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|November 18, 2022
Market had a lull week; undertone remains bullish
Sensex (61663) / Nifty (18308)
Source: Tradingview.com
Future outlook
Market had a mild start to the new trading week post the strong closure from its previous week’s rally and managed to withhold at
the higher grounds. After the initial up moves, the index slipped into a consolidation zone for the rest of the trading week and kept
hustling in a slender range of 200 odd points. By the weekend, a sell-off triggered in the broader market, which dragged the
benchmark index lower, but bulls retaliated well to safeguard the support zone and concluded the week with a mere cut of 0.23
percent. With the weekly closure, Nifty snapped its four weeks of winning streak and settled a tad above the 18300 level.
It has been a lackluster week for the market participants as the follow-up buying was clearly missing to uplift the market, and this
resulted in a lull movement in the benchmark index. Global concerns over rising inflation have led to mixed action, mirroring which
our market remained tentative at the higher levels. On the technical front, the structure remains upbeat. As far as levels are
concerned, the bullish gap of 18100-18250 is likely to provide a cushion to any intra-week blip, and it is highly anticipated that the
dip would augur well for the bulls. On the flip side, the 18450-18500 is a significant hurdle for the bulls, and any decisive breach
above the same could only trigger a fresh round of rally in the market. Meanwhile, the market awaits some trigger points to have an
upsurge, and in the meantime, the index is expected to remain in the mentioned range.
We remain sanguine with the up trend and would advocate the traders to utilize the dips to add long position in the index. Also,
despite the lethargic moves in the index throughout the week, some of the individual pockets kept buzzing. Hence, we expect some
interesting moves to unfold in a larger pool of stocks, which is likely to provide better opportunities for momentum traders. We
advise traders to stay with a similar buy on decline strategy till the time important supports are held comfortably.
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|November 18, 2022
Short Formation
FIIs remained steady with their bullish bet
Nifty spot closed at 18307.65 this week, against a close of 18349.70 last week. The Put-Call Ratio has decreased from 1.21 to 0.89 on
Weekly basis. The annualized Cost of Carry is positive at 16.03%. The Open Interest of Nifty Futures decreased by 4.58%.
Derivatives View
Nifty current month’s future closed with a premium of 48.25 against a premium of 74.30 points to its spot in the previous week.
Next month’s future is trading at a premium of 135.25 points.
The Indian equity market witnessed a lackluster week of trade, wherein the benchmark index Nifty50 stayed in a slender range
throughout the week. The index has witnessed some long unwinding over the week and concluded the week with a mere cut of 0.23
percent. Looking at the F&O data, we have witnessed a mixed trade in both indices. On the options front, the piling up of positions is
visible in the 18200-18300 put strike, indicating nearby support formation for Nifty. While on the higher end, the OI concentration is
now visible in the 18400 call strike, followed by 18500 CE, signifying stiff resistance for Nifty. Simultaneously, the stronger hands
have remained steady with their bullish bets as the ‘Long Short Ratio’ slightly expanded to 65% from 62% 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(%)
METROPOLIS 1345600 77.05 1451.05 (8.48)
POLYCAB 1281900 47.91 2542.10 (6.28)
MFSL 3363100 43.52 664.35 (4.06)
PVR 3539272 31.00 1736.10 (5.11)
ICICIPRULI 11334000 26.42 471.75 (3.97)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
ONGC 52656450 40.21 142.50 1.32
HEROMOTOCO 3045000 17.33 2710.15 1.62
JKCEMENT 539750 13.04 2929.70 3.29
EXIDEIND 31147200 12.03 184.95 7.72
GAIL 65697000 11.59 90.85 1.85
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|November 18, 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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