Market Wrap

Participants wise OI Activity

Market Insight 21st Dec, 2018

Bank Nifty Activity

Technical View

Indian shares ended a lackluster session slightly lower on Thursday as weak global cues prompted investors to book some profits after sharp gains in the last seven sessions. World markets tumbled as the Fed's commitment to tighten monetary policy, despite rising risks to growth, added to investor worries about slowing global growth. The Fed on Wednesday raised interest rates for the fourth time in a year and signaled it still expects to hike rates twice in the first half of next year, despite mounting economic headwinds. Local markets ended well off their day's lows as oil prices resumed declines on demand concerns and the rupee recovered from an early dip to trade at 69.89 against the dollar in afternoon trade. The benchmark BSE Sensex fell more than 250 points to hit as low as 36,202.90 in early trade before seeing significant recovery to end the session down 52.66 points or 0.14 percent at 36,431.67. The broader Nifty index ended down 15.60 points or 0.14 percent at 10,951.70. Vedanta, Wipro, Bharti Airtel, SBI and Grasim dropped 2-3 percent while Hero MotoCorp, UPL, BPCL, HPCL and Yes Bank climbed 2-4 percent. PNB, SBI and Indian Bank fell 1-2 percent after the government said it would make additional capital infusion in the public sector banks during the current fiscal.

Nifty started day on subdue note as gap down opening of 82 was witnessed and index opened at 10885 levels. Market sentiment was dented in early trade as US Fed raised interest rate and also raised concern of global slowdown in its overnight meeting. But index after testing low of 10880 levels, recovered quite strongly and recoup most of its lost ground while closing with loss of just 15 points at 10951 levels. In yesterday’s session index formed fifth consecutive bullish candle on daily chart. Nifty also gave second consecutive closing above 100 DMA and 10950 levels. In upswing from low of 10000 levels index has managed to recover more than 50% of its fall from 11710 levels. For short term, bullish momentum remains strong but trader needs to be cautious at this psychological levels of 11000. Immediate resistance is at 11010 and 11080 levels while lower levels of 10920 and 10850 could act support.

