Money Trend 20th Oct 2021

CNX Nifty CMP 18418

Daily Chart Synopsis

 Nifty gave a gap up opening but traded downwards

throughout the day, and closed in red at 18418, it
formed a long bearish candle on daily chart implying
weakness in the index. From Fibonacci projections its
next immediate support are at 18350 then 18250;
while resistances are at 18600, 18750.

 When plotting Bollinger band, it depicts that the

index opened above the upper band and fell on the
upper band; It closed at Bollinger’s upper band, thus
closing at support levels. From the momentum
indicator, RSI (14) is reading at 74.6 implies high
momentum and in overbought as well; therefore the
trend is in extreme momentum and in overbought
zone.

 Now, tracking the derivative data of Nifty, the

highest open interest for Call is at 18500 and 18600
i.e. 38.4 and 44.4 indicating strong resistance at
18540 above which it can test 18600 then 18750;
while on Put side 18400 then 18300 depicts highest
open interest i.e. 24.2 and 32.3 which indicates
strong support zone at 18350 zones.

 Thus, the above evidences suggest that if prices hold

above 18350 levels then rally toward 18540-18600
then 18750 would be seen. Nevertheless, if it breaks
below 18350 then a fall towards 18250 then 18150 is
expected. Overall trend is bullish.

Close R1 R2 R3 S1 S2 S3
18418 18540 18600 18750 18350 18250 18150
s

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Money Trend 20th Oct 2021

Bank Nifty CMP 39540

Daily Chart Synopsis

 On daily chart, Bank-Nifty opened with a gap up and

traded sideways in first half of the session later, it
declined & closed in red near yesterday’s low at
39540. This long red candle indicates weakness in the
market.

 The index closed at upper Bollinger band levels which

indicate that the trend remains bullish. Moreover,
momentum indicator RSI (14) is reading at 73 also
implies high bullish momentum and overbought
zone. Therefore, it suggests that the trend is in
overbought zone & may show some pause i.e.
sideways trend ahead.

 From, derivative perspective, Bank Nifty has highest

open interest in Call at 39800 and 40000 i.e. 11.6 and
23.2; while on Put side highest open interest is at
39500 then 39000 i.e. 11.9 and 10.71 this implies
that strong support is 39500 and then 39200. Thus, if
price breaks above 39800 then 40000 plus levels are
possible. Alternatively, violation below 39500 would
further push index towards 39200-39000 levels.

 The above evidences suggest that if Bank-Nifty falls

below 39400 then a sharp correction towards 39000
is expected. Alternatively, a rise above 39800 would
lead prices to 40000 then 40500 levels.

Close R1 R2 R3 S1 S2 S3
39540 39800 40000 40500 39400 39000 38800

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Money Trend 20th Oct 2021

Research Team
Vivek Mahajan Hemant Thukral
Head - Fundamental Desk Head – Derivatives Desk
022-6819 0549 022-6819 0550
vivek.mahajan@adityabirlacapital.com hemant.thukral@adityabirlacapital.com

Fundamental Team
Vidrum Mehta Auto / Capital Goods 022-6819 0537 vidrum.mehta@adityabirlacapital.com

Jaymin Trivedi Banking & Finance 022-6819 0511 jaymin.trivedi@adityabirlacapital.com

Naveen Baid IT/M&E/Healthcare/Telecom 022-4356 7848 naveen.baid@adityabirlacapital.com

Suresh Gardas Pharma & Chemicals 022-6819 0513 suresh.gardas@adityabirlacapital.com

Sumeet Shah Chemical / Telecom 022-68190541 Sumeet.shah1@adityabirlacapital.com

Mahavir Jain Mid – Cap 022 6819 0518 mahavir.jain@adityabirlacapital.com

Mohan Jaiswal Technical Analyst 022-6819 0515 mohan.jaiswal@adityabirlacapital.com

Hemal Shah Equity Advisor 022-6819 0552 Hemal.Shah3@adityabirlacapital.com

Advik Shetty IT/M&E/Healthcare/Telecom 022-68190541 advik.shetty@adityabirlacapital.com

Quantitative Team
Sujal Shah Technical Analyst – Derivative Desk 022-68190523 sujal.shah@adityabirlacapital.com

Smita Dhale Assistant Manager – Derivative Desk 022-6819 0519 smita.dhale@adityabirlacapital.com

ABML research is also accessible in Bloomberg at ABMR

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Money Trend 20th Oct 2021
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