Nifty Derivative Snapshot & Derivative Stocks Recommendations

NIFTY (8286) CNX Nifty opened flat and witnessed a lot of intraday swings but with positive bias. In the last hour of session the bulls over powered the bears and the index managed to cross and close above its crucial hurdle of 8280 levels with the gain of 72 points. Although it settled the day in positive territory but still continued its negative pattern of making lower highs – lower lows. Now, index needs to hold above 8280 zones to witness a bounce back move towards 8380-8420 zones. While, if it fails to hold its 8250 levels then profit booking may continue to drag the index towards 8180-8150 levels. Traders need to trade cautiously ahead of the fourth quarterly corporate result season, FOMC meet and Derivatives settlement week.

Benchmark indices managed to bounce back and close above crucial 200 day simple moving average in yesterday's trade, thanks to a gain of about 72 points observed in NIFTY that ended the day at 8,286 mark. The up move was led by select front line Auto and Banking stocks that had delivered better than expected quarterly earnings (ICICI Bank - up ~8% while Maruti - up ~5%).

• NSE Cash segment witnessed a turnover of about Rs19,098 crores as compared to Rs18,945 crores earlier.
• Overall market breadth remained negative, with 775 stocks advancing against 361 stocks declining.
• Sectorally, Bank NIFTY, CNX Finance and CNX Auto emerged as top gainers up between 2.7% to 2.4% each respectively. While on other hand, CNX FMCG emerged as top loser down 0.9%.

CNX NIFTY OUTLOOK

• Benchmark indices witnessed sharp reversal from its 200 Day Simple moving average in yesterday's trade and also managed to close above the same. Sharp up move across the board especially in last one hour of trade did help the index to move past 8,300 mark during the intraday trades. Unfortunately, sell-off in the front line counters in last few minutes, ensured a close below 8,300 for NIFTY. Going forward, NIFTY should manage a close above 8,200 for a move towards 8,500 mark on higher side while at the same time close below the same can be extremely negative in short term.
• As for the day, support is placed at 8,180 and then at 8,140 levels, while resistance observed at 8,320 and then at 8,380 levels
• Nifty opened flat and traded in a small range before gaining in the second half of the trading session to close positive. 
• Nifty added 71 points to close at 8285.
• OI concentration is seen at 8200 PE and 8500 CE.
• Activity witnessed in 8300 strike.
• PCR OI stands at 0.77 compared to 0.69 in the previous trading session.
• Nifty to trade with a resistance of 8580
• Put Call Ratio based on Open Interest of Nifty moved up from 0.78 to 0.84 levels. Historical Volatility of Nifty fell down from 18.40 to 18.27 levels and Implied Volatility also fell down from 18.40 to 17.26 levels.

Stocks

• Banking and Auto stocks gained to support Nifty to close in the green.
• In the four wheeler space, M&M has arrested its fall and now trades with a strong support of 1165 levels. The stock has managed to trade above this and has closed above the same. The stock has showed signs of reversal in the previous trading session. The RSI also indicates a positive bias. One can trade the same for a near term target of 1230.
• Market wide open interest is seen at Rs.254,185Cr.
• Amongst sectoral index, CNX FMCG adds fresh short position.
• Just Dial observed build up in short position.

COALINDIA has been falling down from last three weeks and witnessing sustained selling pressure at higher levels. It has immediate support near to 372 levels and below that fresh shorts may take the stock to 363 and further lower levels. Thus one can sell the stock with a stop loss of 387 levels for the downside target of 363 levels. 

Sell Between Rs. 377 to 381,Stop Loss387,Target363 

SIEMENS is holding the gains and slowly moving upwards even after the market decline. It has taken multiple supports near to 1216 zone and negated its negative pattern of forming lower highs - lower lows. The stock witnessed built up of long position with an open interest addition of around 6% in previous trading session. Thus, traders can buy the stock with stop loss of 1250 for the upside target of 1325 levels. 

Buy Between Rs. 1269 to 1281,Stop Loss1250,Target1325