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Nifty soared a percent to settle around 18700
Sensex (62868) / Nifty (18696)
Source: Tradingview.com
Future outlook
The Indian market had a splendid start to the week, with the benchmark index Nifty50 clocking new highs. The bullish momentum
carried throughout the week, with Nifty being on a roll of achieving new heights daily. However, the stellar run of the eight
consecutive days came to a halt ahead of the weekend as Nifty snapped its winning streak and took a breather. All in all, it has been
an unprecedented move wherein the broader market also participated in levitating the sentiments. With the weekly closure, Nifty
surged nearly a percent and settled a tad below the 18700 level.
Technically speaking, the chart structure construes a positive development, with the indices being in a cycle of higher highs – higher
lows. Even the global relief of the Fed to temper its aggressive interest rate hike has provided a significant thrust to the equities
across the globe, mirroring which our market continued to soar northwards. Alongside the broader participation from the small and
midcap counters can be seen as a sign of progression in such market conditions. As far as levels are concerned, 18500 is expected to
act as the sacrosanct support for the index. While on the higher end, the swing high of 18900 odd zone is expected to provide some
intermediate resistance, followed by the psychological mark of 19000 in the near term.
We remain sanguine with the up trend and would advocate the traders to utilize the dips to add long position in the index. Also, we
expect strong moves outside the indices as the midcap space has witnessed a multi-month breakout and could unfold a new leg of
rally in the comparable period. Simultaneously, one should stay abreast with global and domestic developments on a regular basis
and continue with a similar buy on decline strategy till the time important supports are held comfortably.
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ion
Market surged amid encouraging F&O data
Nifty spot closed at 18696.10 this week, against a close of 18512.75 last week. The Put-Call Ratio has decreased from 1.18 to 0.94 on
Weekly basis. The annualized Cost of Carry is positive at 8.42%. The Open Interest of Nifty Futures increased by 5.33%.
Derivatives View
Nifty current month’s future closed with a premium of 116.45 against a premium of 133.35 points to its spot in the previous week.
Next month’s future is trading at a premium of 223.75 points.
Our domestic market has seen a splendid week, wherein the benchmark index Nifty50 surged nearly a percent to settle near the
18700 level. During the week, we observed a good amount of long addition in both the key indices, barring the last two sessions
where some unwinding has happened. A decent amount of inflows from the FIIs have been seen throughout in cash and derivative
segment and continued their bullish bets in the market. The ‘Long short Ratio’ have slightly contracted based on the last session of
profits booking to 66% from 71% at the start of the week. On the options front, the piling up of positions is seen at 18700-18500 put
strikes, signifying nearby support. On the flip side, 18800-19000 call strikes have witnessed a good amount of OI concentration,
indicating intermediate resistance as well. Overall, the mentioned data remains positive, and hence we advocate utilizing intraweek
declines to add bullish bets in the index.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
LAURUSLABS 9014100 38.61 426.90 (7.19)
ABB 1965500 29.54 3000.45 (3.34)
EICHERMOT 3648225 24.65 3340.55 (2.76)
GNFC 7088900 19.45 601.05 (2.00)
COALINDIA 32020800 17.98 228.40 (2.14)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
UBL 1203200 58.15 1749.65 4.68
SRTRANSFIN 5919600 43.48 1286.00 2.08
OFSS 636200 29.63 3244.95 5.32
GUJGASLTD 5285000 25.61 519.65 5.34
ABCAPITAL 35850600 24.26 152.55 11.59
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Sameet Chavan
C
hief An
alyst
–
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.krisha[email protected]
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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