NSE Indices Curr Close Points Chg Chg %

NIFTY 10951.7 -15.6 -0.14

NIFTY 100 11201.35 -22.05 -0.2

NIFTY 500 9234.45 -12.35 -0.13

NIFTY MIDCAP 17989.15 20.95 0.12

INDIA VIX 14.3325 -0.3275 -2.23

BSE Indices Curr Close Points Chg Chg %

SENSEX 36431.67 -52.66 -0.14

BSE 100 11248.72 -17.24 -0.15

BSE200 4689.82 -6.67 -0.14

BSE 500 14642.72 -18.36 -0.13

BSE MID CAP 15530.54 11.09 0.07

BSE SMALL CAP 14781.67 17.09 0.12

Sectorial Indices Curr Close Points Chg Chg %

NIFTY AUTO 9524.55 16.85 0.18

NIFTY FIN SERVICE 11599.75 -16.55 -0.14

NIFTY FMCG 30759.95 -217.3 -0.7

NIFTY IT 14542.15 -49.65 -0.34

NIFTY MEDIA 2513.8 -2.4 -0.1

NIFTY METAL 3177.9 -33.25 -1.04

NIFTY PHARMA 8853.8 30.35 0.34

NIFTY PSU BANK 3050.3 -55.95 -1.8

NIFTY PVT BANK 15374.6 1.6 0.01

NIFTY REALTY 243.35 -0.8 -0.33

NIFTY COMMODITIES 3472.4 -10.95 -0.31

NIFTY CONSUMPTION 5070.55 -14.7 -0.29

NIFTY CPSE 2091.95 13.85 0.67

NIFTY ENERGY 14424.7 -37.8 -0.26

NIFTY INFRA 3182.2 4.5 0.14

NIFTY MNC 14023.7 -125.6 -0.89

NIFTY SERV SECTOR 15002.1 -31.9 -0.21

NIFTY PSE 3394.7 12.25 0.36

NIFTY BANK 27275.1 -23.3 -0.09

Nifty 50 Top 3 Gainers Curr Close Points Chg Chg %

YES BANK LTD 186.75 7.2 4.01

HINDUSTAN PETRO 244.45 8.3 3.51

BHARAT PETROL 371.1 9.35 2.58

Nifty 50 Top 3 Losers Curr Close Points Chg Chg %

GRASIM INDS LTD 828.5 -26.4 -3.09

STATE BANK IND 294.05 -6.65 -2.21

WIPRO LTD 333.25 -7.45 -2.19

Exchange Advance Decline Unchg

NSE 829 883 350

BSE 1226 1356 166

Nifty Derivative Activity

Participants wise OI Activity

12.1

11.5

11.5

14.9

30.0

55.3

35.1

43.9

24.8

12.6

35.1

54.1

40.6

36.7

51.2

42.1

32.8

3.8

3.0

1.6

0.8

6.0

-

10.00

20.00

30.00

40.00

50.00

60.00

Tho

usa

nd

s C

on

trac

ts

CE

PE

-0.4

-2.3

-0.6

-1.6

-5.8

4.3

-1.6

5.7

1.8

-5.2

0.4

2.1

1.4

-1.9

0.5

4.2

-0.1

-2.0

-0.3

-0.1

-0.0

-0.4

(8.00) (6.00) (4.00) (2.00)

- 2.00 4.00 6.00 8.00

Tho

usa

nd

s C

on

trac

ts

CE

PE

Bank Nifty Derivative Activity

OI

OI Change

Client 34.9%

DII 9.7%

FII 47.4%

Pro 8.0%

47.7%

70.2%

47.2%

52.1%

52.3%

29.8%

52.8%

47.9%

Client

DII

FII

Pro

Future Index Long Future Index ShortParticipant wise OI Activity ( Fig in ‘000 Contracts) Index Future OI %

Participant Type

Index Fut Activity

Call Activity

Put Activity

Client -0.9 -39.0 -65.7

DII -0.5 0.0 0.0

FII 4.0 4.4 -0.4

Pro -2.7 34.6 66.1

Index NIFTY Change

Fut Closing 10978.2 -0.1%

Prem /Disc 26.50 7.30

OI Qty 2.43 cr. 4.4%

Nifty PCR 1.47

Highest OI 11000 CE 10000 PE

• Yesterday, FII had added Long 4K Contracts in Index Futures and Clients had added Short 0.9K Contracts

• FII had added Call Long by 4.4K Contracts and done Put Long Unwinding of 0.4K Contracts

• Clients had done Call Long Unwinding by 39K Contracts and done Put Long Unwinding of 65.7K Contracts

• Yesterday NIFTY future was down -0.08% with increase in O I by 4.4%.

• Put O I addition was seen at 10900 followed by 10500 and Call O I reduction was seen at 11400 followed by 10900.

• As per current option data Immediate Resistance is around 10700 & Major Resistance is around 11000.

• As per current option data Immediate support is around 10500 & Major Support is around 10200.

0.00 20.00 40.00 60.00 80.00 100.00 120.00

Rollover (%) Delivery (%) Fut Vol Chng(%) Fut OI Chng(%) Price Chng(%)

2.1

1.9

1.5

1.8

2.6

8.0

8.4

9.9

13.8

12.4

INDIGO

MARICO

ESCORTS

IDFCBANK

APOLLOTYRE

-0.7

-1.9

-3.9

-4.6

-1.3

23.8

18.7

15.2

15.6

32.0

IOC

COALINDIA

SRTRANSFIN

JINDALSTEL

ACC

1.8

1.0

3.9

1.3

4.2

145.0

145.8

148.2

148.8

165.7

IDFCBANK

IDFC

PETRONET

POWERGRID

GODREJCP

-1.4

-1.9

-1.3

-0.7

-3.9

15.5

17.8

20.8

23.4

7,719.6

BOSCHLTD

COALINDIA

ACC

IOC

ARVIND

Index BANKNIFTY Change

Fut Closing 27340.5 -0.1%

Prem/Disc 65.40 5.65

OI Qty 0.69 cr. 8.6%

Highest OI 27500 CE | 27000 PE

• Yesterday BANKNIFTY future was down -0.06% with increase in O I by 8.62%.

