Nifty Derivative Snapshot & Derivative Stocks Recommendations

NIFTY (8057) CNX NIFTY opened flat with negative bias and broke its 8000 level for the first time in 2015 and fell towards intraday low of 7997 levels. Nifty fell down by 125 points from the day’s high levels and finally settled the day with the loss of 40 points. The index is facing sustained selling pressure from last 4 weeks. Now till it doesn’t cross and hold above 8145 zones, weakness may continue to drag it towards next major support of psychological 8000 and lower levels. On upside crucial hurdles seen at 8145 followed by 8200 and 8240 zones. Traders need to be cautious as bears are controlling the index and over powering the bulls.

Sell of continued at domestic bourses with benchmark index NSE NIFTY, ending the trade on a negative note yet again. Although we did witness sharp bounce from an intraday low of 7,997 towards the fag end of the session as NIFTY ended with the loss of about 40 points at 8,057 mark.

• NSE Cash segment witnessed a turnover of about Rs17,676 crores as compared to Rs20,654 crores observed earlier.
• Overall market breadth remained negative, with 291 stocks advancing against 1,199 stocks declining.
• Sectorally, barring CNX IT and FMCG that ended the session with gains of 1.7% and 0.3%, almost all the sectoral indices ended the session with sharp losses. CNX PSU Bank, Bank NIFTY and CNX Realty emerged as top loser down 2.5% and 2.4% each respectively.

CNX NIFTY OUTLOOK

• NSE's NIFTY, breached 8,000 mark in trade yesterday as selling across the board took toll on the sentiments. Thanks to sharp move in FMCG and IT majors during the fag end of the trade, that actually helped NIFTY to close above 8,050 mark by end of the trade. As mentioned earlier, the next major support level for the index is seen only around the level of 7,965 below which, we may see further decline towards level of 7,800. On upside, 8,200-8,300 continues to remain strong hurdle.
• As for the day, support is placed at 8,000 and then at 7,965 levels, while resistance observed at 8,080 and then at 8,120 levels.
• Nifty extended its negative trend as it breached 8000 levels.
• Nifty lost 39 points to close at 8057.
• OI concentration is seen at 8000 PE and 8500 CE.
• Addition witnessed in 8100CE and Reduction in 8300PE .
• PCR OI stands at 0.95 compared to 0.93 in the previous trading session.
• Nifty to trade with a resistance of 8250.

Stocks

• Banking stocks and ONGC kept Nifty under pressure.
• IT stocks have managed to buck the negative trend. Wipro has formed a strong base at 525 levels and has gained in the previous trading session. The RSI and MACD also have shown a positive trend. We expect the stock to gain in the next few trading sessions. On the upside the stock has space upto 560 levels.
• Market wide open interest is seen at Rs.186,219Cr.
•  Amongst sectoral index, CNX Realty adds fresh short position.
• REC and PFC observed build up in short position

TECHM has corrected by 23% from 738 to 565 levels and now taken support at recent low levels. It has negated the negative trend and engulfed the weakness of previous session. It looks attractive in terms of risk reward ratio as it managed to hold its position even after fall in the broader market. So traders can buy the stock with stop loss of 594 for the upside target of 630 levels.

Buy Between Rs. 603 to 609,Stop Loss 594,Target 630 

BANKINDIA has been witnessing sustained selling pressure from last four series and has been making lower highs as it has corrected sharply from 311 to 209 levels. It has broken the weekly support of 200 levels, so fresh weakness and built up of short position may drag the stock to lower levels. Thus one can sell the stock with a stop loss of 209 levels for the downside target of 197 levels.

Sell Between Rs. 204 to 206,Target 209,Stop Loss 197