MARKET STRATEGY

Trading Strategy August 17, 2020

Indian Market Change (%)
M&M AUG Fut (Sell at Rs.611-615, Target
Last Close 1 day YTD
Rs590, Stop Loss Rs621)
Sensex 37,877 (1.1) 4.5

Nifty 11,178 (1.1) 2.5

On the hourly chart, the stock future has slipped
below the previous swing low which is a bearish
Nifty Bank 21,679 (2.3) (20.9)
setup. Daily RSI is in a bearish crossover and
Nifty Midcap 50 4,538 (1.5) (7.9)
falling. Hold short positions with mentioned stop
Nifty Smallcap 50 2,607 (1.0) (17.9) loss.
Trading ideas (Time period: 1-14 days)
Developed Markets Change(%)
BUY NMDC August future at Rs92.5-94.5, Stop
Last Close 1 day YTD Loss Rs91.65 & Target Rs95.5.
Dow Jones 27,931 0.1 19.6
Derivative Strategy (Time Period: Hold Till
Nasdaq 11,019 (0.2) 65.3 expiry)
S&P 500 3,373 (0.0) 34.4 BUY NTPC August future at Rs88-90, Stop Loss
Hang Seng 25,183 (0.2) 0.2 Rs87.25 & Target Rs91.
Nikkei 23,289 0.2 19.1 Nifty Outlook: Nifty finds support around 11111
while 11350 will act as resistance on the upside.
Institutional Activity (`cr) Bank Nifty finds support around 21459 while 21850
Cash YTD will act as resistance.
FII 46 -55544 Asian markets opened in the red led by weaker
DII -797 71650
than expected GDP contraction in Japan, which
*Provisional Figures saw the Nikkei index trade in the red while other
markets traded flat as caution preceded the start of
Advance/Decline stocks No. (NSE) the week. China/US talks get postponed as the Tik
14-Aug-20 13-Aug-20 Tok issue sees tension rise, which could spread to
Adv 700 1086 other Chinese internet Companies.
Dec 1200 787
Unch 85 105

13000 Nifty 50
12000

11000

10000

9000

8000

7000
14-Aug-19

14-Sep-19

14-Oct-19

14-Nov-19

14-Dec-19

14-Jan-20

14-Feb-20

14-Mar-20

14-Apr-20

14-May-20

14-Jun-20

14-Jul-20

14-Aug-20
 DERIVATIVE
Current
OI
FutChg OI in OI PCR PCR ATM Max CE Max PE Rollovers
Index Spot Future Basis v/s
(%) Shares Chg OI VOL IV Buildup Buildup (%)
Total OI
(%)
Nifty 11178 11187 (1.2) 8 43.7 113.3 (0.6) 1.31 1.08 14.0 11500 11000 11.3
BankNifty 21679 21669 (2.3) -11 38.1 16.1 4.2 0.75 1.00 22.0 22500 20000 8.0

Gainers
OI OI Chg Price
Underline
(lakhs) (%)
Price
Chg (%)
Action Derivative Snippets
Short
ADANIENT 0 100.0 196 (2.7) Nifty/Bank Nifty Weekly expiry update:
Buildup
Short
EICHERMOT 3 24.1 20197 (6.9)
Buildup  On the options front (August 20, 2020 expiry),
Short
MRF 0 11.4 61686 (3.9)
Buildup Nifty and Bank Nifty call OTM option strikes saw
short selling as the indices trended lower
OI Losers  Nifty PCR stoodat1.31x vs.1.56x
OI OI Chg Price
Underline
(lakhs) (%)
Price
Chg (%)
Action  FII’s added fresh long positions to the tune of 3k
Long contracts and reduced short positions to the
RAMCOCEM 18 (21.0) 676 (4.3)
Unwinding
ASHOKLEY 526 (18.4) 62 1.1
Short tune of 9k contracts in the index future
Covering
Long  FIIs were net buyers in the cash market
BALKRISIND 19 (16.8) 1312 (5.4)
Unwinding
segment to the tune of Rs46cr
Nifty Monthly Active Strikes
% OI FII Long-Short Activity
Pric Price OI Change %
Strikes OI % Long- Long-Short
e Chng (%) Chng (%) since Chg
Index OI Ch Short Ratio
Expiry Since
g Ratio since Exp
Exp
10500CE 704 (14.6) 4 (1.5) (1.1) 67 3 (13) 1.4 0.7
Fut Long
11000CE 280 (24.6) 9 3.9 (12.7) Fut Short 48 (9) 22
11200CE 155 (31.4) 11.3 33.6 11.6 Opt CE 150 12 23 1.6 1.0
Long
11000PE 94 66.4 33.7 3.2 8.7 Opt CE Short 95 21 18
Opt PE Long 223 11 25 1.6 1.0
10500PE 18 81.2 23 (11.2) 27.4
Opt PE Short 140 16 20

