MARKET STRATEGY

Feb 14, 2022

Indian Market Change (%) Trading Strategy
Last Close 1 day YTD
Short Term: Buy HDFC 2400 PE @29-33, SL 25 &.
Sensex 58,153 (1.3) (1.7)
Target 45. The stock has given a short term
Nifty 17,375 (1.0) (1.4)
breakdown.
Nifty Bank 38,517 (1.3) 5.8
Nifty Midcap 50 8,202 (2.3) (3.8) Trading ideas (Time period: 1 - 14 days)
Nifty Smallcap 50 4,946 (2.3) (8.6) Sell Bajaj Finance February future @6960-7015, Stop
Loss 7125 & Target 6895.
Developed Markets Change(%)
Last Close 1 day YTD
Derivative Strategy (Time Period: Hold till expiry)
Dow Jones 34,738 (1.4) (5.0)
Sell ACC February future @2235-2245, Stop Loss
Nasdaq 13,791 (2.8) (12.9)
2284.80 & Target 2195.
S&P 500 4,419 (1.9) (7.9)
Technical View: Nifty finds support around 17050
Hang Seng 24,907 (0.1) 7.0
while 17600 will act as resistance on the upside.
Nikkei 27,696 0.4 (3.8)
Bank Nifty finds support around 37800 while 38600
will act as resistance.
Institutional Activity (`cr)
Cash YTD Asian markets opened in the red with the Japanese
FII 109 -51059 'Nikkei' reopening after a trading holiday on Friday &
DII -697 27766 trading lower by nearly 600 points. The other Asian
*Provisional Figures
markets were also weak with the exception of the
Advance/Decline stocks No. (NSE) Australian S&P index which traded well in the green
11-Feb-22 10-Feb-22 on positive data. Chinese stocks could see
Adv 485 1060 contrarian buying as data from manufacturing
Dec 1638 1043 shows growth momentum returning.
Unch 35 53

19,000.00
Nifty 50
18,000.00
17,000.00
16,000.00
15,000.00
14,000.00
13,000.00
12,000.00
11,000.00
10,000.00
9,000.00
11-Feb-21

11-Mar-21

11-Apr-21

11-May-21

11-Jun-21

11-Jul-21

11-Aug-21

11-Sep-21

11-Oct-21

11-Nov-21

11-Dec-21

11-Jan-22

11-Feb-22
 DERIVATIVE
Current OI OI in
Futur FutCh Basi OI PCR PCR ATM Max CE Max PE Rollovers
Index Spot v/s Total Share
e g (%) s Chg OI VOL IV Buildup Buildup (%)
OI (%) s
Nifty 17375 17356 (1.5) -19 32.2 109.3 0.7 1.09 0.99 16.4 18000 16500 16.0

BankNifty 38517 38518 (1.4) 0 28.5 21.3 (1.0) 0.83 1.04 20.0 39000 38000 12.9

OI Gainers Derivative Snippets

OI OI Chg Price
Underline Price Action
(lakhs) (%) Chg (%) Nifty/Bank Nifty Weekly expiry update:
Short
POWERGRID 331 18.6 203 (2.3)
Buildup  On the options front (February, 2022 expiry) In
Short
CROMPTON 33 14.3 385 (3.3)
Buildup Nifty, Out of the money options saw an increase
Short
MOTHERSUMI 197 13.4 172 (5.0) in put buying and increase call writing. Hence, we
Buildup
expect the Nifty to trade with negative bias.
OI Losers  Nifty PCR stood at 1.09x vs 1.34x
OI OI Chg Price
Underline
(lakhs) (%)
Price
Chg (%)
Action  FII’s index future long short ratio stood at 0.9x vs
PFC 458 (14.7) 122 (0.4)
Long 1.1x
Unwinding
Long  FIIs were net buyers in the cash market segment
COROMANDEL 12 (12.5) 784 (2.6)
Unwinding
to the tune of Rs 108.53 cr.
Short
PETRONET 179 (9.1) 224 1.7
Covering

