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T
ech
nical and Derivative
s
Review
|October 29, 2022
Despite lull week, Nifty almost ends at 17800
Sensex (59960) / Nifty (17787)
Source: Tradingview.com
Future outlook
Generally, the Muhurat Trading day is considered a lull session but this time, we kicked off the new SAMVAT as well as the week
with a decent bump up on Monday. Importantly, unlike most of the Muhurat sessions, the gains were here to stay as we managed to
hold the initial lead convincingly. This was followed by back to back gap up openings but the follow up was clearly missing.
Eventually, the range bound week ended with more than a percent gains on a weekly basis.
Although, despite being a truncated week, we managed to add something on week-on-week basis; practically, the trading action was
very dull. Market failed to capitalise on all head-starts as we saw some challenges around the 17800 mark. On the other hand, the
bulls were successfully able to defend 17600, which made the weekly range to shrink to merely 200 points. In our sense, markets
have opted to take some breather before unfolding the next leg of the rally. As far as supports are concerned, 17600 - 17500 are to
be treated as key levels and till the time, it remains unbroken, there is no reason to worry for. On the flipside, it’s a matter of time,
we would see Nifty surpassing 17800 to retest the psychological junction of 18000.
Traders are advised to remain upbeat and keep a close watch on thematic moves which may get unfolded in the first half of the
forthcoming week. The banking has taken a pause after the recent run but soon it is likely to move beyond all time highs to enter an
uncharted territory.
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Review
|October 29, 2022
Short Formation
FIIs Long Short Ratio surged to 57%
Nifty spot closed at 17786.80 this week, against a close of 17576.35 last week. The Put-Call Ratio has increased from 1.03 to 1.12
The annualized Cost of Carry is positive at 3.30%. The Open Interest of Nifty Futures decreased by 20.07%
Derivatives View
Nifty current month’s future closed with a premium of 43.40 against a premium of 23.50 points to its spot in the previous week.
Next month’s future is trading at a premium of 106.30 points.
The truncated festive week ended on a positive note, the index reclaimed 17800 and maintained positive posture despite some
profit booking at higher levels. Rollover for Nifty and BankNifty stood at 76% and 77% respectively, which is lower than the three-
months average. On net basis, stronger hands continued to curb liquidity by selling to the tune of Rs. 4668 crores in October month
till date. In F&O space, they covered decent portion of shorts and rolled over bullish bets in the month of November; hence the Long
Short Ratio has surged drastically from 13% to 57%, which is indeed a positive development for our market. In index options
segment, traders are eyeing 17800 followed by 18000 on the upside; whereas 17500 put strike holds highest open interest
concentration. For the coming week, we continue with our bullish stance on market and expect the Nifty to soon surpass the
psychological mark of 18000. Hence, any dips should be used an opportunity to go long.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
SBICARD 6824000 16.72 813.55 (5.93)
PAGEIND 99705 16.27 49191.10 (7.38)
BALRAMCHIN 9337600 16.23 312.00 (6.60)
INDUSTOWER 17234000 6.86 188.35 (3.06)
MPHASIS 2403150 6.43 1952.95 (4.60)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
HONAUT 30780 33.94 39829.95 5.29
CUMMINSIND 3273000 11.62 1298.15 7.29
LICHSGFIN 13908000 6.97 423.05 1.93
SBIN 59403000 6.50 574.05 2.33
BHEL 130368000 3.07 73.90 13.08
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|October 29, 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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