Since Expiry
OI Chg Price Chg Rollover
Underline OI
(%) (%) (%)
NIFTY 113.3 1.5 0.8 11.3

BANKNIFTY 16.1 18.7 0.1 8.0

3577.
IDEA 188.4 13.1 5.6
0
BANDHANBNK 268.3 173.6 (14.3) 4.0
 DERIVATIVE
Cash and carry arbitrage Reverse cash and carry arbitrage
Spot Futures Basis Spot Future Basis
Underline Basis Action Underline Basis Action
Price Price (%) Price s Price (%)
Sell cash and
Buy cash and CANBK 101.30 99.50 (1.80) (1.8)
IDEA 8.95 9.05 0.10 1.1 Buy future
Sell future Sell cash and
ASHOKLE Buy cash and EQUITAS 52.75 52.00 (0.75) (1.4)
61.60 61.95 0.35 0.6 Buy future
Y Sell future CUMMINS Sell cash and
BANDHAN Buy cash and 448.80 443.00 (5.80) (1.3)
288.20 289.65 1.45 0.5 IND Buy future
BNK Sell future

PCR Open Interest PCR Volume

Underline Current Previous % Change Underline Current Previous % Change

UJJIVAN 0.36 0.65 (0.45) ICICIPRULI 1.05 0.34 2.06

EICHERMOT 0.27 0.46 (0.41) COLPAL 0.30 0.12 1.48

BALKRISIND 0.33 0.50 (0.35) FEDERALBNK 0.36 0.15 1.36

RAMCOCEM 0.27 0.41 (0.34) DLF 0.39 0.17 1.27

LUPIN 0.66 0.50 0.33 BERGEPAINT 0.21 0.10 1.24

MARUTI 0.97 1.31 (0.26) MRF 0.22 0.10 1.15

SIEMENS 0.34 0.45 (0.24) SBILIFE 0.59 0.28 1.14

BERGEPAINT 0.31 0.26 0.23 NIITTECH 0.25 0.12 1.09

TATAMOTORS 0.95 1.22 (0.22) PAGEIND 0.00 1.75 (1.00)