• Put O I addition was seen at 27000 followed by 27200 which can act as short term support.

• Call O I addition was seen at 27500 followed by 27800 which can act as short term resistance.

0.5

7.2

11

.7

2.0

4.4

5.0

5.4

18

.0

3.8

4.9

5.5

5.4

3.6

30

.3

5.2

5.8

4.1

2.5

2.9

0.1

0.1

0.0

-

10

20

30

40Th

ou

san

ds

Co

ntr

acts

CE

PE-0

.0

-0.0

0.3

0.0

2.2

2.9

2.6

5.8

1.9

1.8

3.0

2.0

1.7

8.0

2.1

2.9

2.1

0.8

0.1

0.0

0.0

0.0

(2) - 2 4 6 8

10

Tho

usa

nd

s C

on

trac

ts

CE

PE

OI

OI Change

Market Buzz

• ONGC approves Rs.4,022 crore share buyback with the record date of Jan 4, 2019. The share buyback entails repurchase of 25.29 crore scrips, or 1.97% of all equity, at Rs.159 apiece. The government has been pushing cash-rich public sector undertakings (PSUs) to use their funds to buyback shares or pay a higher dividend, to achieve its fiscal deficit target of 3.3% for 2018-19

• UPL Ltd. said it wasn’t severely affected by the dry weather conditions in Europe as it tried to allay investor fears after a brokerage said that the drought in Europe had affected fungicide sales in the continent. UPL’s cereals fungicide portfolio is very small which meant it was not as severely impacted as Bayer, the company said in an exchange clarification.

• Dr Reddy’s Laboratories: Aquestive and Indivior said they would file a petition with the U.S. Court of Appeals for the Federal Circuit for hearing on the ruling to vacate the preliminary injunction that enjoined Dr. Reddy’s from launching its generic buprenorphine/naloxone sublingual film.

• Bharti Airtel’s board approved sale of up to 59.12 crore equity shares, representing 32 percent stake of Bharti Infratel owned by the company to its arm Nettle Infrastructure Investments. After the deal, Bharti Airtel to own 18.33 percent stake in its Infratel arm and Nettle Infrastructure Investments and the public will hold 35.18 percent and 46.49 percent, respectively.

• Coal India said it would pay interim dividend of Rs 7.25 per share aggregating to Rs 4500 crore to its shareholders with an implied dividend yield of 3 percent. The company has fixed Dec. 31 as the record date.

• Infosys appointed Nilanjan Roy as company Chief Financial Officer with effect from March 1 2019, while Jayesh Sanghrajka will be the deputy CFO, from the same date. The tech company’s arm and Qatar National Bank also announced implementation of digital banking solutions for the bank.

• NHPC Limited said 520 MW power station in Himachal Pradesh would be under complete shutdown from three months with effect from Dec. 20 for repair and maintenance work.

• Bosch said it will would close Karnataka’s Bidadi Plant from Dec. 28-29 due to reduction in volumes seen, as a result of decline in the customer’s requirement. The company said that there will no financial impact on account of proposed suspension of operations.

• Indian Hume Pipe received Letter of Acceptance for constructions of drinking water supply projects worth Rs 502.89 crore in Andhra Pradesh for the state’s Water Supply Corporation. The project will be completed within 24 months.

• Indiabulls Real Estate entered into an agreement with real estate private-equity Blackstone to divest up to 50 percent stake in two office assets in Gurugram at aggregate value of Rs 464 crore.

