August 12, 2017

For Private Circulation Only 5

 Technical Picks | August 12, 2017

Market in early stages of correction, stay light

Sensex (31214) / Nifty (9711)
Exhibit 1: Nifty Weekly chart
Trading for the week began with a narrow range candle on
Monday. However, the index started correcting on Tuesday
to sneak below the 10000 mark. As the week progressed,
the selling pressure intensified as the broader markets
witnessed massive destruction. Amidst gap down openings
on Thursday and Friday, the index crept lower and ended
the week tad above the 9700 mark, registering a loss of
3.53 percent over its previous week's close.

Key Moving Averages:

The 89-day EMA and the 89-week EMA for the
Sensex/Nifty are placed at 30987 / 9593 and 28382 /
8734 levels, respectively.

The 20-day EMA and the 20-week EMA for the Source: Company, Angel Research
Sensex/Nifty are placed at 32025 / 9917 and 30876 /
9549 levels, respectively. Exhibit 2: Nifty Daily chart

Future outlook

In the week gone by, our market has posted a biggest

weekly fall in this calendar year. Everyone was so exuberant
a week ago celebrating the five digit milestone for the Nifty;
but, finally the market has surprised and before anyone
could realize it, we are back to 9700. The entire rally in
previous three weeks has now been completely snapped in
merely four trading sessions.

In the recent rally, we have been quite vocal about the

ongoing extreme nature of the market and have been
advocating using this rally to book profits in order to avoid
surprises. The kind of massive sell off we have witnessed in
the broader market is certainly a part of this surprise. Yes,
one would say, it has come on the back of geopolitical
concerns between the US and the North Korea. But,
historically speaking, the market would always find its own
reason to correct and this is what we witnessed during the
week. In our previous article, we mentioned few observations
that are, 10060 to act as a strong resistance of Upward
Sloping Trend Line on monthly chart, which coincides with
the 100% Price Extension of the previous up move from
7893.80.
Source: Company, Angel Research
Now, we can say that our persistent cautious stance on the
market has worked well for us. On the weekly chart, the
RSI-Smoothened has confirmed a negative crossover along
with the big bearish candle. This certainly calls for an
extended correction in the market. For the coming week,
9600 9580 levels are likely to be tested and since, its a
major support zone in the near term, the market may
respect it for a while. But in case of a bounce back, 9770
9852 are likely to act a strong resistance for the index.
Traders are repeatedly advised to stay light and avoid taking
undue risks as market seems to have entered a corrective
phase. Hence, the possibility of breaking this mentioned
support zone is quite high now.

For Private Circulation Only 1

 Technical Picks | August 12, 2017

Weekly Pivot Levels For Nifty Constituents

SCRIPS S2 S1 PIVOT R1 R2
SENSEX 30,311 30,762 31,579 32,030 32,847
NIFTY 9,426 9,568 9,828 9,971 10,231
NIFTY BANK 23,105 23,546 24,262 24,703 25,420
ACC 1,692 1,727 1,782 1,816 1,872
ADANIPORTS 352 367 394 410 437
AMBUJACEM 250 257 269 276 288
ASIANPAINT 1,102 1,123 1,142 1,163 1,182
AUROPHARMA 628 666 704 742 779
AXISBANK 462 476 494 508 526
BAJAJ-AUTO 2,609 2,698 2,840 2,929 3,071
BANKBARODA 128 135 148 155 168
BPCL 438 461 495 518 552
BHARTIARTL 402 408 417 423 432
INFRATEL 357 369 389 402 421
BOSCHLTD 20,765 21,694 23,189 24,118 25,613
CIPLA 494 518 549 573 605
COALINDIA 221 229 241 248 260
DRREDDY 1,701 1,856 2,056 2,212 2,412
EICHERMOT 27,090 28,359 30,404 31,673 33,718
GAIL 338 353 371 387 405
HCLTECH 847 860 877 890 907
HDFCBANK 1,693 1,721 1,759 1,787 1,825
HDFC 1,638 1,667 1,710 1,738 1,782
HEROMOTOCO 3,663 3,752 3,886 3,974 4,108
HINDALCO 201 211 228 238 255
HINDUNILVR 1,103 1,128 1,168 1,193 1,234
IBULHSGFIN 981 1,065 1,141 1,226 1,301
ICICIBANK 242 265 284 306 325
IOC 386 399 416 429 446
INDUSINDBK 1,557 1,591 1,633 1,667 1,709
INFY 938 963 980 1,005 1,022
ITC 262 267 275 280 288
KOTAKBANK 960 976 989 1,005 1,018
LT 1,097 1,114 1,143 1,161 1,189
LUPIN 868 904 954 991 1,041
M&M 1,283 1,315 1,373 1,405 1,463
MARUTI 7,064 7,261 7,577 7,773 8,089
NTPC 160 164 172 176 184
ONGC 153 156 162 165 170
POWERGRID 205 212 219 226 234
RELIANCE 1,472 1,509 1,570 1,608 1,669
SBIN 255 268 290 302 324
SUNPHARMA 401 425 469 494 538
TCS 2,450 2,473 2,504 2,527 2,558
TATAMTRDVR 187 205 231 249 275
TATAMOTORS 310 342 391 423 472
TATAPOWER 74 75 77 79 81
TATASTEEL 561 579 602 620 644
TECHM 381 392 404 414 426
ULTRACEMCO 3,687 3,805 3,960 4,077 4,232
VEDANTA 257 268 287 298 318
WIPRO 280 285 290 295 299
YESBANK 1,638 1,689 1,753 1,804 1,868
ZEEL 474 490 517 533 561