Nifty Monthly Active Strikes

Price OI % OI Change
Strikes Price OI
Chng (%) Chng (%) since Expiry
18000CE 5.0 (78.8) 46 162.8 14058.2

17900CE 9 (78.2) 28 119.6 172593.9

FII Long-Short Activity
17700CE 31 (70.3) 29.7 106.1 164908.3 % Chg Long- Long-Short
%
Index OI Since Short Ratio
17100PE 61 199.0 28.8 248.1 522681.8 Chg
Exp Ratio since Exp
17000PE 44 181.9 32 111.0 42209.4 Future Index
70 (8) 62
Long 0.9 1.9
Future Index
Since Expiry 75 8 (13)
Short
OI Chg Price Chg Rollover Option Index
Underline OI 331 18 38
(%) (%) (%) Call Long 1.3 1.0
NIFTY 109.3 (0.1) 1.4 16.0 Option Index
260 42 45
Call Short
BANKNIFTY 21.3 6.8 1.4 12.9 Option Index 521 24 45 1.9 0.7
BATAINDIA 17.3 117.9 (4.9) 3.8 Put Long
Option Index 270 24 121
CROMPTON 33.2 101.9 (6.5) 5.5 Put Short
 DERIVATIVE
Cash and carry arbitrage Reverse cash and carry arbitrage
Spot Futures Basis Spot Futures Basis
Underline Basis Action Underline Basis Action
Price Price (%) Price Price (%)
Sell cash and
Buy cash and RECLTD 138.95 133.00 (5.95) (4.3)
IDFC 63.65 63.90 0.25 0.4 Buy future
Sell future
INDIAMAR (205.5 Sell cash and
DEEPAKN Buy cash and 5045.85 4840.30 (4.1)
2211.90 2219.95 8.05 0.4 T 5) Buy future
TR Sell future
METROPO Sell cash and
GODREJC Buy cash and 2421.65 2332.75 (88.90) (3.7)
825.00 827.95 2.95 0.4 LIS Buy future
P Sell future

PCR Open Interest PCR Volume

Underline Current Previous % Change Underline Current Previous % Change

PETRONET 0.59 0.41 0.42 LTTS 0.36 0.08 3.40

JKCEMENT 0.16 0.12 0.33 PAGEIND 0.32 0.08 3.00

TATACHEM 0.32 0.47 (0.31) NESTLEIND 0.45 0.12 2.64

BANDHANBNK 0.47 0.64 (0.28) LTI 0.43 0.13 2.27

IPCALAB 0.21 0.29 (0.27) INDIACEM 0.84 0.27 2.11

LALPATHLAB 0.41 0.56 (0.26) ICICIGI 0.44 0.14 2.10

SUNTV 0.27 0.36 (0.25) PERSISTENT 0.35 0.12 1.99

BOSCHLTD 0.35 0.46 (0.25) OBEROIRLTY 0.37 0.13 1.97

NAUKRI 0.45 0.59 (0.24) MPHASIS 0.19 0.06 1.93

MRF 0.21 0.28 (0.24) SIEMENS 0.36 0.13 1.89

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

2.5 60 HV % Chg
1.9 50
2.0
40
1.5 1.3
FII 30
0.9 1.25
1.0 Retail Clients 20
1.01
0.84 10
0.5
0
0.0 NAUKRI PERSISTENT LTI INDIACEM TATACHEM

