BENCHMARK INDICES

NIFTY FUTURE INDEX

CAPITAL WAYS INVESTMENT ADVISER

DERIVATIVES DAILY REPORT

Wednesday 03-03-2021

Nifty index closed at 14983.00 UP 185.25 or +1.25 per cent. The broad-based rally in domestic equities have

helped equal-weight funds steal thunder over their underlying market capitalisation-weighted indices. During

the past one year, DSP Equal Nifty 50 Fund, Principal Nifty 100 Equal Weight Fund and Sundaram Smart Nifty 100

Equal Weight Fund have generated returns in the range of 38-42 per cent. Ferocious selling was seen in last

Friday’s session, which led to heavy short build up by FIIs on the index futures. However, due to no follow-up

selling, we have witnessed short covering in Monday’s trading session. On a net basis, FIIs are still bullish and

have 40,000 net long contracts. India VIX has cooled off in the last two trading sessions after spiking up 28% in

Friday’s session. We expect volatility to remain elevated. Indian rupee strengthened after a sharp fall in past two

sessions as rebound in domestic equities improved sentiment and demand for dollar eased after a pullback in

crude oil and yields. Despite bulls making an impressive attempt to rally into the bearish gap zone of 14,919 –

15,065 levels, registered on last February 26, 2021, one needs to be cautious as this pull back attempt may get

faltered unless Nifty closes above 15,100 levels. In the next trading session, if the index manages to get past

14,959 levels then intraday strength may get extended into the zone of 15,065 – 15,100 levels whereas

weakness can be expected if it slips below 14,850 levels. At the interbank forex market, the local unit opened at

73.32 against the greenback and witnessed an intra-day high of 73.31 and a low of 73.48.

BANKNIFTY FUTURE INDEX

Bank nifty today closed at 36548.30 Up +79.60 points or +0.22 per cent. The Nifty PSU Bank, Pharma, and Auto indices ended 1 per cent higher each. As regards the derivatives series, the Nifty Metal, PSU Bank, and Bank indices advanced 20.5 per cent, 39 per cent, and 19 per cent, respectively. In another development, RBI governor Shaktikanta Das said today that the Reserve Bank of India did not compromise on its balance sheet while providing liquidity to the bond market through asset purchases as the purchases were risk-free government bonds only. Lastly, on the economic front, global rating agency Moody's said today that India's weak fiscal position will remain a key credit challenge in 2021. Moreover, it said the prospects for fiscal consolidation remain weak, particularly given the government's mixed track record of implementing revenue-raising measures. The index formed a Doji kind of candle on daily scale as it closed near its opening levels but emergence of long lower shadow indicates that declines are being bought. Now Bank Nifty has to continue to hold above 35,000 to witness a bounce towards 36,000 and 36,250 while on the downside support is seen at 35,000 then 34,500. Now Bank Nifty has to continue to hold above 35,000 to witness a bounce towards 36,000 and 36,250 while on the downside support is seen at 35,000 then 34,500 levels. Dollar demand eased after a pullback in crude oil and bond yields which supported the rupee sentiment, At the interbank forex market, the local unit opened at 73.32 against the greenback and witnessed an intra-day high of 73.31 and a low of 73.48. It finally ended at 73.37 against the American currency, registering a rise of 18 paise over its previous closing. On Monday, the rupee had settled at 73.55 against the American currency. The rupee had lost 1.66 per cent in three sessions to Monday.

INTRADAY DERIVATIVES STOCK RECOMMENDATION

STRATEGY-

ASIANPAINT FUT- UPSIDE TARGET BUY ASIANPAINT -FUT AT 2410.10 TARGET 2440 STOPLOSS 2390 WE SEEING STOCK HAS GREAT BULLISHNESS AND CALL GIVEN ON LEVEL. Intraday levels We expect prices to trade At 2410.10 and price is expected to Rise up to 2440

STRATEGY

MGL FUT -DOWNSIDE TARGET SELL MGL FUT BELOW 1172 TARGET 1160 STOPLOSS – 1180 TRAND OF STOCK IS DOWNTREND AND CALL WAS GIVEN BELOW S1. RSI ASLO SUPPORTIVE FOR SHORT . Intraday levels We expect prices to trade BELOW 1172 and price is expected to fall up to 1160

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