Technical Research Team

For Private Circulation Only 2

 Derivatives Review | August 12, 2017

FIIs index future Long Short Ratio lowest in 2017

Nifty spot closed at 9710.80 this week, against a close of 10066.40 last week. The Put-Call Ratio has decreased from 1.27 to 1.06
levels and the annualized Cost of Carry is positive at 5.69%. The Open Interest of Nifty Futures increased by 9.20%.

Derivatives View Weekly OI gainers

OI OI Price
Nifty current month future closed with a premium of 30.25 Scrip Price
Futures Chg (%) Chg (%)
points against a premium of 42.15 points to its spot. Next REPCOHOME 672000 76.15 637.70 (17.22)
month future is trading with a premium of 61.25 points.
BRITANNIA 424600 31.37 4113.45 4.74
PCR-OI has decreased from 1.27 to 1.06 levels on W-o-W
CADILAHC 2691200 22.68 483.30 (9.56)
basis. Being a volatile week, the overall build-up in options
are quite scattered. In call option, 9800-10200 strikes were PVR 642800 22.02 1291.20 (8.10)
active and they also added huge positions. On the flip side, TVSMOTOR 5570000 20.72 530.35 (11.92)
out the money strikes of 9000, 9200 and 9400-9600 put
SBIN 75375000 19.73 281.25 (8.39)
options added decent positions; followed by significant
unwinding in 9900-10100 put options. Highest open interest UBL 1246000 19.54 788.20 (3.79)
in August series has now been shifted to 10000 call and 9500 INFRATEL 11102700 17.57 384.30 (5.74)
put option.
Stock that added longs last week are BRITANNIA and
JUBLFOOD. While, fresh shorts were visible in REPCOHOME, Weekly OI losers
GODREJIND, TVSMOTOR, SUNTV and CADILAHC. Liquid OI OI Price
Scrip Price
counters with higher CoC are CIPLA, INFIBEAM, JSWENERGY, Futures Chg (%) Chg (%)
SREINFRA and RCOM. Stocks with negative CoC are PCJEWELLER 3957000 (34.31) 297.40 13.97
CHENNPETRO, INDIGO, GSFC, MCX and RBLBANK. HEXAWARE 1794000 (31.74) 254.85 1.45
Last week, the benchmark index plunged 3.64% with decent
CHOLAFIN 285500 (29.42) 1144.50 (3.43)
rise in open interest, hinting short formation in this fall. FIIs too
actively participated by doubling their shorts in index futures INDIGO 1635600 (26.38) 1215.15 (2.57)
segment. As a result, their Long Short Ratio declined from RAMCOCEM 520800 (25.00) 662.50 (4.03)
65% to 58%. In addition, they bought significant amount of
MGL 901200 (23.05) 989.90 (4.16)
index put options along with writing in call options, indicating
market to remain under pressure going ahead. Maximum BATAINDIA 2857800 (22.91) 637.05 0.56
concentration of put options has shifted lower indicating scope NHPC 21654000 (22.81) 30.25 0.00
for correction towards 9500-9550.

Weekly change in OI

40,000
Call Put
30,000

20,000

10,000

(10,000)

(20,000)

(30,000)

(40,000)

For Private Circulation Only 3

 Research Team Tel: 022 39357800 Website: www.angelbroking.com
For Technical Queries E-mail: technicalresearch-cso@angelbroking.com
For Derivatives Queries E-mail: derivatives.desk@angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as Angel) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.

For Private Circulation Only 4