BHARATFORG 1.09 1.38 (0.21) PNB 0.70 0.36 0.96

FII Vs Retail Long-Short ratio Historical Volatility of Active Stocks

1.6 FII Retail Clients
80 HV % Chg
1.4 70
1.2 60
1.0 50

0.8 40

0.6 30
20
0.4
10
0.2
0
0.0 NATIONALUM SAIL CUMMINSIND ASIANPAINT TATACONSUM
L/S Fut L/S CE Options L/S PE Option
 PIVOTS AND DEALS
Company CMP Suppor Resista 50- 200- Company CMP Suppor Resista 50- 200-
(Rs) t* nce* DMA DMA (Rs) t* nce* DMA DMA
ACC 1385 1372 1408 1330 1341 ESCORTS 1101 1061 1156 1070 809
ADANIPORTS 348 343 353 334 338 EXIDEIND 163 160 167 155 167
ADANIPOWER 37 37 38 36 46 FEDERALBNK 53 52 54 53 67
AMARAJABAT 743 729 762 690 668 GAIL 96 95 98 100 106
AMBUJACEM 221 218 224 201 194 GLENMARK 476 467 485 434 345
APOLLOHOSP 1707 1680 1742 1490 1467 GMRINFRA 21 21 21 21 20
APOLLOTYRE 130 128 133 112 131 GODREJCP 685 672 705 678 646
ASHOKLEY 62 59 65 52 64 GRASIM 629 622 638 611 655
ASIANPAINT 1803 1789 1823 1703 1733 HAVELLS 611 602 621 581 594
AUROPHARMA 879 862 898 818 587 HCLTECH 709 702 722 623 565
AXISBANK 436 424 450 430 565 HDFC 1792 1769 1819 1820 2020
BAJAJ-AUTO 2988 2966 3019 2903 2872 HDFCBANK 1034 1019 1058 1056 1107
BAJAJFINSV 6247 6158 6368 6078 7259 HDFCLIFE 588 581 598 575 556
BAJFINANCE 3331 3275 3418 3048 3426 HEROMOTOC 2804 2759 2846 2622 2334
BALKRISIND 1316 1281 1374 1261 1046 O
HINDALCO 185 181 189 159 164
BANDHANBNK 288 284 294 323 378
HINDPETRO 209 206 213 218 231
BANKBARODA 46 45 48 48 70
HINDUNILVR 2174 2154 2205 2185 2120
BATAINDIA 1235 1225 1244 1299 1498
IBULHSGFIN 205 199 213 205 218
BEL 113 109 118 92 88
ICICIBANK 361 353 371 357 429
BERGEPAINT 550 544 557 515 509
ICICIPRULI 459 452 468 432 440
BHARATFORG 495 483 510 377 398
IDEA 9 9 9 9 6
BHARTIARTL 529 521 539 563 502
IDFCFIRSTB 30 30 31 27 33
BHEL 37 36 39 36 37
IGL 388 384 394 425 435
BIOCON 395 390 401 403 327
INDIGO 1139 1098 1195 1002 1180
BOSCHLTD 13705 13432 14189 12407 12876
INDUSINDBK 507 497 520 507 888
BPCL 413 406 423 401 420
INFRATEL 199 196 204 209 215
BRITANNIA 3801 3756 3844 3659 3201
INFY 954 949 960 829 737
CADILAHC 395 388 402 370 302
IOC 85 84 87 88 103
CANBK 101 100 103 103 145
ITC 196 193 201 195 207
CESC 595 584 605 604 647
JINDALSTEL 212 206 220 168 145
CHOLAFIN 218 213 227 198 241
JSWSTEEL 265 260 269 207 222
CIPLA 772 754 789 670 535
JUBLFOOD 1870 1850 1904 1740 1655
COALINDIA 132 129 134 133 163
JUSTDIAL 387 384 391 381 451
COLPAL 1411 1396 1436 1398 1399
KOTAKBANK 1307 1291 1335 1337 1458
CONCOR 380 373 386 424 468
L&TFH 64 63 66 64 86
CUMMINSIND 449 431 463 401 466
LICHSGFIN 264 260 271 270 335
DABUR 497 490 503 477 472
LT 983 965 1009 931 1095
DIVISLAB 3090 3038 3163 2431 2122
LUPIN 1018 959 1050 904 790
DLF 142 139 148 147 181
M&M 614 602 632 556 498
DRREDDY 4519 4464 4580 4146 3438
M&MFIN 133 130 138 166 252
EICHERMOT 20144 19557 21241 19263 18660
MANAPPURAM 155 152 159 158 151
EQUITAS 53 51 54 53 75
 PIVOTS AND DEALS
Company CMP Suppor Resista 50- 200- Company CMP Suppor Resista 50- 200-
(Rs) t* nce* DMA DMA (Rs) t* nce* DMA DMA
MARICO 366 364 369 350 327 TATASTEEL 419 408 430 349 368
MARUTI 6588 6512 6705 6021 6259 TCS 2242 2223 2271 2173 2073
MCDOWELL-N 584 575 599 599 591 TECHM 696 688 707 606 668
MFSL 523 516 534 533 491 TITAN 1104 1090 1119 1013 1080
MGL 972 963 986 1016 1008 TORNTPHARM 2839 2790 2887 2508 2170
MINDTREE 1136 1120 1164 1002 875 TORNTPOWE 343 341 345 326 305
MOTHERSUMI 120 118 122 98 108 R
TVSMOTOR 418 411 430 388 402
MRF 61434 60223 63623 63748 63543
UBL 964 945 993 1002 1101
MUTHOOTFIN 1213 1189 1229 1148 853 UJJIVAN 238 232 245 232 265
NATIONALUM 35 35 36 33 37 ULTRACEMCO 4010 3953 4079 3892 3947
NAUKRI 3246 3215 3303 2987 2646 UPL 486 479 495 448 478
NCC 32 31 33 31 39 VEDL 123 121 125 111 119
NESTLEIND 16355 16257 16501 16738 15880 VOLTAS 615 602 630 571 608
NIITTECH 1976 1953 2015 1616 1547 WIPRO 277 275 280 245 229
NMDC 93 92 95 86 96 YESBANK 15 15 16 22 36
NTPC 88 87 90 91 102 ZEEL 161 157 166 164 213
OIL 94 93 95 97 116
ONGC 77 76 78 81 98
Bulk Deals
PAGEIND 18948 18688 19276 19406 20819
Qty Avg
PEL 1432 1404 1472 1346 1346 Date Scrip name Institution B/S
(`000) price (`)
PETRONET 260 256 266 257 253 14- ELECTHER EARC TRUST S 1485 191.7
Aug M SC 30
PFC 91 89 95 85 100
PIDILITIND 1372 1357 1398 1389 1418 14- HEIDELBER PLUTUS B 3075 99.0
Aug G WEALTH
PNB 32 32 33 34 45 MANAGEME
POWERGRID 175 173 179 174 178 NT LLP
PVR 1243 1210 1282 1073 1437
RAMCOCEM 678 662 707 659 691 Results today: Petronet LNG, Can Fin Homes,
Lux Industries, Orient Paper, Sical Logistics, Suven
RBLBANK 177 172 185 174 235
Pharmaceuticals, etc.
RECLTD 108 107 110 106 117
RELIANCE 2114 2083 2151 1879 1534
SAIL 39 38 39 34 36
SBIN 197 193 202 188 248
SHREECEM 21458 21207 21705 22013 21118
SIEMENS 1212 1170 1260 1131 1298
SRF 4175 4115 4253 3789 3537
SRTRANSFIN 686 665 719 681 891
SUNPHARMA 531 524 538 496 447
SUNTV 400 393 410 392 421
TATACHEM 295 292 299 306 469
TATACONSUM 538 531 544 419 356
TATAMOTORS 125 121 130 108 129
TATAPOWER 55 54 57 48 48

