Nifty Derivative Snapshot & Derivative Stock Recommendations

CNX NIFTY rose to 8,608 level post stable opening, but after oscillating in 8,595- 8,565 range till late noon session, index slipped to 8,541 mark and finally, ended the day with

the loss of 20 points at 8,551 level.

• NSE Cash segment witnessed a turnover of about Rs13,648 crores as compared to Rs20,171 crores earlier.
• Overall market breadth remained negative, where 413 stocks advanced against 1098 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where none of the secotal indices have registered a rise of more than 0.3% and CNX PSU BANK & CNX IT emerged as top losers with the decrease of 1.2% & 1% respectively.
• Nifty lost 20 points to close at 8550.
• OI concentration is seen at 8500 PE and 9000 CE.
• Activity witnessed in 8600 strike.
• PCR OI stands at 0.84 compared to 0.86 in the previous trading session.
• Nifty to trade with a resistance of 8730.

CNX NIFTY OUTLOOK

CNX NIFTY begun week on a dull note, where index continued prior falling trend. As mentioned earlier, our near-term technical view remains negative till the time index trades below its 20- days EMA (i.e. placed around 8,700 mark.) and in case of further decline, find support around lower band of the rising channel (i.e. placed around 8,400 mark).

As for the day, support is placed at 8,510 and then at 8,470 levels, while resistance observed at 8,630 and then at 8,700 levels.

Put Call Ratio based on Open Interest of Nifty fell down from 0.87 to 0.85 levels. Historical

Volatility of Nifty fell down from 17.72 to 17.29 levels and Implied Volatility also fell down from 14.87 to 14.37 levels. 

Stocks 

• Reliance, BHEL and ICICIBank kept Nifty under pressure. 
• From the banking and financial space, HDFC ltd has been consolidating in a 20 point range. We expect the stock to break away on the upside in the next few trading sessions. This would open up significant space for the stock. The stock trades with a positive bias in the monthly, weekly and daily charts. One can trade the same at current levels for a near term target of 1400 and higher. 
• Market wide open interest is seen at Rs.251,141cr.
• Century Tex observed build up in long position while Allahabad Bank observed build up in short position.
• Sectoral Activity: Amongst sectoral index, CNX PSU Bank adds fresh short position.

Future Short Term Recommendations 

ADANIENT has broken the immediate support of 600 levels and fell down towards 595 levels. It has witnessed addition in open interest with falling prices indicating shorts are being built in the stock. It is also making a negative price pattern which may also attract to initiate fresh short position. 

Traders can sell the stock with stop loss of 623 for the downside immediate target of 587

levels. 

Sell Between 608 to 614,Stop Loss 623,Target 587 

BANKINDIA has been witnessing sustained selling pressure from last three series and has been making lower highs as it has corrected sharply from 311 to 209 levels. It has broken the weekly support of 225 levels, so fresh weakness and built up of short position may drag the stock to lower levels.

Thus one can sell the stock with a stop loss of 218 levels for the downside target of 206 levels.

Sell Between 213 to 215,Stop Loss 218,Target 206