L/S Fut L/S CE Options L/S PE Option

 PIVOTS AND DEALS
CMP Suppor Resistan 50- 200- CMP Suppor Resistan 50- 200-
Company Company
(Rs) t* ce* DMA DMA (Rs) t* ce* DMA DMA
AARTIIND 988 977 1006 1004 940 CHOLAFIN 680 672 690 587 565
ABBOTINDIA 16537 16297 16780 17767 18321 CIPLA 959 949 972 917 928
ABCAPITAL 117 116 120 123 116 COALINDIA 167 165 169 156 155
ABFRL 287 284 292 286 239 COFORGE 4542 4491 4626 5307 4809
ACC 2249 2227 2284 2248 2223 COLPAL 1456 1444 1466 1448 1595
ADANIENT 1764 1747 1778 1738 1546 CONCOR 611 607 617 636 661
ADANIPORTS 724 717 732 737 737 COROMANDEL 790 782 804 768 809
ALKEM 3431 3396 3478 3516 3478 CROMPTON 385 379 395 426 441
AMARAJABAT 608 602 616 626 703 CUB 136 135 139 142 156
AMBUJACEM 368 364 374 377 379 CUMMINSIND 939 921 956 940 909
APLLTD 752 745 761 784 839 DABUR 561 556 565 567 583
APOLLOHOSP 4515 4456 4593 4856 4318 DALBHARAT 1899 1866 1941 1899 1962
APOLLOTYRE 220 217 224 220 223 DEEPAKNTR 2212 2182 2263 2396 2189
ASHOKLEY 133 132 135 130 129 DELTACORP 278 275 284 276 227
ASIANPAINT 3216 3189 3237 3289 3113 DIVISLAB 4291 4196 4430 4437 4644
ASTRAL 2074 2052 2104 2257 2099 DIXON 4365 4318 4442 5124 4686
ATUL 9527 9449 9618 9295 9137 DLF 379 374 386 395 354
AUBANK 1320 1298 1360 1196 1153 DRREDDY 4325 4287 4357 4577 4893
AUROPHARMA 700 682 710 688 800 EICHERMOT 2598 2579 2622 2616 2646
AXISBANK 804 798 810 724 744 ESCORTS 1854 1843 1864 1859 1471
BAJAJ-AUTO 3567 3525 3592 3364 3745 EXIDEIND 164 162 166 169 177
BAJAJFINSV 16113 15949 16239 16764 15296 FEDERALBNK 103 102 105 93 88
BAJFINANCE 7012 6928 7087 7193 6799 FSL 144 141 148 169 178
BALKRISIND 2179 2144 2236 2298 2311 GAIL 141 140 142 138 147
BALRAMCHIN 427 422 435 387 353 GLENMARK 490 484 497 503 553
BANDHANBNK 318 313 325 285 299 GMRINFRA 42 42 43 44 35
BANKBARODA 114 112 115 93 86 GNFC 566 558 576 457 407
BATAINDIA 1859 1841 1886 1926 1781 GODREJCP 825 813 845 918 940
BEL 200 199 203 207 188 GODREJPROP 1560 1535 1583 1840 1756
BERGEPAINT 718 711 728 750 788 GRANULES 306 304 310 323 331
BHARATFORG 732 713 754 727 743 GRASIM 1710 1688 1746 1725 1606
BHARTIARTL 715 709 723 702 640 GSPL 298 292 305 306 315
BHEL 56 56 57 60 63 GUJGASLTD 637 630 648 665 648
BIOCON 403 397 407 370 373 HAL 1380 1367 1396 1320 1224
BOSCHLTD 16260 16174 16402 16708 15821 HAVELLS 1175 1158 1199 1313 1233
BPCL 370 365 374 384 433 HCLTECH 1164 1155 1176 1211 1117
BRITANNIA 3481 3437 3517 3582 3650 HDFC 2426 2412 2445 2619 2652
