Technical & Derivatives Report Sensex (38018) / Nifty (11477) Exhibit 1: Nifty Daily Chart The mayhem continued for the third day as the concerns started to mount further after Indian Rupee continued its weakness sharply towards the 72 mark against the US Dollar. This was supported by some nervousness in major Asian peers, resulted into Nifty testing the sub-11400 mark. Things were looking extremely bleak at one point of time; but, fortunately, we had a vshaped recovery in the final hour of the trade, which relieved most of the traders as the index managed to pare down major portion of losses. Due to this late recovery, the daily chart now looks a bit encouraging. We can observe a bullish hammer pattern on daily chart, which itself suggests a smart buying at lower levels and now would require a follow up buying to activate the pattern. Hence, going ahead, it would be important to see how market behaves in the first half. If Nifty manages to stay above 11500 11515, which we believe would, then this may most likely would trigger further recovery and in this case, 11530 11580 can be retested. In fact, this price action then would lead to a resumption of recent uptrend. On the downside, 11430 and 11393 would play a major role; because, holding of these supports would provide some base to start the next leg of the rally. Directionally, we still believe we are in buy on dips kind of market; but with a momentum perspective, all these above mentioned scenarios need to be observed meticulously. Yesterday, the Metal sector once again stood out to be an outshining sector and hence, one should focus on this universe which is poised for decent moves. Nifty Bank Outlook - (27376) Apart from this, the Nifty Midcap 50 index had a remarkable recovery after taking some brutal beating in last couple of days. The closing was quite promising and hence, it would be important to keep a close eye on this development as well. Key Levels Support 1 11430 Resistance 1 11500 Support 2 11393 Resistance 2 11530 Exhibit 2: Nifty Bank Daily Chart Post opening marginally negative, the Nifty Bank index continued the sell-off in line with last couple of day's momentum. However, unlike the previous two days, the index witnessed buying interest at lower levels and recovered sharply in the last hour of trade to end the session with a minor loss. During the correction in yesterday's session, the RSI oscillator on the hourly chart was in deep oversold territory at one point of time. Usually, such oversold momentum setups lead to a pullback move which was seen during the last hour. With several private sector banks trading at their support, the index should witness a continuation of this pullback move. Thus, swing traders can trade with a positive bias in selective stocks within the sector. However, the earlier support range breached would now act as resistance on pullback and hence, traders should also look to book profits on up move and follow a proper risk management strategy. The intraday supports for the index are placed around 27265 and 27136 whereas resistances are seen around 27540 and 27740. Key Levels Support 1 27265 Resistance 1 27540 Support 2 27136 Resistance 2 27740
Comments The Nifty futures open interest has increased by 5.30% Bank Nifty futures open interest has decreased by 6.44% as market closed at 11476.95 levels. The Nifty September future closed with a premium of 41.30 points against a premium of 52.80 points in last trading session. The October series closed at a premium of 80.90 points. The INDIA VIX has decreased from 13.78 to 13.65. At the same time, the PCR- of Nifty has decreased from 1.45 to 1.37. Few of the liquid counters where we have seen high cost of carry are GRANULES, SOUTHBANK, JPASSOCIAT, RCOM and MANAPPURAM. Nifty Vs Views FIIs were net sellers in cash market segment to the tune of Rs. 384 crores. At the same time, they sold worth Rs. 2328 crores in index futures with rise in open interest, indicating short formation in yesterday s trading session In options front, they bought significantly of Rs. 4400 crores with rise in open interest. As far as Nifty options activities are concerned, we saw huge open interest addition in 11500 and 11600 call options. On the flip side, 11400 put