Nifty Derivative Snapshot & Derivative Recommendations

CNX NIFTY witnessed roller-coaster ride during the day, where index oscillated in 8,786-8,682 range before closing the session at 8,778 mark, with gain of 64 points. 

• NSE Cash segment witnessed a turnover of about Rs21,112 crores as compared to Rs20,168 crores earlier.
• Overall market breadth remained positive, where 800 stocks advanced against 710 declined stocks.
• Except CNX PHARMA & CNX REALTY ( reported a fall of 2.1%-0.8%), positive trend was witnessed amongst all sectoral indices during the day, where CNX MEDIA, CNX PSU BANK & BANK NIFTY emerged as top gainers with the increase of 3.5%-2.5%.
• Nifty added 63 points to close at 8778.
• OI concentration is seen at 8500 PE and 9000 CE.
• Addition witnessed in 8700PE and Reduction in 8800CE.
• PCR OI stands at 1.31 compared to 1.25 in the previous trading session.
• Nifty to trade with a resistance of 8850.

CNX NIFTY OUTLOOK

• CNX NIFTY managed to close on one month high level with its fifth consecutive rise. We believe undergoing momentum will curb intraday volatility and ease index to visit 8,800- 9,000 range, however higher level profit booking cannot be ruled out. In case of any adverse action, index finds support around its 100-days SMA (i.e. placed at 8,550 mark).
• As for the day, support is placed at 8,730 and then at 8,670 levels, while resistance observed at 8,850 and then at 8,920 levels
• Put Call Ratio based on Open Interest of Nifty moved up sharply from 1.04 to 1.07 levels. Historical Volatility of Nifty fell down from 18.23 to 17.86 levels and Implied Volatility also moved up from 13.99 to 14.11 levels.

Stocks

• Reliance, and Banking stocks gained to support Nifty at higher levels.
• In the Metal space, TATASteel has made a sharp recovery from its lows of 318 levels. The stock trade with a positive bias on the monthly, weekly and daily charts. The stock has gained broken its previous resistance of 338 and closed above it.The volumes in the previous three trading sessions have also been significantly high. The RSI and MACD also indicate a positive trend. One can enter the same at current levels for a near term target of 365/370.
• Market wide open interest is seen at Rs.208,589Cr.
• Amongst sectoral index, CNX PSU Bank adds fresh long position
• India Cem and Colpal observed build up in long position while Havells observed build up in short position.

GAIL is falling down from the last five series and it witnesses selling pressure at every minor bounce back move as it couldn’t hold above immediate hurdle of 420 zones. It is making a negative price pattern and also witnessing liquidation of long positions. One can sell the stock with a stop loss of 413 levels for the downside immediate target of 389 levels. 

Sell Gail Between Rs. 403 to 407,Stop loss 413,Target 389