Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8370) CNX Nifty opened in red and extended it losses in afternoon trade, losing more than 1% on account of selling across the board especially in Heavy weights. It negated its positive streak of making higher highs and breached its 35 DMA on the downside, moving towards its 200 DMA. The index finally closed in red with the loss of around 90 points. Now it has to cross and hold above 8380 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 witness profit booking towards 8320-8280 zones. Traders are required to maintain cautious approach ahead of the Derivatives expiry week and GDP data scheduled this Friday.

CNX NIFTY slipped to 8,415 level post 21 points of gap down opening and later tried to halt further decline by oscillating in 8,440-8,420 range, but that consolidation failed to save index from extending loss and finally, shut the shop nearing day's low of 8,364 mark.

• CNX NIFTY closed the session with loss of 89 points at 8,370 level.
• NSE Cash segment witnessed a turnover of about Rs11,976 crores as compared to Rs15,812 crores earlier.
• Overall market breadth remained negative, where 563 stocks advanced against 904 declined stocks.
• Except CNX MEDIA (rose by 0.1%) negative trend was witnessed amongst all sectoral indices during the day, where CNX FMCG & CNX METAL emerged top losers with the decrease of 2% & 1.7% respectively.

CNX NIFTY OUTLOOK

• Though, our near-term technical view is positive, we believe CNX NIFTY will either move sideways or face selling pressure till the time it trades below 8,500 mark, as index had formed "Evening Star Pattern" on daily chart and closed on 4-day low. However, any close below 8,320 level (200-day SMA) will be negative for index and find next support around 8,100-8,000 range.
• As for the day, support is placed at 8,330 and then at 8,250 levels, while resistance observed at 8,430 and then at 8,500 levels
• Nifty opened negative and continued to slide lower as it broke 8400 levels.
• Nifty lost 88 points to close at 8370.
• OI concentration is seen at 8300 PE and 8500 CE.
• Addition witnessed in 8500CE and Reduction in 8400PE.
• PCR OI stands at 1.10 compared to 1.26 in the previous trading session.
• Nifty to trade with a resistance of 8470.

Stocks

• ITC, Reliance and LT lost ground as Nifty slipped lower.
• In the banking space, Yes bank has made a top at 878 levels and this has become a immediate resistance. The stock has shown some reversal and has traded lower due to selling pressure. The stock now trades with a negative bias. The stock has considerable space on the downside. On the lower side the stock can slip to levels of 830.
• Market wide open interest is seen at Rs.235,669Cr.
• Amongst sectoral index, CNX FMCG adds fresh short position
• VBPCL and Eicher Motors observed build up in long position.

ONGC is moving after correction from 471 to 298 levels and forming a support base at 298 levels and showing the early sign of trend reversal. It looks attractive in terms of risk reward ratio as it is moving after sharp correction and a long consolidation phase. If it sustains current levels then may see an up move towards 336 and higher levels led by short covering activity. Traders can buy the stock with stop loss of 316 for the upside target of 336 levels. 

Buy ONGC Between Rs. 321 to 324,Stop Loss 316,Target 336 

JSWSTEEL has been forming lower highs- lows from last five series and also witnessing built up of short position with sustained selling pressure at every small bounce back move. 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 935 levels for the downside immediate target of 880 levels. 

Sell JSW Steel Between Rs. 912 to 921,Stop Loss 935, Target 880