options added fresh build-up; followed by unwinding in 11600 and 11700 strikes. Maximum open interest for September series is placed at 11800 followed by 12000 call and 11400 followed by 11500 put options. The fall continued for third consecutive session; but yesterday in the final hour of trade we saw sharp recovery from sub-11400 to concluded tad above 11450 mark. Meanwhile, we saw addition of mixed positions in index futures. In options segment, hardly any unwinding in ATM puts was visible. Yesterday, 11400 acted as a strong support and looking at the options activity we see limited downside from here onwards. Thus, traders are advised forming longs for the immediate target of 11600. Gainers BEL 47841750 54.99 94.45-13.26 MUTHOOTFIN 3214500 47.49 436.80 9.31 BALKRISIND 2898400 29.30 1165.75-0.77 TORNTPHARM 750500 13.63 1735.75-1.05 KPIT 9072000 11.81 309.15 3.01 BATAINDIA 1600500 10.48 1057.20 2.24 MINDTREE 4402800 9.39 1150.90 2.89 L 3368409 9.14 204.70-2.26 Losers HEXAWARE 5680500-12.62 439.65 2.68 RELINFRA 8378500-7.90 479.55 5.54 IRB 15075000-6.71 177.30 3.13 AMARAJABAT 1040200-6.60 815.55-0.69 IGL 4950000-6.40 272.40-2.99 APOLLOHOSP 1366500-6.05 1135.75-4.25 COLPAL 1699600-6.00 1141.65-0.20 BERGEPAINT 2125200-5.76 318.70-0.38 Historical Volatility HV BEL 80.53 MUTHOOTFIN 50.12 INFRATEL 30.76 ENGINERSIN 51.04 BIOCON 41.62 Put-Call Ratio PCR- PCR-VOL NIFTY 1.37 0.92 BANKNIFTY 0.65 0.74 RELIANCE 0.42 0.60 ICICIBANK 0.48 0.77 INFY 0.56 0.56
FII Statistics for September 05, 2018 Turnover on September 05, 2018 Detail Buy Sell Net Contracts Open Interest Value (in Cr.) Change (%) 3746.60 6074.96 (2328.36) 267024 23116.23 15.26 171793.21 167393.50 4399.70 807937 72303.37 11.94 15427.55 15742.06 (314.51) 1125458 85032.63 0.79 9709.37 9741.55 (32.18) 96922 7341.81 3.39 Instrument No. of Contracts Turnover ( in Cr. ) Change (%) 281291 26818.55 11.75 11323743 1201748.83 39.61 953941 68080.80-3.50 772479 60773.16-2.07 Total 200676.73 198952.07 1724.66 2297341 187794.04 6.17 TOTAL 13331454 1357421.34 33.42 Nifty Spot = 11476.95 Bull-Call Spreads Action Strike Price Risk Reward BEP Bear-Put Spreads Action Strike Price Risk Reward BEP Buy 11500 141.50 Sell 11600 90.60 50.90 49.10 11550.90 Buy 11500 126.70 Sell 11400 90.90 35.80 64.20 11464.20 Buy 11500 141.50 Sell 11700 55.10 86.40 113.60 11586.40 Buy 11500 126.70 Sell 11300 64.75 61.95 138.05 11438.05 Buy 11600 90.60 Sell 11700 55.10 35.50 64.50 11635.50 Buy 11400 90.90 Sell 11300 64.75 26.15 73.85 11373.85 Note: Above mentioned Bullish or Bearish Spreads in Nifty (September 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 364 372 376 384 388 ASIANPAINT 1,290 1,306 1,318 1,333 1,345 AXISBANK 623 630 639 646 654 BAJAJ-AUTO 2,705 2,739 2,759 2,793 2,814 BAJFINANCE 2,620 2,668 2,717 2,765 2,813 BAJAJFINSV 6,330 6,416 6,488 6,574 6,646 BPCL 340 344 350 355 360 BHARTIARTL 360 366 372 378 384 INFRATEL 260 266 275 280 290 CIPLA 631 639 645 653 659 COALINDIA 269 273 277 281 284 DRREDDY 2,487 2,527 2,559 2,599 2,630 EICHERMOT 28,385 28,720 28,935 29,270 29,485 GAIL 347 354 362 369 377 GRASIM 999 1,014 1,023 1,037 1,046 HCLTECH 1,059 1,069 1,078 1,088 1,097 HDFCBANK 2,023 2,034 2,047 2,059 2,072 HDFC 1,900 1,919 1,942 1,961 1,984 HEROMOTOCO 3,092 3,119 3,161 3,188 3,231 HINDALCO 228 234 237 243 247 HINDPETRO 241 244 248 252 255 HINDUNILVR 1,567 1,589 1,618 1,641 1,670 IBULHSGFIN 1,157 1,188 1,209 1,240 1,260 ICICIBANK 322 326 329 332 335 IOC 149 151 152 154 156 INDUSINDBK 1,808 1,832 1,848 1,871 1,888 INFY 714 722 733 741 752 ITC 306 308 311 313 317 KOTAKBANK 1,206 1,222 1,244 1,260 1,282 LT 1,329 1,338 1,351 1,361 1,374 LUPIN 877 890 908 921 939 M&M 899 914 930 945 960 MARUTI 8,720 8,808 8,879 8,967 9,038 NTPC 164 166 168 170 172 ONGC 169 171 173 176 177 POWERGRID 191 193 195 198 199 RELIANCE 1,185 1,206 1,229 1,250 1,274 SBIN 287 292 295 300 304 SUNPHARMA 645 654 663 672 681 TCS 2,055 2,067 2,087 2,099 2,119 TATAMOTORS 249 258 264 273 280 TATASTEEL 575 585 591 601 607 TECHM 745 756 768 778 790 TITAN 835 850 866 880 897 ULTRACEMCO 4,028 4,094 4,172 4,238 4,316 UPL 669 683 698 712 727 VEDANTA 217 223 227 233 236 WIPRO 312 316 318 321 323 YESBANK 328 336 340 348 353 ZEEL 468 475 485 492 502
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