• HT Media’s board approved to acquire 25 percent stake in Next Mediaworks’ promoters for Rs 45.15 crore and to additionally acquire 26 percent stake, by triggering an open offer to the public shareholders. The board also gave nod to acquire 48.6 percent stake in Next Radio.

• JSW Steel said it would infuse Rs 63.5 crores in Vardhaman Industries to pay the creditors as per the Resolution Plan by NCLT. The entire shareholding of Vardhaman Industries will be reduced by way of capital reduction and it will be delisted

• CARE Ratings received the SEBI notice for conduct of adjudication proceedings in relation to credit ratings assigned to Infrastructure Leasing & Financial Services Ltd. and one of its subsidiaries

• Escorts Group increased its stake in Optunia Power Infrastructure from 49 percent to 99 percent, by acquiring 2.94 crore shares at face value of Rs 10 per share.

• Tata Consultancy Services implemented payments operations solutions for Japan based-MUFG Bank.

• HCL Technologies partnered with Israel based Cloudify to bring 5G network solutions to telecom providers.

• Tata Motors partners with Zoomcar to deploy 500 Electric Vehicles in Pune.

• Container corporation to give one free share for every 4 held.

Nifty 50 Daily Volatility Levels

ADANIPORTS 376.65 Neutral Neutral 380 360 391.8 384.3 379.3 376.9 374.5 369.5 362.1

ASIANPAINT 1427.75 Long Built-up Up 1440 1400 1466.2 1441.0 1424.0 1415.9 1407.7 1390.7 1365.5

AXISBANK 634.9 Neutral Neutral 640 600 659.9 649.1 641.8 638.3 634.8 627.5 616.6

BAJAJ-AUTO 2895.5 Neutral Neutral 3000 3000 2971.6 2927.7 2898.2 2884.1 2869.9 2840.4 2796.5

BAJAJFINSV 6419.4 Neutral Neutral 6400 6000 6686.6 6549.8 6457.5 6413.4 6369.2 6277.0 6140.1

BAJFINANCE 2599.05 Neutral Neutral 2600 2500 2708.5 2654.1 2617.5 2599.9 2582.4 2545.7 2491.3

BHARTIARTL 316.65 Short Built-up Down 330 300 335.6 327.7 322.3 319.8 317.2 311.8 303.9

BPCL 370.65 Long Built-up Up 320 383.8 375.0 369.0 366.1 363.3 357.3 348.4

CIPLA 521.75 Short Built-up Neutral 530 520 541.4 532.8 527.0 524.2 521.4 515.6 507.0

COALINDIA 250.5 Neutral Neutral 255 240 257.6 254.2 252.0 250.9 249.8 247.6 244.2

DRREDDY 2636.15 Neutral Neutral 2700 3000 2725.7 2677.5 2645.0 2629.4 2613.9 2581.3 2533.1

EICHERMOT 24172.65 Short Covering Neutral 25000 22000 25026.3 24565.2 24254.3 24105.5 23956.8 23645.9 23184.7

GAIL 354.6 Neutral Down 370 350 369.4 363.1 358.9 356.9 354.9 350.7 344.4

GRASIM 831.6 Short Built-up Down 880 820 878.4 861.5 850.1 844.6 839.1 827.7 810.8

HCLTECH 962.75 Neutral Neutral 1000 940 1001.1 981.4 968.1 961.7 955.4 942.1 922.4

HDFC 1980.7 Neutral Neutral 2000 1900 2041.5 2011.6 1991.5 1981.8 1972.1 1952.0 1922.1

HDFCBANK 2140.55 Long Built-up Neutral 2140 2100 2176.8 2156.2 2142.3 2135.7 2129.1 2115.2 2094.6

HEROMOTOCO 3372.5 Long Built-up Up 3400 3200 3478.7 3410.9 3365.2 3343.3 3321.5 3275.7 3208.0

