Nifty Derivative Snapshot & Derivative Stock Recommendations

CNX NIFTY slipped to 8,680 mark post firm opening, but later with the gradual advance managed to visit 8,731 level and after a narrow range oscillation finished trade at 8,714 mark, with the gain of 54 points. 

• NSE Cash segment witnessed a turnover of about Rs20,168 crores as compared to Rs18,092 crores earlier.
• Overall market breadth remained positive, where 968 stocks advanced against 545 declined stocks.
• Except CNX FINANCE & BANK NIFTY ( reported a fall of 0.6%-0.3%), positive trend was witnessed amongst all sectoral indices during the day, where CNX IT, CNX METAL, CNX FMCG & CNX ENERGY emerged as top gainers with the increase of 1.9%-1.6%.
• Nifty added 54 points to close at 8714.
• OI concentration is seen at 8500 PE and 9000 CE.
• Addition witnessed in 8800CE and 8700PE.
• PCR OI stands at 1.25 compared to 1.14 in the previous trading session.
• Nifty to trade with a resistance of 8850.

CNX NIFTY OUTLOOK

• CNX NIFTY regained 8,700 mark with a straight fourth uptick. As mentioned earlier, our near-term technical view will remain positive for index with probable up move towards 8,800- 9,000 levels, however profit booking cannot be ruled out in the recommended range. In case of any adverse action, index will find support around its 100-days SMA (i.e. placed at 8,550 mark).
• As for the day, support is placed at 8,670 and then at 8,600 levels, while resistance observed at 8,790 and then at 8,850 levels.
• Put Call Ratio based on Open Interest of Nifty moved up sharply from 1.01 to 1.04 levels.Historical Volatility of Nifty fell down from 18.59 to 18.23 levels and Implied Volatility also moved up from 13.88 to 13.99 levels. 

Stocks

• Reliance, TCS and ITC supported Nifty above 8700 levels.
• In the Cement space, Ultratech cement has made a 'U' shaped recovery as it gained in the previous two trading sessions. The stock trade with a positive bias on the weekly and daily charts. The stock has gained backed with buying interest. The RSI and MACD also indicate a positive trend. One can enter the same at current levels for a near term target of 3050/3070.
• Market wide open interest is seen at Rs.205,426Cr
• Amongst sectoral index, CNX Metal adds fresh long position.
• REC observed build up in long position while SUN TV observed build up in short position.

ORIENTBANK has been falling continuously from last three series and witnessing built up of short position. It has been making lower top lower bottom formation as it corrected sharply from 341 to 202 levels. It has broken the major support of 230 levels and now further weakness may drag the stock to 199 levels. One can sell the stock with a stop loss of 211 levels for the downside immediate target of 199 levels

Sell Between Rs. 206 to 208,Stop Loss 211,Target 199