BSOFT 453 449 458 505 419 HDFCAMC 2212 2193 2227 2390 2773
CADILAHC 392 389 397 440 538 HDFCBANK 1519 1504 1529 1503 1519
CANBK 252 247 258 222 182 HDFCLIFE 595 592 600 648 682
CANFINHOME 622 614 633 594 583 HEROMOTOCO 2719 2667 2759 2564 2758
CHAMBLFERT 388 380 401 415 341 HINDALCO 543 537 551 482 443
 PIVOTS AND DEALS
CMP Suppor Resistan 50- 200- CMP Suppor Resistan 50- 200-
Company Company
(Rs) t* ce* DMA DMA (Rs) t* ce* DMA DMA
HINDCOPPER 139 136 142 128 136 MCDOWELL-N 844 836 857 894 771
HINDPETRO 302 297 305 303 291 MCX 1411 1397 1434 1585 1622
HINDUNILVR 2258 2245 2275 2324 2445 METROPOLIS 2422 2374 2459 3013 2861
HONAUT 43511 42852 44609 42324 42117 MFSL 861 853 874 964 998
IBULHSGFIN 198 194 204 224 235 MGL 799 785 811 862 1049
ICICIBANK 791 787 796 774 711 MINDTREE 3870 3807 3956 4374 3616
ICICIGI 1344 1321 1361 1394 1484 MPHASIS 3002 2938 3071 3162 2767
ICICIPRULI 517 511 526 565 610 MRF 68233 67614 69276 72648 78182
IDEA 11 11 11 13 10 MUTHOOTFIN 1424 1404 1455 1476 1475
IDFC 64 63 65 59 56 NAM-INDIA 331 327 334 350 385
IDFCFIRSTB 46 46 47 48 51 NATIONALUM 123 120 126 106 91
IEX 219 217 223 252 193 NAUKRI 4596 4504 4764 5279 5523
IGL 393 388 397 455 507 NAVINFLUOR 3938 3883 4031 4026 3718
INDHOTEL 207 203 213 198 169 NBCC 45 44 46 46 47
INDIACEM 210 205 218 211 194 NESTLEIND 17815 17578 18093 19079 18640
INDIAMART 5046 4993 5100 6268 7283 NMDC 158 156 161 141 157
INDIGO 2265 2217 2298 2011 1901 NTPC 137 135 138 131 125
INDUSINDBK 982 961 997 911 1005 OBEROIRLTY 912 903 928 900 783
INDUSTOWER 253 250 255 259 257 OFSS 3672 3628 3710 3929 4119
INFY 1721 1708 1741 1802 1653 ONGC 168 167 170 155 136
IOC 122 120 123 119 115 PAGEIND 39803 39161 40973 41153 35122
IPCALAB 994 978 1007 1036 1092 PEL 2422 2376 2499 2554 2434
IRCTC 831 823 840 848 660 PERSISTENT 4196 4128 4302 4434 3520
ITC 232 230 234 222 219 PETRONET 224 219 226 219 227
JINDALSTEL 436 432 443 395 402 PFC 121 120 124 122 127
JKCEMENT 3196 3130 3279 3404 3210 PFIZER 4451 4427 4488 4823 5335
JSWSTEEL 671 662 678 661 685 PIDILITIND 2432 2411 2464 2494 2299
JUBLFOOD 3080 3040 3140 3567 3572 PIIND 2554 2513 2609 2794 2937
KOTAKBANK 1828 1815 1848 1863 1855 PNB 40 39 40 39 40
L&TFH 74 74 75 78 85 POLYCAB 2367 2341 2401 2463 2152
LALPATHLAB 2837 2791 2894 3394 3468 POWERGRID 208 206 211 208 205
LAURUSLABS 550 535 566 513 574 PVR 1621 1599 1658 1461 1443
