Sensex (35557) / Nifty (10807) Exhibit 1: Nifty Daily Chart Our markets witnessed a flat opening as indicated by SGX Nifty. Subsequently, Index traded cautiously in a very narrow range ahead of Karnataka election results and ended flat at 10807. Following the breakout witnessed on Friday above the 10800 level, Index witnessed a lackluster session and ended forming a 'Spinning Top' formation on the daily chart. The said pattern indicates lack of momentum and can be taken as the lull before the storm. Going ahead, we sense the volatility to increase on the event day and Index may witness wild swings on both sides. Traders are hence advised to avoid taking undue risk and should trade with proper exit setup. As far as levels are concerned, resistance is placed around 10860 and 10900; whereas support is placed around 10740-10680 levels. We will have a wait and watch approach and post-event will re-assess the chart for identifying the next move. Key Levels Support 1 10740 Resistance 1 10860 Support 2 10680 Resistance 2 10900 Nifty Bank Outlook - (26475) Exhibit 2: Nifty Bank Daily Chart The Nifty Bank index started the week on a flat note and traded with a positive bias to end the day with marginal gains of 0.23 percent. Although the index witnessed marginal gains, it has continued to outperform the broader markets as the overall market breadth yesterday was much negative. As mentioned in our earlier report, the heavyweights within the banking sector have shown outperformance in the recent past which has led to the positive momentum in the index as well. Hence, we continue with our advice for traders to be specific in picking stocks and ride the trend with the outperformers. Since the outcome of the Karnataka elections today could lead to some volatility, one should trade with proper money management strategies. The intraday supports for the Nifty Bank index are placed around 26338 and 26265 whereas resistance is seen around 26780. Key Levels Support 1 26338 Resistance 1 26660 Support 2 26265 Resistance 2 26780
Comments The Nifty futures open interest has decreased by 1.71% BankNifty futures open interest has decreased by 1.45% as market closed at 10806.50 levels. The Nifty May future closed with a premium of 8.10 points against a premium of 13.60 points in last trading session. The June series closed at a premium of 15.35 points. The INDIA VIX has increased from 13.97 to 14.24. At the same time, the PCR- of Nifty has decreased from 1.66 to 1.64 level. Few of the liquid counters where we have seen high cost of carry are DISHTV, RCOM, BALKRISIND, RNAVAL and IRB. Nifty Vs Views After quite some time, FIIs were net buyers in cash market segment to the tune of Rs. 718 crores. In index futures front, they bought of Rs. 201 crores with rise in, indicating formation of fresh longs on Monday s session. In index options front, they were sellers of Rs. 1358 crores with rise in open interest. As far as Nifty options activities are concerned, we saw build-up in 10900-11100 call options. On the other side, 10700-10800 put option added good amount of positions. The highest open interest concentration for current series stands firmly at 11000 call and 10500 put options. The benchmark Nifty remained range-bound one day prior to Karnataka election verdict and concluded the session on a flat note. In index futures, we saw long unwinding in Nifty as well as BankNifty. At present, the volatility index is trading near the comfort zone despite an important event, thus, indicating there is no panic kind of situation. Considering the above data points, we don t expect any major move in today s session. Hence, traders can