Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8374) CNX Nifty opened positive and extended its previous session's up move towards intraday high of 8384 levels. The index has been forming higher lows price formation from last three trading sessions and gave strong break out on the daily chart as it managed to cross and close above its hurdle of 8350 levels. Thus the index gave the highest daily close of last 15 trading sessions with the gain of 111 points. Now it has to hold above 8350 zones to continue the up move towards 8450 and 8480 levels. On the downside, if it fails to sustain 8280 then its momentum may fizzle out and profit booking may drag the index towards 8220 and 8180 levels.

CNX NIFTY witnessed decent rise post firm opening, but after a minor decline, consolidated in narrow range. Later, index managed to take-off in late noon session amidst buying across the board and finally, finished trade at 8,374 level, with the rise of 111 points.

• NSE Cash segment witnessed a turnover of about Rs15,232 crores as compared to Rs15,498 crores earlier.
• Overall market breadth remained positive, where 978 stocks advanced against 479 declined stocks.
• Positive trend was witnessed amongst all sectoral indices during the day, where CNX MEDIA, CNX ENERGY, CNX PHARMA, CNX FINANCE & CNX FMCG emerged as top gainers with the increase of 3% - 1.5%.

CNX NIFTY OUTLOOK

• CNX NIFTY begun week on a strong note, where index managed to close on three-week high post surpassing prior peak (i.e. 8,356 mark) quite brilliantly. With recent rebound, our near-term technical view turned positive with probable up move towards 8,600-8,650 range, however support around 8,100-8,000 range will limit the decline in case of any adverse action.
• As for the day, support is placed at 8,290 and then at 8,220 levels, while resistance observed at 8,440 and then at 8,500 levels.
• Nifty opened on a positive note and remained stable as it traded in a small range.
• Nifty added 111 points to close at 8373.
• OI concentration is seen at 8100 PE and 8500 CE.
• Addition witnessed in 8200PE and Reduction in 8300CE.
• PCR OI stands at 1.12 compared to 0.97 in the previous trading session.
• Nifty to trade with a resistance of 8470.

Stocks 

• Banknifty,Infy and Reliance scaled higher as the Nifty broke 8350 levels.
• From the Banking space, Axis bank has been on an uptrend. The stock had a major resistance at 562. The stock has managed to close above the same. We expect the stock to gain in the next few trading sessions. The MACD and RSI also support the uptrend. One can trade the same for a near term target of 582.
• Market wide open interest is seen at Rs.220,033Cr.
• Amongst sectoral index, CNX Media adds fresh long position.
• Zee Ent and BPCL observed build up in long position.

AMBUJACEM gave a price break out from its immediate consolidation phase as it crossed and closed above its hurdle of 239 levels. It is turning from the lower band of the trading range and showing an early sign of trend reversal. It has been witnessing built up of long position as the open interest was added by around 4% in previous two trading sessions with increase in price. Thus, traders can buy the stock with stop loss of 233 for the upside target of 248 levels. 

Buy Between Rs. 237 to 239,Stop loss 233,Target 248 

CANBK has been finding sustain selling pressure near to 400 zones from last two series. Recently it made a high of 372 but could not witness follow up action and fell down below 360 levels. We are observing built of short along with liquidation of long positions which may take stock to 347 levels. Traders can sell the stock with stop loss of 369 for the downside target of 348 levels. 

Sell Between Rs. 360 to 364,Stop Loss 369,Target 348