Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8366) CNX Nifty although opened on a negative note but managed to reclaim its 8400 levels for the first time since April 24 2015. However minor profit booking at higher levels washed out the early morning gains in the mid-noon deals and the index slipped back into the negative territory in second half of the trading session and settled the day with the marginal loss of 8 points. The index has snapped the losses it made recently by 50% Fibonacci retracement level in last two weeks and now it has to continue to hold above 8340-8350 zones to witness the up move towards 8450 and 8480 levels. On the downside, if it fails to sustain 8340 zone then the index may again get stuck in the wider trading range of 8180-8340 levels. 

Nifty

• Nifty opened on a positive note but failed to maintain its highs as it gave up all its gains in the second half to close marginally negative.
• Nifty lost 8 points to close at 8365.
• OI concentration is seen at 8000 PE and 8500 CE.
• Addition witnessed in 8300PE and in 8400CE.
• PCR OI stands at 1.06 compared to 1.12 in the previous trading session.
• Nifty to trade with a resistance of 8470.

Stocks

• TATAMotors, ONGC and Hindunilvr kept the pressure on Nifty.
• IT stocks have been favorable in the past few trading sessions. Infy has been our preferred pick. The stock has continued to scale higher from the past three trading sessions. The volumes in the previous trading sessions has been on the higher side. THE MACD and RSI indicate a positive momentum.
• One can enter the same at current price for a near term target of 2100.
• Market wide open interest is seen at Rs.222,001Cr

RELINFRA is showing early sign of recovery as it gave a breakout from its falling supply trend line with rise in trading volumes. It looks attractive in terms of risk reward ratio as it is turning from the lower band of the trading range with built up long position. Thus showing the potential to move towards 466 and higher levels. Traders can buy the stock with stop loss of 438 for the upside target of 466 levels. 

Buy Between Rs. 445 to 450,Stop Loss 438,Target 466 

ALBK recently corrected from 272-64 levels and it witnesses selling pressure at every bounce back. It failed to recover itself even when the index was trading at lifetime high territory and is continuously trading in the bears grip. It failed to show any sign of recovery and drifting down with liquidation of long position. Traders can sell the stock with stop loss of 108 for the downside target of 100.5 levels. 

Sell Between Rs. 105 to 106,Stop Loss 108,Target 100.5