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Technical and Derivatives Review | April 22, 2022
Market looks clueless, banking continues to disappoint
Sensex (57197) / Nifty (17172)
Source: Tradingview.com
Future outlook
After four days of massive break, our markets started the week on a miserable note, taking unfavorable global cues into a
consideration. The weakness extended as the day progressed and in the process, the Nifty went on to slide below 17100.
Fortunately, some respite was seen at lower levels and due to modest recovery towards the end, the Nifty ended Monday’s session
with over 1.70% cut, tad below the 17200 mark. The subsequent session looked a bit promising but last hour massive sell off across
the board caught most of the traders on the wrong foot. With immense velocity, the index closed below 17000. Around the mid-
week, we saw good recovery and in the process, the penultimate weekly expiry ended around 17400. However, Friday’s session
poured complete water on this attempt as we witnessed heavyweight sulking once again to conclude the week slightly below the
17200 mark.
It was a complete roller-coaster move for our markets but unfortunately for most part of the week, we remained timid and the way
banking space ended the week, it certainly does not bode well for the bulls. Honestly, this week’s movement indicates clueless
market and so as we. Although, we remain hopeful till the time 17000 – 16800 remains defended, the overall positioning at the end
of the week is not so convincing. So, first couple of sessions of the forthcoming week remains crucial for markets. Also, one must
keep a close tab on how global markets behave. As far as levels are concerned, 17300 – 17450 are to be treated as immediate
hurdles; whereas on the flipside, the crucial support remains at 17000 – 16800. Traders are advised not to trade aggressively till the
time trend becomes clear and also, unlike the previous weeks, we are not left with any convincing idea in individual stock as well. So
one needs to be very selective when it comes to stock centric approach and should ideally follow strict stop losses for momentum
bets.
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Technical and Derivatives Review | April 22, 2022
Mixed position in F&O data, affirms the tentativeness
Nifty spot closed at 17171.95 this week, against a close of 17475.65 last week. The Put-Call Ratio has increased from 0.72 to 0.91.
The annualized Cost of Carry is positive at 2.05%. The Open Interest of Nifty Futures decreased by 1.28%.
Derivatives View
Nifty current month’s future closed with a premium of 5.80 points against a premium of 43.60 points to its spot. Next month’s future
is trading at a premium of 55.15 points.
A timid start for our equity market tracking the weakness among global bourses, that further got aggravated on the next day. The
benchmark index Nifty50 plummeted below the psychological mark of 17000 but soon over recouped the fall. It has been an action-
packed week with an intense tug of war between the bulls and the bears. Looking at the F&O data, we observed mixed activity,
wherein the stronger hands started with adding short positions, followed by a mix of long formation and unwinding throughout the
week, which kept the traders on their toes. The pile-up is visible in the 17000 Put strike in the options segment, which is expected to
act as a key support zone. While on the contrary, a considerable OI concentration is built on the 17300-17400 call stikes, breaching
which some momentum could be seen in the expiry week. Considering recent development, some indecisiveness could be sensed in
the market, and thus traders are advised to stay cautious until the trend gets clear.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
POLYCAB 1003800 51.54 2526.05 (3.69)
HDFCBANK 91047550 50.87 1357.60 (7.81)
PERSISTENT 641400 45.54 4034.60 (7.18)
LTI 1751250 34.61 5090.85 (15.85)
AUBANK 2889500 28.48 1374.55 (1.85)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
L&TFH 61843320 33.53 89.00 7.81
COALINDIA 49408800 24.00 202.20 8.19
NTPC 84057900 21.28 160.40 3.82
MARUTI 2628700 16.07 7902.30 5.74
IOC 62933000 10.10 134.55 4.91
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Technical and Derivatives Review | April 22, 2022
Sameet Chavan
–
Technical & 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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Technical and Derivatives Review | April 22, 2022
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