Technical & Derivatives Report

October 26, 2020

Sensex (40686) / Nifty (11930) Exhibit 1: Nifty Daily Chart

During the last week, our markets kick started the week on Monday
on a cheerful note. Although we could reclaim 12000 during the
week, the momentum was clearly lacking as the benchmark once
again looked a bit tentative around this. For index specific traders, it
was clearly a dull week as we witnessed a lot of choppy trades with
no clear direction. Eventually, the Nifty concluded the week with
more than a percent gains as compared to the previous week close.

Now, let’s dig into a bit of technicals and understand why 11650 –
11600 is considered to be a strong as well as crucial support zone.
If we connect all major highs from record highs in a descending
order, the trend line / pull back support comes around this level, 1) The ‘RSI-Smoothened’ for Nifty on weekly time frame chart has
which coincides with the 20-day EMA as well. Hence, as long as this started moving northwards after entering a bullish territory above
support is not violated, one should adopt a buy on dips strategy. A the 70 mark, which is likely to provide impetus, 2) After a long
close below 11650 – 11600 would result in a short term trend underperformance, banking started to show inherent strength and
reversal and hence, traders should start lightening up positions as we all know when financial starts participating in any rally; it is to
after it. Before this, intermediate supports are at 11820 – 11775. be considered the robust one.To add to our conviction, the ‘ADX
Now, we are tad below 12000 and if we have to pre-empt any 14’ indicator on the daily chart is moving northwards after
direction, we expect the Nifty to surpass 12000 – 12050 levels in surpassing the 25 mark. This development generally unfolds a big
coming days to head towards 12200 – 12400. If we are anticipating trended move, 3) The undercurrent is strong and we are seeing
this to happen then there has to be some technical evidences to different sectors participating one after another and the way
back this hypothesis and they are as follows: midcap index is poised, another percent up move from hereon
would confirm a strong breakout in ‘Nifty MIDCAP 50’ index. So,
considering all this, odds are very much in favor of the bulls. But
.Key Levels since we are approaching a mega global event (US Presidential
Support 1 – 11820 Resistance 1 – 12000
election), we may see some volatility increasing and hence, keep a
Support 2 – 11775 Resistance2 – 12050 regular tab of all above mentioned levels.

Nifty Bank Outlook - (24478) Exhibit 2: Nifty Bank Daily Chart

On Friday, Bank Nifty started on a positive note and then it
consolidated within a range throughout the session to end flat
tad below 24500 levels.

During the week gone by, the bank nifty outperformed as it

gained more than four percent however the index move was very
choppy after the initial strong upmove seen on Monday. Going
ahead, we continue to have a positive bias on the bank index
however we would rather prefer stock-specific action as they are
likely to give outperforming opportunity. As far as levels are
concerned, strong support is seen around 24200 and 24000
whereas immediate resistance is placed around 24800 and
25000 levels.

Key Levels
Support 1 – 24200 Resistance 1 – 24800
Support 2 – 24000 Resistance 2 – 25000

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October 26, 2020

Comments Nifty Vs OI
 The Nifty futures open interest has increased by 2.41% (`000) Openinterest Nifty
Bank Nifty futures open interest has increased by 5.91% 14,000 12100
as market closed at 11930.35levels. 12000
 The Nifty October future closed with a premium of 4.00 12,000
11900
point against a premium of 2.20 point in last trading
10,000 11800
session. The November series closed at a premium of
28.30 point. 8,000
11700

 The INDIA VIX has decreased from 22.64 to 21.83. 11600

At the same time, the PCR-OI of Nifty increased from 6,000
11500
1.34 to 1.47. 11400
4,000
 Few of the liquid counters where we have seen high
11300
cost of carry are IDEA, ICICIPRULI, APOLLOHOSP, PNB 2,000
and ONGC. 10/1 10/6 10/8 10/12 10/14 10/16 10/20 10/22 11200
,0 11100

Views
OI Gainers
OI PRICE
 We started-off the week on a cheerful note and saw SCRIP OI PRICE
CHG. (%) CHG. (%)
follow-up buying to reclaim 12000 mark. However, AMARAJABAT 1429000 29.67 761.00 1.87
buying interest was missing at the higher levels and IDEA 390180000 22.13 9.05 1.68
hence we saw index consolidating in the range of M&MFIN 23009364 21.27 134.70 1.43
250 points. Eventually, week concluded on a COFORGE 568125 18.54 2380.10 -3.51
positive note. INFRATEL 11368000 14.43 192.15 -1.71
HDFCLIFE 13322100 13.23 564.30 0.48
 FIIs were net buyers in the cash segment to the tune of
APOLLOTYRE 11755000 10.64 149.80 5.90
Rs. 907 crores. In index future segment, they sold
EXIDEIND 11203200 10.55 162.05 1.18
worth Rs. 601 crores with marginal change in open
interest, suggesting blend of long unwinding and short
formation on Friday’s session.
OI Losers
 Despite consolidation we saw addition of some fresh SCRIP OI
OI
PRICE
PRICE
CHG. (%) CHG. (%)
longs in the last week. The banking index once again
TORNTPOWER 2232000 -17.70 322.20 4.26
outperformed the benchmark index and concluded
IGL 5676000 -6.20 391.25 2.79
the week with the gains of 4%. Stronger hands
ULTRACEMCO 2042600 -6.06 4614.50 -0.62
preferred adding few shorts; however, the quantum
MRF 35210 -5.55 62250.65 1.90
remained insignificant. At present, 11750-12050 is
COLPAL 3085600 -5.16 1431.95 0.53
the immediate trading range and any move beyond KOTAKBANK 10855600 -5.13 1393.05 0.28
these levels may bring back the directional move. PETRONET 11586000 -4.64 235.60 4.87
IOC 55409700 -4.28 77.70 2.23

