Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8235) CNX Nifty opened positive and climbed to its 8200 levels during the session. The index witnessed a roller coaster session throughout the day as it was swinging between positive and negative territory. However, in the later part of the day bulls over powered the bears as the index managed to settle the volatile day in the green territory with the gains of more than 100 points. Now it has to cross and hold above 8250 zones to continue up move towards 8300 and 8320 levels. On the downside, if it fails to sustain 8180 then its momentum may again fizzle out and profit booking may drag the index towards 8120 and 8080 levels. Traders need to be cautious as the index is highly volatile ahead of the 4th quarterly result season and WPI data.

CNX NIFTY begun the session on a firm note, but later reversed from 8,255 level and slipped to 8,090 mark till noon session. However, in second half index utilized narrow range consolidation to climb higher level and finally, closed the session with gain of 109 points at 8,235 level.

• NSE Cash segment witnessed a turnover of about Rs18,580 crores as compared to Rs16,692 crores earlier.
• Overall market breadth remained positive, where 974 stocks advanced against 499 declined stocks.
• Except CNX MEDIA & CNX REALTY (lost 0.9%-0.8%), positive trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK, BANK NIFTY & CNX FINANCE emerged as top gainers with the increase of 2.7% - 2.6%.

CNX NIFTY OUTLOOK

• CNX NIFTY managed to recover partial loss after a mammoth sell-off amidst heavy buying in banking and finance counters. We still believe that index will remain under pressure till the time it trades below its 2-week high (i.e. placed around 8,356 level), but any stable move above that level will support NIFTY to visit 8,600 mark in near-term. However, support around 8,000 mark will restrict the fall in case of any adverse action.
• As for the day, support is placed at 8,120 and then at 8,070 levels, while resistance observed at 8,320 and then at 8,400 levels.
• Nifty witnessed an extremely volatile session.
• Nifty added 108 points to close at 8235.
• OI concentration is seen at 8000 PE and 8500 CE.
• Activity witnessed in 8300 strike.
• PCR OI stands at 1.01 compared to 0.97 in the previous trading session.
• Nifty to trade with a support of 8090.

Stock

• Banking stocks and Reliance gained as Nifty gained above 8200 levels.
• From the Oil&Gas segment, Gail which had been trading with a resistance of 376 has broken it and closed comfortably above it in the previous trading session. As the stock trades with a positive RSI and MACD, one can enter ride the momentum. The stock has considerable space on the upside.
• One can trade the same for a near term target of 400.
• Market wide open interest is seen at Rs.208,881Cr.
• Amongst sectoral index, CNX Realty adds fresh short position.
• Lupin and Apollo Hospital observed build up in short position.

BATAINDIA is moving after taking multiple support at 1000 levels and turning from the lower band of the trading range. It is giving an early signs of breakout from the falling supply trend line with fresh built up of long position. One can buy the stock with stop loss of 1023 for the upside target of 1087 levels. 

Buy Between Rs. 1039 to 1050,Stop Loss 1023,Target 1087 

BHARTIARTL has formed a negative pattern and is not able to recover even after the upside move in the broader market. It broke its support zone and continuously trading in the bears grip from last three trading sessions with liquidation of long positions. Traders can sell the stock on bounce back move with stop loss of 400 for the upside immediate target of 376 levels. 

Sell Between Rs. 390 to 394,Stop Loss 400,Target 376