HINDALCO 224.25 Neutral Down 230 220 235.2 230.6 227.6 226.1 224.7 221.6 217.1

HINDPETRO 244.85 Long Built-up Up 250 200 254.4 247.6 243.0 240.8 238.5 233.9 227.1

HINDUNILVR 1841.5 Neutral Neutral 1900 1800 1899.2 1872.9 1855.1 1846.6 1838.1 1820.3 1794.0

IBULHSGFIN 848.8 Neutral Neutral 900 700 913.8 879.6 856.5 845.5 834.4 811.3 777.1

ICICIBANK 363 Neutral Neutral 370 350 375.6 370.1 366.5 364.7 363.0 359.3 353.9

INDUSINDBK 1620.1 Neutral Neutral 1700 1500 1673.3 1646.6 1628.7 1620.1 1611.4 1593.5 1566.8

INFRATEL 262.65 Neutral Neutral 270 240 270.6 267.0 264.6 263.4 262.2 259.8 256.2

INFY 669.05 Long Built-up Neutral 700 620 690.7 679.4 671.7 668.0 664.4 656.7 645.3

IOC 140.5 Neutral Neutral 140 135 145.9 142.8 140.7 139.7 138.6 136.5 133.4

ITC 283.15 Neutral Neutral 290 260 289.9 286.6 284.4 283.4 282.4 280.2 276.9

JSWSTEEL 309.25 Long Unwinding Neutral 320 300 320.5 315.4 311.9 310.3 308.6 305.1 300.0

KOTAKBANK 1240.3 Neutral Neutral 1300 1100 1293.9 1264.6 1244.9 1235.5 1226.1 1206.4 1177.1

LT 1453.75 Long Built-up Up 1460 1400 1483.0 1464.4 1451.8 1445.9 1439.9 1427.3 1408.7

M&M 796.2 Short Covering Up 800 700 819.1 804.4 794.4 789.7 784.9 774.9 760.2

MARUTI 7827.5 Short Built-up Down 8000 7000 8155.7 8018.8 7926.5 7882.4 7838.2 7745.9 7609.0

NTPC 149.4 Neutral Neutral 150 145 153.4 151.4 150.1 149.5 148.8 147.5 145.5

ONGC 148.5 Neutral Neutral 150 140 153.5 151.1 149.4 148.6 147.8 146.1 143.7

POWERGRID 198.35 Short Built-up Neutral 200 204.7 201.7 199.7 198.8 197.9 195.9 192.9

RELIANCE 1130.9 Short Built-up Neutral 1200 1000 1169.8 1152.3 1140.5 1134.8 1129.2 1117.4 1099.8

SBIN 294.9 Long Unwinding Down 300 280 307.5 302.7 299.4 297.8 296.3 293.0 288.1

SUNPHARMA 430.05 Long Built-up Neutral 500 400 451.3 439.4 431.3 427.5 423.6 415.6 403.6

TATAMOTORS 176.25 Short Covering Neutral 180 170 183.0 179.0 176.4 175.1 173.9 171.2 167.3

TATASTEEL 524.8 Short Built-up Neutral 540 500 543.9 535.3 529.5 526.7 523.9 518.1 509.5

TCS 1960.75 Short Built-up Neutral 2000 1700 2022.1 1994.7 1976.2 1967.4 1958.5 1940.0 1912.6

TECHM 708.6 Short Built-up Neutral 720 700 733.8 722.0 714.1 710.3 706.4 698.5 686.7

TITAN 930.25 Short Built-up Neutral 940 900 956.2 943.7 935.3 931.3 927.2 918.8 906.3

ULTRACEMCO 4057.35 Long Unwinding Neutral 4200 3600 4209.7 4143.9 4099.6 4078.3 4057.1 4012.7 3946.9

