Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8339) CNX Nifty opened flat to positive but could not cross its immediate hurdle of 8380 zones and fell down towards 8320 levels, although it witnessed recovery from the lower levels in last 1 hour of the session and closed near to 8340 levels. It has negated its positive streak of making higher highs on Monday and continued to form lower low – lower high price formation for second consecutive session. The index finally closed near to crucial support zone with the loss of around 30 points. Now it has to cross and hold above 8350 levels to witness an up move towards 8380 then 8440 levels. On the downside, if it fails to sustain 8320 zone then the index may witness profit booking towards 8280 and 8250 levels. 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 traded in a small range throughout the day.
• Nifty lost 30 points to close at 8339.
• OI concentration is seen at 8300 PE and 8500 CE.
• Activity witnessed in 8400 strike.
• PCR OI stands at 1.06 compared to 1.10 in the previous trading session.
• Nifty to trade with a resistance of 8470.

Stocks 

• Oil&Gas stocks were the main draggers for Nifty.
• In the metals and mining space, Coal India has managed to trade with a positive bias. As the stock continued to trade in the green in the weekly and daily charts backed with a positive RSI and MACD it has opened up considerable space on the upside. One can enter the stock at current levels for a near term target of 384 and higher.
• Market wide open interest is seen at Rs.241,797Cr.
• Amongst sectoral index, CNX FMCG adds fresh short position.
• VBPCL and Eicher Motors observed build up in long position.

SUNTV is moving after a long consolidation of last 25 trading sessions and closed above its immediate hurdle of 370 zones. In the last series it fell down sharply by more than 25% from 460 to 344 levels and now recovering after a consolidation phase with short covering activities. We are expecting this short covering round to continue for next coming sessions as it looks attractive in terms of risk reward ratio. One can buy the stock with stop loss of 360 for the upside target of 384 levels. 

Buy SUNTV Between Rs. 366 to 370,Stop Loss 360,Target 384 

AMBUJACEM has recently failed to cross its multiple hurdles of 244-245 zones and corrected from 245 to 227 levels. It is falling from last two sessions with lower highs and lower lows price formation. It has witnessed aggressive built up of short position as open interest jumped by around 15% in last couple of sessions. It has snapped bounce back move of last two weeks and now fresh short may drag it to lower levels. One can sell the stock on small bounce back move with stop loss of 237 for the downside target of 224 levels. 

Sell Ambuja Cement Between Rs. 231 to 234,Stop Loss 237,Target 224