Historical Volatility Put-Call Ratio

SCRIP HV SCRIP PCR-OI PCR-VOL
NAUKRI 55.86 NIFTY 1.47 0.88
APOLLOTYRE 53.74 BANKNIFTY 0.86 0.90
BHARATFORG 63.22 RELIANCE 0.42 0.39
MARUTI 50.23 ICICIBANK 0.75 0.58
POWERGRID 37.66 INFY 0.42 0.57

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October 26, 2020

FII Statistics for October 23, 2020 Turnover on October 23, 2020
Open Interest
No. of Turnover Change
Detail Buy Net Contracts Instrument
Value Contracts ( in Cr. ) (%)
Sell Change
(in Cr.)
INDEX
2904.46 3505.85 (601.39) 147609 11954.97 (0.31) Index Futures 3,89,450 27210.08 -19.20
FUTURES
INDEX Index
126415.59 126379.98 35.61 840997 69004.08 10.78 1,29,52,262 9,41,939.85 -81.38
OPTIONS Options
STOCK
20485.25 20170.11 315.14 1115071 80860.75 (0.79) Stock Futures 10,07,299 74894.94 12.52
FUTURES
STOCK Stock
7232.17 7203.31 28.86 105538 8244.06 0.55 14,99,161 1,20,429.82 4.91
OPTIONS Options
Total 157037.47 157259.25 (221.78) 2209215 170063.86 3.42 Total 1,58,48,172 11,64,474.69 -77.92

Nifty Spot = 11930.35

Bull-Call Spreads Bear-Put Spreads

Action Strike Price Risk Reward BEP Action Strike Price Risk Reward BEP

Buy 11900 120.60 Buy 11900 84.25

50.10 49.90 11950.10 33.85 66.15 11866.15
Sell 12000 70.50 Sell 11800 50.40

Buy 11900 120.60 Buy 11900 84.25

84.60 115.40 11984.60 54.60 145.40 11845.40
Sell 12100 36.00 Sell 11700 29.65

Buy 12000 70.50 Buy 11800 50.40

34.50 65.50 12034.50 20.75 79.25 11779.25
Sell 11700 29.65
Sell 12100 36.00

Note: Above mentioned Bullish or Bearish Spreads in Nifty (October Series) are given as an information and not as a recommendation.

Nifty Put-Call Analysis

5000,000
Call Put
4500,000

4000,000

3500,000

3000,000

2500,000

2000,000

1500,000

1000,000

500,000

,0
11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300 12400 12500

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October 26, 2020

Daily Pivot Levels for Nifty Constituents

Scrips S2 S1 PIVOT R1 R2
ADANIPORTS 352 358 364 370 375
ASIANPAINT 2,082 2,101 2,115 2,134 2,149
AXISBANK 498 503 509 514 520
BAJAJ-AUTO 2,960 3,021 3,058 3,119 3,157
BAJFINANCE 3,272 3,294 3,326 3,348 3,379
BAJAJFINSV 5,734 5,783 5,872 5,921 6,011
BPCL 346 349 352 355 358
BHARTIARTL 423 429 433 439 443
BRITANNIA 3,411 3,440 3,472 3,501 3,532
CIPLA 743 750 762 770 782
COALINDIA 115 117 117 119 119
DIVISLAB 3,010 3,040 3,092 3,121 3,173
DRREDDY 4,940 4,979 5,035 5,074 5,130
EICHERMOT 2,142 2,162 2,180 2,200 2,219
GAIL 86 86 88 89 90
GRASIM 769 777 790 799 812
HCLTECH 835 844 860 868 884
HDFCBANK 1,221 1,229 1,238 1,246 1,256
HDFCLIFE 547 556 568 577 589
HDFC 2,036 2,048 2,058 2,070 2,080
HEROMOTOCO 3,055 3,083 3,118 3,146 3,181
HINDALCO 179 180 184 185 188
HINDUNILVR 2,109 2,126 2,158 2,175 2,206
ICICIBANK 408 412 416 421 425
IOC 77 78 78 79 80
INDUSINDBK 597 602 610 616 623
INFY 1,111 1,117 1,126 1,132 1,141
ITC 167 169 170 172 173
JSW STEEL 315 318 323 326 330
KOTAKBANK 1,360 1,372 1,390 1,401 1,419
LT 919 930 939 951 960
M&M 597 611 620 634 642
MARUTI 6,727 6,915 7,020 7,208 7,313
NESTLEIND 15,654 15,760 15,913 16,019 16,172
NTPC 84 85 86 87 88
ONGC 68 69 69 70 70
POWERGRID 162 166 169 173 175
RELIANCE 2,076 2,095 2,115 2,133 2,153
SBILIFE 753 762 776 785 799
SHREECEM 19,668 20,095 20,684 21,110 21,699
SBIN 199 201 203 205 207
SUNPHARMA 476 480 487 492 499
TCS 2,654 2,671 2,686 2,703 2,718
TATAMOTORS 132 134 137 139 141
TATASTEEL 407 415 421 429 434
TECHM 823 835 846 859 870
TITAN 1,224 1,233 1,240 1,249 1,257
ULTRACEMCO 4,391 4,448 4,545 4,602 4,699
UPL 445 448 453 456 462
WIPRO 338 340 344 346 349

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 Technical & Derivatives Report
October 26, 2020

Technical and Derivatives Team:

Sameet Chavan Chief Analyst - Technical & Derivatives [email protected]

Ruchit Jain Senior Analyst - Technical & Derivatives [email protected]

Rajesh Bhosale Technical Analyst [email protected]

Sneha Seth Derivatives Analyst [email protected]

Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com

For Technical Queries E-mail: [email protected]

For Derivatives Queries E-mail: [email protected]

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