prefer writing At-The-Money call and put options for this week. Gainers TATAGLOBAL 25341750 15.45 255.90-11.51 ESCORTS 4525400 10.53 939.55-0.80 SUNTV 6372000 9.56 963.25 10.46 CANBK 12119200 9.39 249.35 1.42 ASHOKLEY 64334000 8.52 155.15-4.24 PIDILITIND 1497000 8.24 1102.10-0.19 ADANIPORTS 15935000 8.16 409.95-1.28 PCJEWELLER 8869500 7.16 177.70-11.39 Losers ORIENTBANK 17520000-28.79 84.65 2.41 GLENMARK 6090700-22.35 503.40-2.10 INDIGO 3733800-8.39 1187.65 2.01 NIITTECH 2682000-7.84 1069.55 0.99 POWERGRID 28344000-6.57 209.05 0.58 IGL 7755000-5.62 269.45 0.97 INDIANB 4144000-5.26 313.30-1.38 FEDERALBNK 87499500-4.92 89.90-0.39 Historical Volatility HV TATAGLOBAL 64.87 SUNTV 57.71 SUZLON 65.64 ADANIPOWER 64.00 RNAVAL 112.99 Put-Call Ratio PCR- PCR-VOL NIFTY 1.64 1.12 BANKNIFTY 1.10 0.96 INFY 0.65 0.39 ICICIBANK 1.39 0.92 TATAMOTORS 0.48 0.47
FII Statistics for May 14, 2018 Turnover on May 14, 2018 Detail Buy Sell Net Contracts Open Interest Value (in Cr.) Change (%) 1584.00 1383.15 200.85 209892 17867.05 2.14 48423.56 49782.10 (1358.54) 856531 71915.82 4.52 8913.42 8795.50 117.93 1210369 84232.19 0.82 6002.94 5997.07 5.86 125532 8848.55 1.54 Instrument No. of Contracts Turnover ( in Cr. ) Change (%) 183319 16542.37 16.29 3081986 288954.10-72.52 706944 45415.34-1.09 539190 36199.80 5.38 Total 64923.91 65957.82 (1033.90) 2402324 182863.60 2.27 TOTAL 4511439 387111.61-66.22 Nifty Spot = 10806.60 Lot Size = 75 Bull-Call Spreads Action Strike Price Risk Reward BEP Bear-Put Spreads Action Strike Price Risk Reward BEP Buy 10700 130.40 Sell 10800 78.10 52.30 47.70 10752.30 Buy 10800 118.15 Sell 10700 84.20 33.95 66.05 10766.05 Buy 10700 130.40 Sell 10900 41.20 89.20 110.80 10789.20 Buy 10800 118.15 Sell 10600 59.15 59.00 141.00 10741.00 Buy 10800 78.10 Sell 10900 41.20 36.90 63.10 10836.90 Buy 10700 84.20 Sell 10600 59.15 25.05 74.95 10674.95 Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation. Nifty Put-Call Analysis
Daily Pivot Levels for Nifty Constituents Scrips S2 S1 PIVOT R1 R2 ADANIPORTS 404 407 410 414 417 ASIANPAINT 1,254 1,276 1,290 1,312 1,327 AXISBANK 541 547 553 558 564 BAJAJ-AUTO 2,767 2,800 2,825 2,857 2,882 BAJFINANCE 1,823 1,844 1,864 1,885 1,905 BAJAJFINSV 5,286 5,336 5,371 5,421 5,455 BPCL 394 399 405 410 416 BHARTIARTL 369 376 385 392 401 INFRATEL 307 312 317 322 328 CIPLA 567 573 577 582 586 COALINDIA 264 267 270 273 276 DRREDDY 1,993 2,006 2,024 2,037 2,055 EICHERMOT 30,034 30,265 30,607 30,838 31,181 GAIL 339 342 344 346 348 GRASIM 1,083 1,092 1,099 1,108 1,115 HCLTECH 911 918 928 935 945 HDFCBANK 2,006 2,014 2,021 2,029 2,036 HDFC 1,912 1,921 1,929 1,938 1,946 HEROMOTOCO 3,612 3,630 3,643 3,661 3,673 HINDALCO 237 240 242 245 247 HINDPETRO 309 315 323 329 336 HINDUNILVR 1,479 1,491 1,506 1,518 1,533 IBULHSGFIN 1,186 1,201 1,226 1,241 1,266 ICICIBANK 303 307 309 312 315 IOC 164 166 170 172 176 INDUSINDBK 1,874 1,895 1,906 1,927 1,939 INFY 1,162 1,176 1,184 1,197 1,205 ITC 279 282 285 287 290 KOTAKBANK 1,240 1,256 1,272 1,288 1,304 LT 1,364 1,373 1,386 1,395 1,408 LUPIN 733 744 760 771 787 M&M 835 844 859 868 883 MARUTI 8,646 8,677 8,718 8,749 8,790 NTPC 163 167 170 174 177 ONGC 183 185 187 189 191 POWERGRID 204 207 208 211 212 RELIANCE 970 978 985 993 1,000 SBIN 245 249 253 257 260 SUNPHARMA 462 468 478 484 494 TCS 3,378 3,406 3,438 3,466 3,499 TATAMOTORS 317 320 327 330 337 TATASTEEL 597 603 609 616 622 TECHM 653 660 665 672 677 TITAN 888 904 933 949 978 ULTRACEMCO 4,007 4,057 4,106 4,156 4,205 UPL 716 722 731 737 746 VEDANTA 276 279 284 287 291 WIPRO 268 270 272 274 276 YESBANK 337 341 347 351 358 ZEEL 557 567 582 592 607
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