Technical & Derivatives Report

July 28, 2020

Sensex (37935) / Nifty (11132) Exhibit 1: Nifty Daily Chart

Trading for the week started marginally higher owing to favorable

global cues. However, within a few moments, the lead disappeared
to decouple with global peers first. After this what we witnessed was
one of the rarest actions in our market. The Nifty and Bank Nifty
looked completely divergent. The direction was similar (downwards)
but the proportion of the decline was extremely wide. Looking at
Nifty, it appeared as if markets are consolidating with mildly
negative bias; but looking at banking index, it appeared as if there
is no tomorrow. Yes, many times we see Bank Nifty underperforming
the benchmark but yesterday’s divergence was something different.
Fortunately, Reliance and heavyweight IT counters were the saviors
in case of Nifty, otherwise, taking their contribution out, the Nifty
also would have closed with severe cuts.
At this juncture, traders are advised to stay light and should keep a
Now let’s dig into a bit of technicals. As far as Nifty is concerned, we close watch on above mentioned levels as well as scenarios. As of
continue to see 11050 as a sacrosanct support and till the time it now, our inclination is still on the positive side and hence, we remain
trades convincingly above it, there is no reason to worry. On the flip hopeful as long as key levels are successfully defended.
side, if this lead has to extend, the benchmark needs to stay beyond
11250, which would unfold the next leg of the rally. Meanwhile, the
range of 11250-11050 should be considered a consolidation band. Key Levels
Now, the breakout in either direction is solely dependent on how Support 1 – 11085 Resistance 1 – 11200
Bank Nifty performs over the next couple of days. If banking Support 2 – 11050 Resistance 2 – 11250
heavyweights extend their correction, the Nifty will see a breakdown;
whereas a breakout above 11250 is out of question without the
contribution of banking space.

Nifty Bank Outlook - (21849) Exhibit 2: Nifty Bank Daily Chart

The Banking index opened on a flat note in yesterday's session.
However, right from the word go the index started correcting and
within 15 minutes, the index was down significantly over previous
weeks close. It crept lower till the close and ended the session with
a loss of over 800 points.

Yesterday's move in the banking space was certainly unexpected

given the consolidation phase in Nifty. However, the price
corrected throughout the session with no pull back moves in
between. On the daily chart, the index is seen trading in a channel
with the lower end of the channel seen at 21500-21550 range.
Traders are advised to stay light on positions as of now and be
vigilant on how the index bechaves around the mentioned
support. The immediate resistance for the index are seen around
22250 and 22400.

Key Levels
Support 1 – 21550 Resistance 1 – 22250
Support 2 – 21500 Resistance 2 – 22400

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Comments Nifty Vs OI
 The Nifty futures open interest has decreased by 2.31% (`000) Openinterest Nifty
Bank Nifty futures open interest has increased by 0.49% 16,000 11300

as market closed at 11131.80 levels. 14,000

11200

 The Nifty July future closed with a discount of 9.35 point 11100
against a discount of 7.9 point in last trading session. The
12,000 11000
August series closed at a discount of 11.95 point. 10,000 10900
 The INDIA VIX has increased from 24.53 to 25.01 10800
8,000
At the same time, the PCR-OI of Nifty decreased from 10700
1.74 to 1.49. 6,000 10600
 Few of the liquid counters where we have seen high cost 4,000 10500
of carry are IDEA, RBLBANK, SUNTV, IBULHSGFIN AND 10400
SAIL. 2,000
10300
7/10 7/13 7/14 7/15 7/16 7/17 7/20 7/21 7/22 7/23 7/24 7/27
,0 10200

Views
The week started on a positive note however within few
OI Gainers

moments Index gave away the gains. Subsequently,
OI PRICE
Nifty traded in a range with mild negative bias to SCRIP OI PRICE
CHG. (%) CHG. (%)
eventually end with loss of 0.56% at 11131.80. JINDALSTEL 19315000 18.93 176.95 5.07
ESCORTS 3012900 18.52 1106.00 -2.20
 FIIs were net sellers in the cash market segment to the
CANBK 16365000 13.45 99.70 -4.06
tune of Rs. 453 crores. In index futures, they bought
BAJAJ-AUTO 1816500 12.11 3020.40 1.07
worth 500 crores with decrease in open interest
AMARAJABAT 1816000 11.41 684.75 -3.16
indicating short covering in yesterday’s session. RECLTD 20388000 10.36 100.85 -5.16
MUTHOOTFIN 4507500 9.89 1362.70 4.38
 In yesterday's session, Nifty corrected by half a percent
MINDTREE 1693600 9.69 1050.10 2.76
while Bank Nifty corrected by more than three and a
half percent. While Nifty witnessed some unwinding of
positions, Bank Nifty corrected due to a combination of
long unwinding and short formation. FII's were net OI Losers
OI PRICE
sellers in the cash segment while they unwinded some SCRIP OI PRICE
CHG. (%) CHG. (%)
of their index futures positions too. In options front, we
NCC 16359000 -15.78 29.85 -5.40
witnessed addition of open interest in 11200 call. The
RBLBANK 22170200 -14.46 178.80 -1.91
open interest position indicates a trading range of
CENTURYTEX 2517200 -13.85 298.20 -0.42
11000-11200 till expiry. Hence, traders are advised to
CUMMINSIND 1915200 -13.12 394.10 -0.09
trade with a stock specific approach in this
HDFCBANK 38784350 -9.90 1079.50 -3.02
consolidation.
JUSTDIAL 1246000 -9.00 369.80 0.07
GLENMARK 5483200 -7.70 425.40 0.15
BHEL 49686000 -7.47 36.20 -1.49

