1
For Private Circulation Only
Technical and Derivatives Review | August 27, 2021
Nifty continues to hit new milestones
Sensex (56125) / Nifty (16705)
Source: Trading View
Future outlook
Post previous weeks volatility, Nifty started the week on a positive note as the global markets recovered which led to some positive
sentiment. Market participants looked a bit perplexed on Monday, but the broader markets saw buying interest on Tuesday which
led to an upmove in the index to march towards new highs again. In next couple of sessions, Nifty consolidated within a range till
expiry and it again resumed the momentum on the last day to end the week above 16700.
Inspite of the volatility in the midcap and smallcap space, the index has managed to hold on and has continued to register new highs.
However, the broader markets got its mojo back as many stocks witnessed buying interest from their respective supports. The index
continues to be in an uptrend and thus one should continue to trade with a positive bias and avoid taking any contra trades until any
reversal seen. The only concern that we have been highlighting is the banking index which has shown a relative underperformance
for so long. But, this index is still in a consolidation phase and has not breached it's important supports. Hence, there's a good
probability of some buying interest emerging in this sector which would then lead to further support to the benchmark. The
immediate supports for Nifty are placed around 16600 and 16500 while the levels to watch on upside will be 16800 and then 17000
mark.
Recently we have seen that when everything looks hunky dory, we see some volatile stock specific moves. Also how the global
markets shape up in the near term due to events can have an impact on our markets. Hence, one should keep track on the global
developments and also book timely profits in trading positions.
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For Private Circulation Only
Technical and Derivatives Review | August 27, 2021
Nifty support base shifts higher to 16600
Nifty spot closed at 16705.20 this week, against a close of 16450.50 last week. The Put-Call Ratio has increased from 1.21 to 1.40.
The annualized Cost of Carry is positive at 0.83%. The Open Interest of Nifty Futures increased by 1.88%.
Derivatives View
Nifty current month future closed with a discount of 9.10 points against a premium of 16.95 points to its spot. Next month future is
trading at a premium of 31.80 points.
Nifty started the week on a positive note following the global cues. The index gradually moved higher and ended the week above
16700 with gains of over one and a half percent. The rollover data indicates that long positions in Nifty have been rolled to
September series while the shorts in the banking space have not been rolled to the next series. FII’s have rolled good amount of
stock futures longs and currently their ‘Long Short Ratio’ in index futures stands at 66 percent. The above mentioned data is
optimistic and hints that we should see a continuation of the rally in the near term and hence traders should trade with a positive
bias. It would be crucial to see how positions develop in the BankNifty index hereon and if there’s any addition of fresh long
formation in this space, then it could take the leadership in lifting the benchmark higher. As per the open interest data, 16600 would
be seen as a support for the coming week while 16800 and 17000 are levels to watch on the higher side.
Weekly change in OI
Short Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Chg(%)
MARUTI
3506600
14.31
(2.75)
BHARATFORG
8544000
6.31
(2.92)
EICHERMOT
4130000
5.66
(1.23)
MARICO
10336000
5.47
(2.00)
TITAN
4750500
4.44
(2.50)
Long Formation
Scrip
OI
Futures
OI
Chg (%)
Price
Chg(%)
TORNTPOWER
3042000
11.55
8.50
ESCORTS
5894900
7.73
13.46
HDFCAMC
950200
6.57
3.85
ICICIBANK
86297750
5.60
2.78
NAUKRI
958000
4.39
9.83
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For Private Circulation Only
Technical and Derivatives Review | August 27, 2021
Research Team Tel: 022 - 39357600 (Extn – 6844) Website: www.angelone.in
For Technical Queries E-mail: [email protected]om
For Derivative Queries E-mail: [email protected]
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst – Technical & Derivatives sameet.chavan@angelbroking.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bhosle@angelbroking.com
Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com