Technical & Derivatives Report

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www.angelbroking.com

Although the Nifty Bank index opened on a flat note yesterday, the positive momentum picked up in latter half and eventually, ended the session with gains of 1.51% over its previous close. We have been mentioning since past few days that the Nifty Bank index is trading in a range of 17350-18050 and only a breakout from this range will lead to a directional momentum. On the outcome of Britain's EU referendum on 'Brexit', global markets could see intense volatility, which could lead to breakout from the range on either side. Traders are hence advised to wait patiently and watch market’s reaction till today’s closing. Breakout from the mentioned range could lead to directional momentum in near term. Intraday supports for the index are placed around 17530 and 17350; whereas, resistances are seen around 18050 and

18220.

Key Levels

Support 1 – 17530 Resistance 1 – 18050 Support 2 – 17350 Resistance 2 – 18220

Nifty Bank Outlook - (17892)

Yesterday, our markets opened on a flat note citing to muted global cues and remained sideways in first half. However, a flurry of buying interest in the latter half pushed the index higher to post a strong close well above the 8250 mark.

In our earlier report, we had mentioned about the ‘Inverse Head and Shoulder’ pattern on hourly chart and as expected, Wednesday’s corrective move proved out to be a pull back before yesterday’s thrust. Technically speaking, yesterday’s tail end surge seems very encouraging for our markets; indicating possibility of a breakout from the next hurdle of 8336. However, traders should keep a note that the final verdict on Brexit would be out in the initial hour of trading. This important global event may set the tone for the global as well as our markets. A positive outcome may lead to a breakout from the mentioned resistance and a disappointment would result into some strong selling in the market. An immediate support levels would be seen at 8150 –

8060 levels. Keeping this event aside, we maintain our positive

stance on the market with a positional perspective.

Key Levels

Support 1 – 8150 Resistance 1 – 8336 Support 2 – 8060 Resistance 2 – 8400

Sensex (27002) / Nifty (8270)

Exhibit 1: Nifty Hourly Chart

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2 Nifty Vs OI

Views

 FIIs activity in cash market segment was subdued. While in Index Futures, they bought worth Rs. 320 crores with rise in open interest, indicating fresh long formation in last trading session.

 On Index Options front, FIIs sold worth Rs. 390 crores with rise in open interest. In Call option, out of the money strikes, 8400-8700 were active and they also added fresh positions. While in Put option, OI addition was seen in 8200 strike; while out of the money strikes 7800 strike also added some OI. Maximum OI in June series has shifted to 8400 from 8300 call and of put options is still intact in 8000 strike price.

 FIIs were continuously unwinding their long positions in Index and thus most of the longs are now out of the system. Nifty is light in terms of OI now, we would like to wait for any meaningful direction position. We advise traders to remain light on positions and avoid taking undue risk on the event ‘EU Referendum on Brexit’.

Strategy Date Symbol Strategy Status

May 30, 2016 TCS Ratio Bull Call Spread Active

June 06, 2016 NIFTY Long Call Exited at Cost

June 13, 2016 ONGC Ratio Bull Call Spread Active

June 20, 2016 MARUTI Long Call Ladder Active

Comments

 The Nifty futures open interest has increased by 4.47% BankNifty futures open interest has increased by 4.25% as market closed at 8270.45 levels.

 The Nifty June future closed with a premium of 11.80 points against a premium of 1.35 points in previous session. The July series closed at a premium of 39.65 points.

 The Implied Volatility of at the money options has increased from 20.94% to 21.69%.

 The total OI of the market is Rs. 2,70,484/- cr. and the stock futures OI is Rs. 68,270/- cr.

 Few of the liquid counters where we have seen high cost of carry are UNITECH, JPASSOCIAT, IBREALEST, ADANIENT and INDUSINDBK.

OI Gainers

SCRIP OI OI CHG. (%) PRICE PRICE CHG. (%) INFRATEL 8652300 18.51 323.20 -4.87 ALBK 13338000 8.93 63.30 6.03 RCOM 143782000 8.48 49.85 4.18 STAR 1270100 8.33 1070.15 0.31 JSWENERGY 15758000 7.21 81.00 1.69

OI Losers

SCRIP OI OI CHG. (%) PRICE PRICE CHG. (%) HEXAWARE 5450000 -12.74 233.10 4.79 IOB 6566000 -9.81 27.10 0.56 JETAIRWAYS 5897500 -7.76 558.90 -1.01 ARVIND 5364600 -6.97 322.50 -0.74 IGL 2509100 -6.25 607.80 0.12

Put-Call Ratio

SCRIP PCR-OI PCR-VOL

NIFTY 1.18 1.06 BANKNIFTY 1.30 0.96 SBIN 0.99 0.78 TATAMOTORS 0.95 0.68 RELIANCE 0.50 0.49

Historical Volatility

SCRIP HV HEXAWARE 38.41 JISLJALEQS 38.21 INFRATEL 46.08 YESBANK 27.44 ALBK 56.07

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Note: Above mentioned Bullish or Bearish Spreads in Nifty (June Series) are given as an information and not as a recommendation.

