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Review
|November 11, 2022
Nifty at 52-week high, IT comes out of a slumber phase
Sensex (61795) / Nifty (18350)
Source: Tradingview.com
Future outlook
We started off on a positive note on Monday; but with some intraday swings on both sides, Nifty managed to reclaim 18200 on the
same day. This was followed by a lull patch of nearly two days during which markets looked a bit tentative at higher levels. However,
the global markets made a strong comeback with a bang on Thursday after cooling off an Inflation number. This resulted in reversing
the tide for the biggest underperforming heavyweight space like, IT (NASDAQ). With stellar rally in US bourses, the global sentiments
just got lifted overnight among the market participants. The rub off effect of the same was visible in our domestic market on Friday
as we not only opened with a strong bump up but also managed to extend gains towards the 18350 mark.
The benchmark index Nifty added more than a percent this week and, in the process, it has now closed at highest level in the
calendar year. We are not surprised with this move as we have been quite vocal on how strong our markets are and soon, we would
see BANKNIFTY crossing 42000 to mark new highs. The banking index has finally achieved this milestone and soon we would see
Nifty following these footsteps. Technically speaking, the price configuration looks promising, because Nifty finally managed to
surpass the multiple times tested trendline resistance above 18200 – 18000 with some authority. For the coming week, 18200 –
18000 would now be seen as a sacrosanct support zone, whereas on the flipside, testing 18450 and 18600 is clearly on cards. In fact,
if momentum persists, we will see Nifty clocking fresh record high in the coming week itself. Till now, most of the other
heavyweights have been driving markets higher but with IT space coming out of its long slumber phase, the rally is likely to be robust
in nature.
The broader end of the spectrum has been quiet all this while; but the way NIFTY MIDCAP50 index is placed, we will not be surprised
to see it breaking its shackles quite soon. Hence, traders should brace themselves up for a good stock specific treat in the near
future.
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|November 11, 2022
Short Formation
FIIs long short ratio now at 62%
Nifty spot closed at 18349.70this week, against a close of 18117.15 last week. The Put-Call Ratio has increased from 1.12 to 1.21 on
Weekly basis. The annualized Cost of Carry is positive at 11.37%. The Open Interest of Nifty Futures increased by 6.97%.
Derivatives View
Nifty current month’s future closed with a premium of 74.30 against a premium of 76.85 points to its spot in the previous week.
Next month’s future is trading at a premium of 164.75 points.
The Indian equity market witnessed a splendid start to the week, as the benchmark index reclaimed the 18200 mark on Monday but
witnessed some profit taking on the following day especially the weekly expiry session wherein index even tested the psychological
mark of 18000. Fortunately, we had a bumped up opening on the final day and index not only maintained the positive posture but
also clocked 52-weeks high to conclude the week tad around 18350. There has been addition of longs on a net basis especially
banking index added huge longs as open interest surged 28% WoW. On the options front, the piling up of positions is visible in the
18200-18300 put strikes, indicating nearby support formation for Nifty. While on the higher end, the OI concentration is now visible
in 19000 call strike. Simultaneously, the stronger hands have remained steady with their bullish bets as the ‘Long Short Ratio’ slightly
expanded to 62% from 58% on WoW basis. Going ahead, the undertone is likely to remain bullish, and any intra-week dip could be
seen as an opportunity to add long bets in the index.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
DIVISLAB 3993600 90.72 3291.30 (12.46)
GNFC 9813700 79.40 605.10 (14.80)
RAMCOCEM 5651650 75.44 643.00 (11.64)
MRF 87210 72.05 85886.45 (6.19)
DEEPAKNTR 2533250 60.28 2104.75 (9.28)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
MANAPPURAM 43986000 51.97 109.10 4.70
INTELLECT 5479750 33.15 447.15 2.95
PIIND 1959500 17.72 3451.40 4.07
COALINDIA 35880600 14.76 252.75 2.93
BRITANNIA 1917800 14.66 4117.50 7.58
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|November 11, 2022
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.krishan@angelone.in
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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