Historical Volatility Put-Call Ratio

SCRIP HV SCRIP PCR-OI PCR-VOL
M&MFIN 83.89 NIFTY 1.49 0.93
UJJIVAN 76.47 BANKNIFTY 0.63 0.88
ICICIBANK 64.52 RELIANCE 0.94 0.54
RECLTD 54.90 ICICIBANK 0.37 0.33
INDIGO 54.91 INFY 1.29 0.55

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July 28, 2020

FII Statistics for July 27, 2020 Turnover on July 27, 2020
Open Interest
No. of Turnover Change
Detail Buy Sell Net Instrument
Value Change Contracts ( in Cr. ) (%)
Contracts
(in Cr.) (%)
INDEX
5608.61 5108.69 499.92 127771 9518.16 (6.60) Index Futures 5,26,244 34821.78 1.60
FUTURES
INDEX
158486.64 158279.84 206.80 776856 59552.31 2.04 Index Options 1,53,96,734 10,46,624.18 17.85
OPTIONS
STOCK
32532.85 32680.65 (147.80) 1349456 92719.22 2.28 Stock Futures 14,96,870 1,03,492.11 21.65
FUTURES
STOCK
7550.68 7434.81 115.87 82899 5688.46 (7.73) Stock Options 17,33,296 1,34,054.15 -8.25
OPTIONS

Total 204178.78 203503.99 674.79 2336982 167478.15 1.28 Total 1,91,53,144 13,18,992.22 14.34

Nifty Spot = 11131.80

Bull-Call Spreads Bear-Put Spreads

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

Buy 11100 106.10 Buy 11100 82.90

47.45 52.55 11147.45 35.85 64.15 11064.15
Sell 11200 58.65 Sell 11000 47.05

Buy 11100 106.10 Buy 11100 82.90

77.00 123.00 11177.00 56.20 143.80 11043.80
Sell 11300 29.10 Sell 10900 26.70

Buy 11200 58.65 Buy 11000 47.05

29.55 70.45 11229.55 20.35 79.65 10979.65
Sell 10900 26.70
Sell 11300 29.10

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

Nifty Put-Call Analysis

5000,000

4500,000 Call Put

4000,000

3500,000

3000,000

2500,000

2000,000

1500,000

1000,000

500,000

,0
10500 10600 10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800

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July 28, 2020

Daily Pivot Levels for Nifty Constituents

Scrips S2 S1 PIVOT R1 R2
ADANIPORTS 293 301 306 314 319
ASIANPAINT 1,690 1,734 1,761 1,805 1,832
AXISBANK 418 425 436 443 455
BAJAJ-AUTO 2,896 2,958 2,997 3,059 3,097
BAJFINANCE 3,073 3,122 3,201 3,250 3,329
BAJAJFINSV 6,029 6,101 6,208 6,280 6,387
BPCL 434 446 456 468 479
BHARTIARTL 536 548 556 567 575
INFRATEL 188 191 194 197 200
BRITANNIA 3,711 3,744 3,795 3,829 3,880
CIPLA 636 644 659 668 683
COALINDIA 128 129 130 131 133
DRREDDY 3,899 3,957 4,021 4,080 4,144
EICHERMOT 20,146 20,342 20,596 20,792 21,046
GAIL 95 96 99 100 102
GRASIM 558 565 575 581 591
HCLTECH 666 684 694 712 722
HDFCBANK 1,058 1,069 1,086 1,097 1,114
HDFC 1,808 1,829 1,846 1,867 1,884
HEROMOTOCO 2,660 2,702 2,730 2,772 2,801
HINDALCO 152 155 158 160 163
HINDUNILVR 2,163 2,192 2,214 2,243 2,265
ICICIBANK 338 348 367 377 396
IOC 89 92 94 96 98
INDUSINDBK 493 500 512 519 531
INFY 906 927 940 961 974
ITC 192 194 197 200 203
JSW STEEL 197 202 205 210 214
KOTAKBANK 1,268 1,295 1,337 1,365 1,407
LT 886 895 905 914 924
M&M 582 588 594 600 606
MARUTI 5,877 5,960 6,011 6,095 6,146
NESTLEIND 17,123 17,236 17,326 17,440 17,529
NTPC 86 87 88 89 91
ONGC 79 80 81 82 83
POWERGRID 178 179 180 182 183
RELIANCE 2,090 2,123 2,161 2,194 2,232
SHREECEM 20,666 20,890 21,240 21,464 21,814
SBIN 182 185 189 191 196
SUNPHARMA 459 467 477 486 496
TCS 2,144 2,175 2,195 2,227 2,247
TATAMOTORS 99 101 103 104 106
TATASTEEL 341 347 350 356 360
TECHM 631 648 660 677 689
TITAN 1,018 1,030 1,051 1,063 1,084
ULTRACEMCO 3,727 3,794 3,847 3,914 3,967
UPL 431 438 448 455 464
VEDANTA 107 108 111 112 115
WIPRO 264 266 270 272 276
ZEEL 138 142 148 152 159

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 Technical & Derivatives Report
July 28, 2020

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

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

For Technical & Derivatives Queries E-mail: technicalresearch-cso@angelbroking.com

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