Wednesday, May 13, 2015

Nifty Derivative Snapshot & Derivative Stocks Recommendations

NIFTY (8127) CNX NIFTY opened flat and witnessed sustained selling pressure across the board till the end of session. The index faced heavy profit booking after the two day relief rally and plunged down by almost 211 points from the day’s high of 8326 towards the intraday low of 8115 levels. The index wiped off the previous two day’s gain to close on with a loss of around 200 points. Now till it doesn’t cross and hold above 8181 zones, weakness may continue to drag it towards next major support of 8080 and then psychological 8000 levels. On upside crucial hurdles seen at 8181 followed by 8220 and 8250 zones. Traders need to be cautious as bears are controlling the index and over powering the bulls.

CNX NIFTY begun the session on flat note around 8,327 mark, but later with sharp sell-off slipped below 8,200 level and post such decline, extended loss during the day and finally, shut the shop with loss of 198 points at 8,127 level.
  • NSE Cash segment witnessed a turnover of about Rs.16,692 crores as compared to Rs.16,383 crores earlier.
  • Overall market breadth remained negative, where 290 stocks advanced against 1202 declined stocks.
  • Negative trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK, CNX REALTY, BANK NIFTY, CNX METAL & CNX FINANCE emerged as top losers with the decrease of 3.7% - 3%.

CNX NIFTY OUTLOOK
  • CNX NIFTY witnessed mammoth selling pressure post two days of consecutive rise, as it lost 2.4% amidst weakness across the globe. We believe index will remain under pressure till the time it trades below 8,356 level (i.e.2-week low) and if it violates 8,000 mark, will face 200-300 points of fall from there.
  • As for the day, support is placed at 8,070 and then at 8,000 levels, while resistance observed at 8,200 and then at 8,250 levels.
  • Nifty saw a sharp sell-off as Nifty lost more than 2.3%.
  • Nifty lost 198 points to close at 8126.
  • OI concentration is seen at 8000 PE and 8500 CE.
  • Addition witnessed in 8500CE and in 8200PE .
  • PCR OI stands at 0.97 compared to 1.13 in the previous trading session.
  • Nifty to trade with a support of 8050.

Stocks
  • Most sectors traded negative as Nifty lost ground.
  • From the reality space, DLF has broken all major support levels in the previous session and has given a negative closing. The stock continues to trade with a negative bias as we expect it to stoop to lower levels in the next few trading sessions. On the lower side the stock can stoop down to levels of 118.
  • Market wide open interest is seen at Rs.207,312Cr.
  • Amongst sectoral index, CNX Metal adds fresh short position.
  • UCO Bank and UPL observed build up in short position.

DLF has been witnessing sustain selling pressure and broken its immediate support of 127 zones. 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 122 levels. 

Sell Between Rs. 129 to 131,Stop loss 134,Target 122 














JSWSTEEL has been forming lower highs- lows from last five series and also witnessing liquidation of long position with sustained selling pressure at every small bounce back move. It is continuously trading in the bears grip and holding below 900 may continue its weakness towards 874 and lower levels. It was under the selling pressure even when index was trading at lifetime high territory and is continuously trading in the bears grip. One can sell the stock with a stop loss of 915 levels for the downside immediate target of 860 levels. 

Sell Between Rs. 892 to 901,Stop Loss 915,Target 860 


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