the benchmark
index and until we manage to sustain above same the biasness remains positive.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
MOTHERSON 97119000 35.02 62.25 (10.37)
LTTS 1292000 33.86 3504.50 (2.80)
INDUSINDBK 28900800 25.44 1143.65 (3.50)
BERGEPAINT 9005700 23.80 585.45 (4.54)
UBL 1365200 21.33 1622.35 (1.95)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
CUB 11430000 48.83 185.95 1.39
AXISBANK 59740800 30.68 896.20 11.61
SYNGENE 2929000 29.14 579.80 5.20
HAL 4828850 27.76 2407.40 2.64
BANKBARODA 119223000 22.03 143.40 9.51
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For Private Circulation Only
Tech
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Review
|October 21, 2022
Sameet Chavan
C
hief Analyst
–
Technical
& Derivati
ves
sameet.chavan@angelone.in
Sneha Seth Senior Analyst – Technical & Derivatives 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 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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