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Nifty adieu 2022 with gains of over 4%; settled a tad above 18100
Sensex (60841) / Nifty (18105)
Source: Tradingview.com
Future outlook
Our market has witnessed a pleasant move through the week post the havoc from the previous week. The firm recovery from the
lows of 17800 showcased the resilience of the bulls and made a merry Santa rally to close the year on a cheerful note. The
benchmark index Nifty50 snapped three consecutive weeks of sell-off and concluded the week with gains of over 1.60 percent. Nifty
had a subtle closure to the calendar year 2022, procuring over 4 percent to settle a tad above the 18100 level.
Technically speaking, post the recent price-wise correction in the market, the chart structure construes optimism, and it is highly
anticipated to continue the cheerful run in the new calendar year. The broad-based buying in the last week has levitated market
sentiments and can be seen as a sign of progression as we outclass our major global peers. As far as levels are concerned, 18000 is
expected to cushion any short-term blip, with the sacrosanct support placed around 17800 for the time being. While on the higher
end, a decisive move above 18400-18450 would affirm the continuation of the uptrend in the market.
Going forward, we remain sanguine with the current momentum and would advocate the traders to utilize the dips to add long
positions in the index in the comparable period. Simultaneously, one should stay abreast with global and domestic developments
regularly and continue with a buy on decline strategy for the time being. Also, we expect strong moves in the broader market, so
one needs to have a stock-centric approach for better trading opportunities.
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Sho
rt Format
ion
Nifty surged on back of encouraging F&O data
Nifty spot closed at 18105.30 this week, against a close of 17806.80 last week. The Put-Call Ratio has increased from 0.72 to 0.88 on
Weekly basis. The annualized Cost of Carry is positive at 7.87%. The Open Interest of Nifty Futures decreased by 14.95%.
Derivatives View
Nifty current month’s future closed with a premium of 101.55 against a premium of 166.50 points to its spot in the previous week.
Next month’s future is trading at a premium of 185.45 points.
Our market witnessed the Santa rally to snap its losing streak, wherein the benchmark index Nifty50 surged nearly 1.70 percent on
the last trading week of the calendar year 2022 to conclude on an optimistic note and settle well above the 18100 level. In the F&O
segment, we witnessed a short covering rally in both indices for the major part of the week. The stronger hands also preferred to
unwind shorts in the system, resulting in the expansion of the ’Long Short Ratio’, which surged to 50% from 44% on a weekly basis.
On the options front, the 18000 put strike holds the maximum OI concentration, indicating nearby support for Nifty. While on the
flip side, 18200-18300 has seen a decent piling up of OI, signifying a stiff resistance in the comparable period. Considering the recent
price action, the undertone is likely to remain upbeat, wherein any intra-week blip could be seen as an opportunity to add long
positions in the index.
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
HINDUNILVR 7804800 5.83 2577.00 (2.03)
APOLLOHOSP 1571875 5.79 4508.65 (4.36)
TATACONSUM 8577000 (0.41) 771.15 (1.13)
CIPLA 7926100 (1.52) 1083.05 (3.58)
GRANULES 7378000 (3.30) 320.55 (2.51)
Weekly change in OI
Long Fo
rmation
Scrip
OI
Futures
OI
Chg (%)
Price
Price
Chg(%)
NATIONALUM 68505000 17.61 81.00 12.81
GNFC 6961500 10.73 560.35 7.18
NMDC 33628500 10.11 123.85 10.58
TVSMOTOR 7746200 6.46 1080.45 7.14
PFC 56227800 4.61 142.05 7.49
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|December 30, 2022
Sameet Chavan
C
hief An
alyst
–
T
e
chnical
& 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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