Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8224) CNX Nifty opened flat but could not cross previous day’s high of 8255 levels and traded inside the trading range of previous sessions. The bears controlled the index for major part of the day as it failed to sustain immediate hurdle of 8250 zones and plunged down towards day’s low of 8137 levels. Finally after the intraday swings the index settled the day with the marginal loss of 12 points. Now it has to cross and hold above 8250 zones to witness an up move towards 8280 and 8320 levels. On the downside, if it fails to sustain 8180 then its momentum may 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.

CNX NIFTY spent entire session below the neutral line, where recovery after an initial decline failed to push index out of the woods during the day and finally, closed the session with loss of 11 points at 8,224 level.

• NSE Cash segment witnessed a turnover of about Rs.16,093 crores as compared to Rs.18,580 crores earlier.
• Overall market breadth remained positive, where 868 stocks advanced against 598 declined stocks.
• Mixed trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK & CNX REALTY emerged as top gainers with the increase of 2.9% & 1.1% respectively. However, CNX IT emerged as top loser with the decrease of 0.7%.

CNX NIFTY OUTLOOK

• CNX NIFTY ended on quiet note post witnessing high volatility in prior sessions. As mentioned earlier, 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 as it traded with a negative bias for most part of the trading session.
• Nifty lost 11 points to close at 8224.
• OI concentration is seen at 8000 PE and 8500 CE.
• Addition witnessed in 8500CE and Reduction in 8100PE.
• PCR OI stands at 0.95 compared to 1.01 in the previous trading session.
• Nifty to trade with a support of 8090.

Stocks

• HDFC,ITC and Reliance kept the Nifty under pressure.
• From the four wheeler space, M&M had been trading with a resistance of 1210.The stock has gained in the previous trading session and has comfortably closed above the same. The volumes in the previous two trading sessions have also been on the higher side. 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 1260.
• Market wide open interest is seen at Rs.213,243Cr.
• Amongst sectoral index, CNX PSU Bank adds fresh long position.
• OBC observed build up in long position.

SBIN is turning from the lower band of the trading range after forming a support base at 260 zones. It looks attractive in terms of risk reward ratio as it has broken the falling supply trend line and gave the highest daily close of last 14 trading sessions with fresh long position at support zones. Thus showing the potential to move towards 286.5 and higher levels. One can buy the stock with stop loss of 270 for the upside target of 286.5 levels. 

Buy Between Rs. 274 to 277,Stop Loss 270,Target 286.5 

COALINDIA has been witnessing sustain selling pressure at every bounce back and also making lower highs from last two sessions. It has immediate hurdle near to 377 zones and till it doesn’t cross the same, weakness and selling pressure may continue at higher levels. Thus one can sell the stock with a stop loss of 385 levels for the downside target of 361 levels. 

Sell Between Rs. 375 to 379,Stop Loss 385,Target 361