Corporate Snippets:
 Lupin announced results from its Phase 3
clinical trial to assess the efficacy and safety of
single-dose Solosec in female patients with
trichomoniasis.
 NLC India issued Commercial Paper of
Rs1,000cr in favour of SBI Mutual Fund — SBI
Liquid Fund.
 ICICI Bank approves allottment of 41.89cr
shares of Rs2 each to qualified institutional
buyers at an issue price of Rs358 per share.
 SBICAP Trustee Company increased its stake
in Jindal Steel & Power to 8.47% from 4.23%
earlier.
 Rattan India Finance acquired a 6.42 percent
stake in Zee Learn by the invocation of pledge
on August 12.
 India Grid Trust Sponsor Sterlite Power sold
14.7% stake in India Grid Trust to Institutional
and HNI investors at a unit price of 98 per unit
aggregating to Rs 840 crore.
 IDFC First Bank clarified that there has been no
discussion regarding a reverse merger with
IDFC at any level.
 SJVN received 100 MW solar project in Gujarat
for Rs2.8 per unit.
 GVK Power & Infra - Price Waterhouse
Chartered Accountants have proposed to resign
as statutory auditors as they await information
for the fiscal 2020 and in recent events in
relation to company’s arm Mumbai International
Airport.
 PNB Housing Finance to consider raising funds
on August 19.
 Embassy Office Parks REIT Board approved
raising Rs2,000cr via NCDs.
NEWS SNIPPETS
 Dilip Buildcon Board approved raising
Rs2,000cr via issue of shares and to raise up to
Rs1,000cr each via NCDs and commercial
papers.
 SBICAP Trustee increased their stake in JSPL
to 8.47% from 4.23% on August 12 via sale
through non-disposal undertaking.
 Supreme Court has passed the order that Aegis
Logistics will deposit Rs142.2cr in an escrow
account for an air pollution case in Mumbai.
 Wipro completed the acquisition of Brazil’s I.T.
solution company - IVIA Serviços de lnformitica.
 Welspun Speciality Solutions received order
worth Rs19.5cr for stainless steel pipes and
tubes.
 Gati received a special notice under the
Companies Act, 2013 from Allcargo Logistics
Ltd. – the company’s promoter and shareholder
representing 46.86% of the company’s voting
capital, for considering and passing Resolution
for the removal of Mahendra Kumar Agarwal -
the company’s MD & CEO.
 Future Lifestyle - CARE Ratings downgrades
the rating on its long-term bank facilities and
NCDs to BBB from A+ while the short-term bank
facilities were downgraded to A3 from A1.
 Future Enterprises - Acuite Ratings & Research
has placed its credit facilities on watch negative
on account of significant rise in liquidity
pressures faced by the company or group due
to Covid-19 and material disruptions in its
operations.
 Future Retail - Commercial Paper downgraded
to A4+ from A2 while rating on proposed NCDs
revised to BB from BBB+.
 HT Media wholly-owned subsidiary HT Global
Education has struck off the name from registrar
of companies as it could not commence any
business activity since its incorporation.
 NEWS SNIPPETS
 NTPC has developed infrastructure at its
Rihand project in Uttar Pradesh to transport fly
ash in bulk to cement plants, located at
distance, at a cheaper cost.
 Vedanta elevates Hindustan Zinc's former CEO
Sunil Duggal as company's CEO.
 Sadbhav Engineering declared lowest bidder for
Rs 1,572 crore projects in Gujarat by NHAI.
 Gateway Distriparks rights issue subscribed
1.24 times.

