Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8332) CNX Nifty opened on a positive note with gap up of around 50 points and witnessed sharp bounce back move of more than 1.5% as investors snapped up beaten down blue-chips after India's Lower House of Parliament approved the 2015/16 Finance Bill on Thursday. The index has witnessed a move from its immediate support of 8145 levels and now again trading above its 200 DMA. It finally ended the day with gains of around 150 points. Now, index needs to hold above 8300 zones to continue its move towards 8380 and 8420 levels. While, if it fails to hold its 8280 levels then momentum may again fizzle out and index may go down towards 8220 then

8180 levels.

Benchmark index NSE NIFTY, ended first day of the new expiry on a strong note as it gained close to 1.8% or 150 points at 8,332 mark.

• NSE Cash segment witnessed a turnover of about Rs16,362 crores as compared to Rs25,559 crores earlier.
• Overall market breadth remained negative, with 1,196 stocks advancing against 317 stocks declining.
• Sectorally, it remained an extremely positive day of trade with CNX Energy emerging as top gainer up 3.5% followed by host of other indices like CNX Media, PSU Bank, Realty and FMCG gaining between 2% to 2.7% each respectively.

CNX NIFTY OUTLOOK

• Finally, after lot of efforts, NIFTY was able to move past 8,300 mark with ease in yesterday's effort. Despite sharp up move, net buying from the institutional investors remained on a lower end with FIIs buying stock worth just Rs61 crores while the DIIs remained net buyer to the tune of just Rs147 crore. The next major post yesterday's strong up move to watch out will now be placed at 8,500 mark provided, NIFTY is able to sustain yesterday's gain and manage to close above 8,300 mark.
• As for the day, support is placed at 8,280 and then at 8,220 levels, while resistance observed at 8,350 and then at 8,380 levels.
• Nifty opened gap-up and continued to gain throughout the trading session.
• Nifty added 150 points to close at 8331.
• OI concentration is seen at 8100 PE and 8600 CE.
• Addition witnessed in 8600CE and 8000PE.
• PCR OI stands at 1.05 compared to 0.97 in the previous trading session.
• Nifty to trade with a resistance of 8360.

Stocks

• Most front line stocks gained as Nifty closed above 8300 levels.
• In the FMCG space, ITCis expected to complete its corrective phase and resume its implusive upmove. The stock has formed a base at 322 levels which would act as immediate support level. The RSI also has shown a reversal. One can accumulate the same at current levels for a near term target of 360.
• Market wide open interest is seen at Rs.182,413Cr.
• Amongst sectoral index, CNX Energy adds fresh long position 
• OBC observed build up in long position while Exide Ind and SKS Microfinance observed build up in short position.

BHEL has taken multiple support near to 222-225 zones and now making a bottom out formation after the weakness of last three series. It has crossed and closed above immediate hurdle of 243 zones and may witness short cover activity towards 250and higher levels. One can buy the stock with stop loss of 235 levels for the upside target of 251 levels. 

Buy Between Rs. 239 to 242,Stop Loss 235,Target 251 

EXIDEIND has broken its major support of 174 zones and falling down sharply from last two trading sessions with fresh built up of short position. It is falling with rising volumes activity which suggests that shorts have taken grip on the counter on immediate basis. Traders can sell the stock with stop loss of 170 levels for the downside target of 158 levels.

Sell Between Rs. 165 to 167,Stop Loss 170,Target 158