Nifty Spot = 8270.45

Lot Size = 75

FII Statistics for 23-June 2016

Detail Buy Sell Net

Open Interest Contracts Value (in Cr.) Change (%) INDEX FUTURES 2249.57 1929.51 320.06 235142 14251.98 3.18 INDEX OPTIONS 23700.38 23055.00 645.38 1250298 76649.29 2.96 STOCK FUTURES 5743.53 5381.24 362.28 1085037 54882.28 (0.69) STOCK OPTIONS 4005.53 4203.93 (198.39) 124637 6662.10 4.58 TOTAL 35699.01 34569.68 1129.32 2695114 152445.64 1.55

Turnover on 23-June 2016

Instrument No. of Contracts Turnover ( in Cr. ) Change (%) INDEX FUTURES 281444 16499.32 9.95 INDEX OPTIONS 5100787 292365.16 45.07 STOCK FUTURES 537379 28498.16 5.47 STOCK OPTIONS 368633 20271.23 15.36 TOTAL 6288243 357633.87 36.96

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 8300 88.30 42.45 57.55 8342.45 Sell 8400 45.85 Buy 8300 88.30 67.90 132.10 8367.90 Sell 8500 20.40 Buy 8400 45.85 25.45 74.55 8425.45 Sell 8500 20.40

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 8300 106.40 37.95 62.05 8262.05 Sell 8200 68.45 Buy 8300 106.40 62.85 137.15 8237.15 Sell 8100 43.55 Buy 8200 68.45 24.90 75.10 8175.10 Sell 8100 43.55

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4 Daily Pivot Levels for Nifty Constituents

Scrips

S2

S1

PIVOT

R1

R2

ACC 1,559 1,565 1,572 1,579 1,586 ADANIPORTS 203 205 207 209 211 AMBUJACEM 240 245 248 253 256 ASIANPAINT 975 980 985 989 995 AUROPHARMA 714 720 725 730 735 AXISBANK 510 518 523 531 536 BAJAJ-AUTO 2,575 2,613 2,640 2,678 2,705 BANKBARODA 148 150 152 154 156 BHEL 118 120 122 124 126 BPCL 992 1,008 1,019 1,035 1,047 BHARTIARTL 360 363 364 366 368 INFRATEL 310 316 327 333 344 BOSCH 21,487 21,669 21,792 21,973 22,096 CIPLA 469 473 478 481 486 COALINDIA 315 316 318 319 320 DRREDDY 3,082 3,127 3,153 3,198 3,224 EICHERMOT 18,495 18,577 18,682 18,765 18,870 GAIL 368 372 374 378 380 GRASIM 4,254 4,277 4,293 4,316 4,333 HCLTECH 758 764 768 774 778 HDFCBANK 1,159 1,174 1,183 1,199 1,208 HDFC 1,220 1,233 1,241 1,254 1,262 HEROMOTOCO 3,014 3,039 3,061 3,085 3,107 HINDALCO 121 122 123 125 126 HINDUNILVR 847 858 866 877 884 ICICIBANK 234 237 239 243 245 IDEA 101 101 102 102 103 INDUSINDBK 1,076 1,090 1,100 1,114 1,125 INFY 1,185 1,198 1,207 1,220 1,228 ITC 352 356 359 363 365 KOTAKBANK 733 740 745 752 757 LT 1,459 1,479 1,493 1,513 1,528 LUPIN 1,455 1,470 1,483 1,498 1,510 M&M 1,350 1,362 1,371 1,384 1,393 MARUTI 4,100 4,134 4,155 4,189 4,209 NTPC 145 147 148 151 152 ONGC 212 215 217 221 223 POWERGRID 151 154 156 159 161 RELIANCE 965 973 977 985 989 SBIN 211 214 216 219 221 SUNPHARMA 736 744 751 759 766 TCS 2,609 2,627 2,643 2,661 2,678 TATAMTRDVR 311 315 318 322 325 TATAMOTORS 471 479 485 493 498 TATAPOWER 70 72 73 75 77 TATASTEEL 324 329 333 337 341 TECHM 523 527 531 535 539 ULTRACEMCO 3,280 3,309 3,329 3,358 3,379 WIPRO 557 560 563 566 568 YESBANK 1,062 1,086 1,101 1,125 1,139 ZEEL 442 445 449 452 457

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Research Team Tel: 022 - 39357800 Website: www.angelbroking.com

For Technical Queries E-mail: [email protected] For Derivatives Queries E-mail: [email protected]

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