Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8325) CNX Nifty opened positive but was hovering in the range of last trading session. The bears controlled the index for major part of the day as it failed to sustain the morning gains and plunged down towards day’s low of 8280 levels. Finally after the intraday swings the index settled the day with the marginal loss of 12 points. Now, index needs to hold above 8300 zones to continue its move towards 8380 levels. While, if it fails to hold its 8280 levels then momentum may again fizzle out and index may go down towards 8250 then 8220 levels. Traders are required to trade cautiously as recent trend is in pressure but we are expecting a bounce back move from oversold

price territory.

Benchmark index NSE NIFTY, ended yesterday's trade on a negative but muted note. NIFTY, after registering a high of 8,356 slipped to an intraday low of 8,281 before recovering and finally ending the session with a loss of 11 points at 8,321 mark.

• NSE Cash segment witnessed a turnover of about Rs17,205 crores as compared to Rs16,362 crores earlier.
• Overall market breadth remained negative, with 468 stocks advancing against 529 stocks declining.
• Sectorally, it remained mixed day of trade with CNX Metal emerging as top gainer up 2.7% while on other hand, CNX Media emerged as top loser down 1.4%.

CNX NIFTY OUTLOOK

• Indices consolidated in a narrow range yesterday, as selling pressure above 8,350 while the value buying below 8,300 mark kept the index restricted in narrow range. Positive take from yesterday's action was ability of NIFTY to manage close above 8,300 mark that remains very crucial going ahead. As mentioned earlier, the next major resistance 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 on a flat note and traded in range for most part of the trading session.
• Nifty lost 7 points to close at 8324.
• OI concentration is seen at 8100 PE and 8600 CE.
• Addition witnessed in 8500CE and 7700PE .
• PCR OI stands at 1.02 compared to 1.05 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 IT space, TCS had been trading with a major resistance of 2510 levels. The stock has given a strong closing and closed above the same. The previous trading session also saw additions in volumes. This indicates a positive bias in the short term. One can buy ATM call options and hold in the same.
• Market wide open interest is seen at Rs.186,219Cr
• Amongst sectoral index, CNX Metal adds fresh long position.
• Hind Zinc and Kotak Mahindra Bank observed build up in long position.

HINDUNILVR has corrected by more than 11% from 932 to 831 levels in last three weeks but it is now taking support near to the 840-845 levels and making an early sign of price reversal. It negated its trend of making lower highs lower lows and now it is forming higher highs higher lows from last two trading sessions. It is also witnessing rising volume activity which may support it to move up towards 905 levels. Traders can buy the stock with stop loss of 854 for the upside target of 905 levels. 

Buy Between Rs. 867 to 875,Stop Loss854,Target 905 

COALINDIA has been falling down from last three weeks and witnessing sustained selling pressure at higher levels. It has immediate support near to 365 levels and below that fresh shorts may take the stock to 358 and further lower levels. Thus one can sell the stock with a stop loss of 379 levels for the downside target of 358 levels. 

Sell Between Rs. 370 to 374,Stop Loss 379,Target 358