Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8325) CNX Nifty opened gap up and continued its northward journey forming higher highs – higher low for the second trading session. It breached its 200 DMA on he upside surpassing its 8320 levels and started moving towards its 50 and 35 DMA. Finally, after a positive day index settled with the gains of around 135 points. Now it has to hold above 8320 zones to continue up move towards 8380 and 8420 levels. On the downside, if it fails to sustain 8250 then its momentum may fizzle out and profit booking may drag the index towards 8220 and 8180 levels. Traders need to be cautious as the index is highly volatile ahead of the 4th quarterly result season, CPI, IIP and WPI data. 

CNX NIFTY gradually inched higher post firm opening, but after crossing 8,300 mark (i.e. from 8,225 level) consolidated in narrow range and finally, finished trade at 8,325 level, with gain of 134 points.

• NSE Cash segment witnessed a turnover of about Rs16,383 crores as compared to Rs16,758 crores earlier.
• Overall market breadth remained positive, where 1045 stocks advanced against 436 declined stocks.
• Except CNX FMCG (lost 0.3%) positive trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK, CNX AUTO & CNX METAL emerged as top gainers with the increase of 6.2%, 2.8% & 2.7%, respectively.

CNX NIFTY OUTLOOK

• CNX NIFTY managed to regain 8,300 mark with second consecutive up tick, where buying across the board, except FMCG counters supported the move. Currently, index is trading around its weekly high (i.e. placed around 8,356 level) and we believe any close above the same will be positive and find resistance around 8,600 mark thereafter. However, in case of any adverse action, support around 8,100-8,000 range will limit the down side in NIFTY.
• As for the day, support is placed at 8,250 and then at 8,200 levels, while resistance observed at 8,370 and then at 8,420 levels.
• Nifty continued its uptrend as it comfortably closed above 8300 levels.
• Nifty added 133 points to close at 8325.
• OI concentration is seen at 8000 PE and 8500 CE.
• Addition witnessed in 8500CE and in 8200PE .
• PCR OI stands at 1.13 compared to 1.00 in the previous trading session.
• Nifty to trade with a resistance of 8450.

Stocks 

• Banking, Auto and It stocks surged as Nifty scaled higher.
• From the IT space, Infy has bounced back from its lows of 1920 levels. The stock has surged from those levels and has gained considerably in the previous trading session. The stock now trades with a positive bias in the monthly, weekly and daily charts. The stock has enough space on the upside. One can buy ATM call options and hold in the same. 
• Market wide open interest is seen at Rs.203,497Cr.
• Amongst sectoral index, CNX Auto adds fresh long position. 
• Hindalco observed build up in long position.

SBIN has negated its negative trend and showing the early sign of recovery as it is moving after forming a support base at around 260 zones. It looks attractive in terms of risk reward ratio and is also adding fresh long position at support zones. Thus showing the potential to move towards 280 and higher levels. One can buy the stock with stop loss of 264 for the upside target of 280 levels. 

Buy Between Rs. 268 to 271,Stop Loss 264,Target 280 

DLF has been witnessing sustain selling pressure at every small bounce back move and in previous session it was under the bears grip even after strong up move in the broader market. It has been witnessing built up of short position and call writing at higher strike which will keep the upside limited. Traders can sell the stock on bounce back move with stop loss of 134 for the upside immediate target of 126.5 levels. 

Sell Between Rs. 133 to 134,Stop Loss 137,Target 126.5