UPL 773.25 Short Covering Up 780 760 797.2 781.4 770.8 765.8 760.7 750.1 734.3

VEDL 203.55 Short Built-up Down 210 190 213.5 209.5 206.8 205.5 204.2 201.5 197.6

WIPRO 334.35 Short Built-up Down 350 330 348.7 343.1 339.3 337.6 335.8 332.0 326.4

YESBANK 187.45 Long Built-up Up 200 180 199.3 191.6 186.3 183.9 181.4 176.1 168.4

ZEEL 463.8 Short Built-up Neutral 500 450 488.5 476.9 469.1 465.3 461.5 453.7 442.1

Symbol Futures

Close O I Activity Trend

Highest Call OI

Highest Put OI

R3 R2 R1 Mid

Point S1 S2 S3

BANKNIFTY 27340.5 Neutral Neutral 27500 27000 27837.9 27593.2 27428.3 27349.3 27270.4 27105.4 26860.7

NIFTY 10978.2 Neutral Neutral 11000 10000 11177.5 11079.8 11013.9 10982.4 10950.8 10884.9 10787.2

DISCLOSURES

Created by: IGSL - Research Inventure Growth & Securities Ltd,201,Viraj Tower, Near Landmark Building, Western Express Highway, Andheri (East),Mumbai -400 093 Tele: 91-22-71148500 , Fax: 91-22-40751511. E-mail: Research@inventuregrowth.com , website : http://www.inventuregrowth.com

Research Team Tel: 022 – 71148579 E-mail: research@inventuregrowth.com Website: Inventuregrowth.com

Research Team Profile Email ID

Mr. Prashant Barwaliya Head- Research Prashant.b@inventuregrowth.com

Mr. Yash Doshi Fundamental Analyst Yash.doshi@Inventuregrowth.com

Mr. Smeet Gala Fundamental Analyst Smeet.Gala@Inventuregrowth.com

Mr. Kunal Kame Technical Analyst Kunal.kame@Inventuregrowth.com

This Report is published by Inventure Growth & Securities Limited (hereinafter referred to as “IGSL”) for private circulation. IGSL is a registered Research Analyst under SEBI (Research Analyst) Regulations, 2014 having Registration no. INH000006129. IGSL is also a registered Stock Broker with National Stock Exchange of India Limited, BSE Limited and Metropolitan Stock Exchange of India Limited (MSE) in cash, F&O & currency derivatives segments. It is also registered as a Depository Participant with CDSL and is also registered with AMFI as a Mutual Fund Distributor IGSL have not been debarred / suspended by SEBI for Retail & Institutional business or any other regulatory authority for accessing / dealing in securities Market other than PRO business. IGSL, its associates or analyst or his relatives may or may not hold any financial interest in the subject company. IGSL or its associates or Analyst do not have any conflict or material conflict of interest at the time of publication of the research report with the subject company. IGSL or its Affiliates may or may not have been beneficial ownership of one percent or more of the securities mentioned in this report. However, one or more of IGSL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those securities or options thereon, either on their own account. IGSL 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. IGSL or its associates have not received any compensation or other benefits from the company covered by Analyst or third party in connection with the research report. Analyst has not served as an officer, director or employee of Subject Company and IGSL / analyst has not been engaged in market making activity of the subject company. Analyst Certification: I/We, Kunal Kame/ Yash Doshi the research analyst Is the author of this report, hereby certify that the views expressed in this research report accurately reflects my/our personal views about the subject securities, issuers, products, sectors or industries. It is also certified that no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst(s) principally responsible for the preparation of this research report and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.

DISCLAIMER Inventure Growth and Securities Limited (hereinafter referred to as “IGSL”) 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. It also has registration with AMFI as a Mutual Fund Distributor. Inventure Growth and Securities Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000006129. IGSL has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities Market. IGSL 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. Inventure Growth and Securities 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. Inventure Growth and Securities 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 Inventure Growth and Securities 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 Inventure Growth and Securities 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.