1
For Private Cir
culation Only
Technical and Derivatives Review | March 25, 2022
Market takes a breather after recent smart recovery
Sensex (57362) / Nifty (17153)
Source: Tradingview.com
Future outlook
We had a soft start to the new trading week on Monday as indicated by the sluggish global peers. Barring an initial hour, Nifty
remained under pressure for the remaining part of the session as it kept grinding slowly and steadily. Due to lack of buying interest,
the Nifty eventually ended the session with nearly a percent cut tad above the 17100 mark. This was followed by a V-shaped
recovery on the following day to reclaim the 17300 mark. However, post the gap up opening on Wednesday, markets (key indices)
started becoming a bit nervous and the similar sort of boredom was witnessed throughout the latter half to conclude the week with
less than a percent cut tab above the 17150 mark.
In the previous couple of weeks, our markets have already weathered the storm and managed to give a remarkable recovery of
nearly 10% in such a short span. So some sort of respite was very much on cards and this is what we had mentioned in our previous
weekly commentary that the market may not have the similar kind of strength/pace that it had in the previous weeks. Whenever
market struggles around key levels, it generally happens in two scenarios. Firstly, when market is sensing some unpleasant event or
when it gives a sharp up move in a quick succession and needs some breather before resuming higher. Although, we are not
completely out of the woods if we take Russia-Ukraine tensions into the consideration, chartically we cannot think of the first
scenario at this moment. This week’s price behavior aptly suits with the second scenario which in technical terms can be described
as a ‘Time-wise Correction’. Let’s see how things unfold and if there is no aberration globally, we are most likely to hold the
sacrosanct support zone of 17000 – 16900.
The first half of the forthcoming week would certainly give us the fair idea of the short term direction. Till then 17350 – 17450 are to
be considered as immediate hurdles. This week, IT, Reliance, Metal and to some extent Pharma counters provided the helping hand;
but banking kept sulking in the latter half. Since banking index has approached its key support zone, we hope it to take some charge
from hereon. Apart from this, the broader market did extremely well this week and we expect it to continue in coming week as well.
Hence traders can look to identify such potential themes to fetch higher returns.
2
For Private Cir
culation Only
Technical and Derivatives Review | March 25, 2022
Market took a breather, post an epic run
Nifty spot closed at 17194.05 this week, against a close of 17287.05 last week. The Put-Call Ratio has decreased from 1.24 to 0.94.
The annualized Cost of Carry is positive at 14.56%. The Open Interest of Nifty Futures decreased by 2.92%.
Derivatives View
Nifty current month future closed with a premium of 41.05 points against a premium of 35 points to its spot. Next month future is
trading at a premium of 88.05 points.
The Indian equity market has witnessed a slender range-bound movement in the entire week, wherein the benchmark index Nifty50
settled with a mere cut of 0.78 percent, a tad above 17150 levels. The prevailing congestion phase depicts the tentativeness among
the market participants as any surge towards 17450-17500 has acted as a profit booking zone. However, the undertone of the
market is likely to remain bullish till the sheet anchor of the 17000 mark is sustained in the index. Taking a glance at the F&O data,
we observed mixed activity during the week. On a net basis, open interest reduction was observed in both indices. Surprisingly,
stronger hands turned net buyers in equities, though with irregularities but relief from relentless sell-off. In the options segment, the
pile-up is clearly visible in 17000 Put strikes, which is again an encouraging sign. Considering recent development, we remain upbeat
on market and expect a follow-up move towards 17450 – 17500.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
KOTAKBANK 19414800 46.24 1720.65 (5.53)
IDFCFIRSTB 223864800 44.51 39.90 (6.56)
COROMANDEL 1285625 36.77 795.15 (6.77)
GUJGASLTD 5682500 34.98 493.05 (2.71)
DIXON 712000 33.55 4267.80 (4.28)
Weekly change in OI
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
INTELLECT 1249500 72.82 861.80 11.84
INDHOTEL 26219418 47.52 228.00 9.01
CUMMINSIND 2257800 39.99 1088.10 6.12
BSOFT 4482400 29.48 465.70 4.66
ATUL 154275 27.53 10063.55 3.23
Short Formation
3
For Private Cir
culation Only
Technical and Derivatives Review | March 25, 2022
Sameet Chavan
Chief
Analyst
–
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
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 Cir
culation Only
Technical and Derivatives Review | March 25, 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.