Economy Snippets:
 Peak power demand declines further to 5.65pc
in 1st fortnight of August. (FE)
 India’s forex reserves rise by $3.623 bn to hit
record high at $538.191 bn. (FE)
 RBI approves dividend of Rs57,000cr to
government.
 Centre relaxes tariff for vessels to boost cruise
industry, port charges to come down by 60-
70%.
 No requirement for AG's consent to initiate suo
motu contempt proceedings, says Supreme
Court.
 Govt targets 362 crore litre ethanol in 2020-21
to help sugar mills pay cane price dues.
 EVENT CALENDAR
Saturday Sunday Monday Tuesday Wednesday Thursday Friday
1-Aug 2-Aug 3-Aug 4-Aug 5-Aug 6-Aug 7-Aug
Nikkei Services
BoE Financial
PMI (Jul) INR,
Stability Report
Caixin Services ISM Non-
GBP, RBA Monetary
Nikkei Markit PMI (Jul) CNY, Manufacturing
Policy Statement Nonfarm Payrolls
Manufacturing RBI MPC's meeting Business Activity
AUD., (Jul) USD
PMI (Jul) INR for monetary policy (Jul) USD,
RBI MPC's meeting
for 2020-21 RBI MPC's meeting
for monetary policy
for monetary policy
for 2020-21
for 2020-21
8-Aug 9-Aug 10-Aug 11-Aug 12-Aug 13-Aug 14-Aug
Industrial
Production (YoY)
WPI inflation INR,
(Jun) INR, EIA OPEC Monthly
Life insurance first
Short-Term Energy Report USD, FDI
FDI inflow for year premium for
Outlook USD., FDI inflow for June, by
June, by RBI, July, by IRDAI,
inflow for June, by RBI, Rupee REER
Rupee REER IEA Monthly Report WPI for July, by
RBI, Rupee REER for July, by RBI,
for July, by RBI, USD, Life insurance commerce and
for July, by RBI, Life insurance first
Life insurance first year premium industry ministry.
Life insurance first year premium for
first year for July, by IRDAI 1200 IST,
year premium for July, by IRDAI, CPI
premium for Merchandise trade
July, by IRDAI, (Combined) for
July, by IRDAI for July, by
Index of Industrial July, by NSO. 1730
commerce and
Production for IST
industry ministry
June, by NSO.
1730 IST
15-Aug 16-Aug 17-Aug 18-Aug 19-Aug 20-Aug 21-Aug
Core Machinery
Orders (MoM) (Jun) Trade Balance (Jul)
JPY CHF

22-Aug 23-Aug 24-Aug 25-Aug 26-Aug 27-Aug 28-Aug

29-Aug 30-Aug 31-Aug

 DISCLAIMER
Recommendation Parameters for Fundamental/Technical Reports:

Buy – Absolute return of over +10%

Accumulate – Absolute return between 0% to +10%
Reduce – Absolute return between 0% to -10%
Sell – Absolute return below -10%

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