Nifty Derivative Snapshot & Derivative Stocks Recommendations

NIFTY (8240) CNX Nifty opened negative and traded with a cautious view ahead of the fourth quarterly corporate result season, FOMC meet and Derivatives settlement day. It has been forming lower highs from last five trading sessions and failed to continue the positive move of previous trading session thus indicating that the index is still in the bears grip. It has to negate its negative pattern of lower highs to bounce back and witness buying interest towards 8350-8380 zones. The index closed in negative territory with a loss of around 50 points. Now, index needs to cross and hold above 8280 zones to witness a bounce back move towards 8320-8340 zones. While, if it fails to hold its 8220 levels then further profit booking may drag the index towards 8180-8150 levels. 

Benchmark indices witnessed extremely high volatility as NSE's NIFTY oscillated wildly between the low and high of 8,308 to 8,219 mark during the trade. Finally it ended the trade with the loss of about 46 points at 8,240 mark.

• NSE Cash segment witnessed a turnover of about Rs16,081 crores as compared to Rs19,098 crores earlier.
• Overall market breadth remained positive, with 838 stocks advancing against 630 stocks declining.
• Sectorally, it remained a mixed day of trend with CNX FMCG emerging as top loser down 1.7% while CNX Realty emerged as top gainer up 0.8%.
• Put Call Ratio based on Open Interest of Nifty fell down from 0.84 to 0.81 levels. Historical Volatility of Nifty fell down from 18.27 to 17.97 levels and Implied Volatility also fell down from 17.26 to 17.07 levels. 

CNX NIFTY OUTLOOK

• Benchmark indices continues to oscillate around it 200 day simple moving average from past couple of trading sessions. While in past three trades we did see supply coming in at higher levels of above 8,300 mark, the lower levels, i.e. anything around 8,200 mark on NIFTY was seen as buying opportunity. Thus, as mentioned earlier, for any meaningful rally towards 8,500 mark, NIFTY needs to manage its close above 8,200 mak on daily chart. Any move below the same can trigger a fresh wave of sell offs.
• 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 had a volatile trading session and closed on a weak note.
• Nifty lost 45 points to close at 8239.
• OI concentration is seen at 8200 PE and 8400 CE.
• Activity witnessed in 8300 strike.
• PCR OI stands at 0.69 compared to 0.77 in the previous trading session.
• Nifty to trade with a resistance of 8580.

Stocks

• ITC, BhartiArtl and Reliance kept the pressure on Nifty.
• In the IT space, Wipro has rebounded from its lows of 520 levels and continued to gain in the past three trading sessions. The stock has given a strong closing in the previous trading session. It remains positive in the weekly and daily charts. The RSI also supports the upmove. We expect the stock to gain in the next few trading sessions. One can accumulate the same at current levels for a near term target of 562.
• Market wide open interest is seen at Rs.259,397Cr.
• Amongst sectoral index, CNX FMCG adds fresh short position.
• Godrej Ind and Dabur observed build up in short position.

ADANIENT has been making higher top - higher bottom price formation from last five weeks and continuously holding the gains even after the weakness in the broader market. It gave the highest daily close of last thirty five trading sessions and is moving upwards with rising and delivery volumes which is also supporting our positive view on the market. Traders can buy the stock with stop loss of 655 for the upside immediate target of 694 levels. 

Buy Between Rs. 665 to 671,Stop Loss 655,Target694 

ACC confirmed a bearish pattern as it failed to sustain the higher levels and fell down below its crucial support of 1502 levels. It has been witnessing built up of short position and is trading in the bears grip from last two series. Traders can sell the stock with stop loss of 1535 for the downside target of 1447 levels. 

Sell Between Rs. 1498 to 1513,Stop Loss 1535,Target 1447