LICHSGFIN 391 384 402 376 420 RAIN 232 230 237 225 217
LT 1871 1851 1890 1909 1699 RAMCOCEM 873 865 884 960 1000
LTI 6000 5917 6142 6745 5503 RBLBANK 142 140 145 158 186
LTTS 4486 4426 4585 5208 4166 RECLTD 139 138 140 136 145
LUPIN 798 791 805 902 1014 RELIANCE 2376 2352 2393 2406 2306
M&M 854 839 865 848 818 SAIL 102 101 103 107 119
M&MFIN 155 153 157 157 164 SBICARD 847 840 857 899 1005
MANAPPURAM 153 150 157 164 173 SBILIFE 1133 1123 1144 1192 1123
MARICO 499 493 506 503 521 SBIN 530 525 536 496 454
MARUTI 8737 8652 8844 7892 7357 SHREECEM 24900 24662 25157 25994 27596
 PIVOTS AND DEALS
CMP Suppor Resistan 50- 200-
Company
(Rs) t* ce* DMA DMA
SIEMENS 2402 2386 2424 2360 2179 Bulk Deals
SRF 2477 2432 2550 2381 1935 Scrip B/ Qty Avg
Date Institution
name S (`000) price (`)
SRTRANSFIN 1236 1221 1257 1268 1369
POLICY
STAR 387 379 397 432 616 11-Feb ALOK BANSAL S 2858 825.0
BZR
SUNPHARMA 880 871 892 821 762 EAM EMERGING
STOVEK
11-Feb MARKETS SMALL S 166 663.3
SUNTV 518 509 533 510 524 RAFT
CAP FUND LP
SYNGENE 588 582 594 599 600
TATACHEM 915 895 952 932 851
Result Today: Coal India, Eicher Motors, Grasim
TATACOMM 1255 1235 1289 1386 1328 Industries, SpiceJet, Adani Enterprises, Adani Wilmar,
TATACONSUM 701 693 706 732 765 Rossari Biotech, AGS Transact Technologies, Apex
TATAMOTORS 499 495 505 492 390 Frozen Foods, Apollo Micro Systems, Balkrishna
TATAPOWER 232 228 240 232 171 Industries, Bharat Dynamics, BGR Energy Systems, Dish
TATASTEEL 1254 1237 1269 1155 1234 TV India, Equitas Holdings, Future Retail, Gateway
TCS 3695 3672 3735 3746 3508 Distriparks, Graphite India, Greenply Industries, Ipca Labs,
TECHM 1425 1414 1443 1623 1363 IRCON International, IVRCL, Jet Airways, KNR
TITAN 2442 2416 2474 2443 2069
Constructions, Manappuram Finance, MEP
Infrastructure, MTNL, Nagarjuna Fertilizers, Natco
TORNTPHARM 2591 2568 2605 3020 2958
Pharma, NBCC (India), Panacea Biotec, PC Jeweller, PTC
TORNTPOWER 495 487 508 555 497
India, RailTel Corporation of India, Repco Home Finance,
TRENT 1071 1051 1095 1069 978
Sadbhav Engineering, Shriram Properties, Spandana
TVSMOTOR 660 643 676 641 614 Sphoorty Financial, Sterling and Wilson Renewable
UBL 1593 1578 1614 1588 1503 Energy, Vivimed Labs, and Zuari Global.
ULTRACEMCO 7324 7258 7424 7421 7294
UPL 753 746 763 767 761
VEDL 378 372 384 341 306
VOLTAS 1192 1174 1219 1224 1132
WHIRLPOOL 1759 1738 1784 1827 2104
WIPRO 561 557 566 641 610
ZEEL 262 259 266 319 259

Corporate Snippets:
 ONGC: The company reported a 45 percent YoY
growth in revenue to Rs 1,45,685 crore in
Q3FY22 driven by higher realisation in its core
oil and gas business, Net profit zoomed 220% to
Rs 11,637 crore, powered by strong growth in
EBITDA margin. Both revenues from exploration
& production (E&P) and retail & marketing
businesses grew by 67 and 40 percent
respectively, while EBITDA margin was up grew
by 350 bps year-on-year to 14.7 percent.
 TVS Motor: Promoter Sundaram Clayton on
Friday sold around 95 lakh shares or 2% stake in
the company at an average price of Rs 635.97
per share via open market transaction on the
BSE. With this sale Sundaram Clayton stake will
be at around 50.26% from 52.26% earlier.
 Rategain Travel Technologies: The company
turned profitable in Q3FY22 reporting profit at
Rs 0.085 crore driven by strong growth in new
contract wins, against loss of Rs 1.89 crore in
previous quarter and loss of Rs 11.14 crore in
year-ago period. Revenue grew by 57.4 percent
to Rs 99.01 crore during the quarter as the
Economy Snippets:
company added 778 new clients and reported
overall 215 percent growth in new contracts
compared to the previous fiscal.
 Kalpataru Power Transmission: Profit in
Q3FY22 dropped 12.3 percent to Rs 270 crore
YoY due to a challenging operating environment
laden with inflated input prices and competitive
pressure. Revenue rose 11 percent to Rs 3,889
crore YoY led by robust project execution in B&F,
water and international T&D subsidiaries.
 Indigo Paints: The company clocked 29.4
percent year-on-year jump in net profit at Rs
24.30 crore in Q3FY22 due to strong revenue
growth and increase in product prices in mid-
late Q3 to mitigate the sharp escalation in raw
material prices. Revenue rose 26.6 percent to Rs
265.46 crore YoY.
NEWS SNIPPETS
 VA Tech Wabag: The company reported 19.6
percent YoY growth in profit at Rs 45.49 crore
as EBITDA margin improved by 180 bps YoY to
10.6 percent. Higher project mix of industrial &
international orders and execution pace helped
the company improve margins. Revenue drops
6.3% to Rs 745.48 crore YoY.
 Force Motors: The net loss widened to Rs 39.90
crore in Q3FY22 against Rs 14.94 crore a year
ago due to increase in raw material prices.
Revenue jumped 57 percent to Rs 778 crore YoY
in during the quarter.
 Metropolis Healthcare: The company posted a
29.7 percent YoY decline in its net profit in
Q3FY22 at Rs 41.21 crore as EBITDA margin
dropped by 530 bps YoY to 27.5 percent due to
increase investments in digital and marketing,
manpower & customer experience initiatives in
order to strengthen its brand. Revenue in
Q3FY22 rose 6.6 percent to Rs 293 crore YoY
with sharp drop in volumes from government
contracts.
 IIP: Industrial Output Growth Falls to A 10-
Month Low in December (Bloomberg Quint)
 Exports of agri, processed food through APEDA
may exceed $23.7 billion in FY22 (PTI)
 Coal Ministry Successfully Auctions Ten Coal
Mines of Five States in the latest Effort (PIB)
 EVENT CALENDAR
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1-Feb 2-Feb 3-Feb 4-Feb 5-Feb
Bank Of England
OPEC-JMMC Meeting Monetary Policy
India Union Budget US Non-Farm
@ All the Day, US ADP Report @ 17.30
@ 11.00 am Employment
Non-Farm pm, European
onwards, India Change and
Central Bank
January Auto Employment Change Unemployment
Monetary Policy
Sales @ All the Day @ 18.45 pm Rate @ 18.45 pm
Report @ 18.15
pm
6-Feb 7-Feb 8-Feb 9-Feb 10-Feb 11-Feb 12-Feb
OPEC Monthly
IEA Monthly
Caixin Services Interest Rate Decision, Report, Jobless
Report, Fed
Economy Watchers M3 Money Supply INR, Claims 4-Week
PMI (Jan), Monetary Policy
FX Reserves Current Index (Jan) EIA Refinery Crude Runs Avg., Federal
Chinese Report USD,
(USD) (Jan) CNY JPY, Trade Balance (WoW) USD, FOMC Budget Balance
Composite PMI Manufacturing
(Dec) USD Member Mester Speaks (Jan) USD,
CNY Output (MoM)
USD BoE Gov Bailey
INR
Speaks GBP
13-Feb 14-Feb 15-Feb 16-Feb 17-Feb 18-Feb 19-Feb
Trade Balance (Jan)
WPI Inflation, CPI Retail Sales (YoY) (Jan) Philly Fed
INR, US Foreign
INR, GDP Capital USD, Business Business US Leading Index
Buying, T-bonds
Expenditure (QoQ) Inventories (MoM) (Dec) Conditions (Feb) (MoM) (Jan) USD
(Dec) USD, CPI
(Q4) JPY, USD, USD
(MoM) (Jan) CNY
20-Feb 21-Feb 22-Feb 23-Feb 24-Feb 25-Feb 26-Feb
House Prices
(YoY) (Jan) CNY
27-Feb 28-Feb
 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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