Nifty Derivative Snapshot & Derivative Recommendations

CNX NIFTY begun the session on a strong note eyeing positive global cues, but later reversed from 8,738 mark and surrendered entire gain. Post witnessing a fall of 108 points, index revisited day's peak level amidst last hour surprise rally and finally, finished trade with the gain of 90 points at 8,723 mark.

• NSE Cash segment witnessed a turnover of about Rs19,139 crores as compared to Rs16,726 crores earlier.
• Overall market breadth remained positive, where 789 stocks advanced against 710 declined stocks.
• Except CNX IT(lost 0.3%), positive trend was witnessed amongst all sectoral indices during the day, where CNX PHARMA & CNX FINANCE emerged as top gainers with the increase of 1.9% & 1.5% respectively.
• It finally closed with gains of 1 percent. Immediate resistance for the index is seen at 8750. Sustain above 8750 will change the trend to positive.
• OI concentration is seen at 8400-8500 put and 9000 call options.
• Market wide open interest is seen at Rs. 2,42,564 cr

CNX NIFTY managed to regain 8,700 mark despite a high volatility and breached two sessions old falling trend. As mentioned earlier, our near-term technical view remains negative with probable down move towards 8,500 mark (i.e. 100-days SMA), however one can utilize such kind of rebound for creating short position at higher level. We believe index will remain in pressure till the time it trades below 8,900 mark.

As for the day, support is placed at 8,660 and then at 8,590 levels, while resistance observed at 8,800 and then at 8,850 levels.

Put Call Ratio based on Open Interest of Nifty remained unchanged at 0.91 levels. Historical Volatility of Nifty fell down from 18.87 to 18.82 levels and Implied Volatility also fell down from 16.61 to 16.41 levels. 

Stocks

• Significant volatility was seen across stocks. Banking witnessed significant volatility throughout the trading session. Metal gained throughout the session. 
• Capital goods traded positive led by BHEL. Pharma stocks gained led by DrReddy and AuroPharma. FMCG and IT witnessed consolidation.  
• We remain positive on the Banking and Capital goods space. High beta stocks are expected to perform in the near term after significant price corrections in the recent past. 
• For the Medium term we remain positive on IT and advice accumulating the same.

Future Short Term Call

YESBANK is in bull trend from last one year and usually starts its next move after a small price or time correction. Recently it corrected by more than 12% from 908 to 800 levels but overall trend is intact to positive which may again drive the upswing in the stock. 

Thus looks attractive in terms of risk reward ratio. Traders can buy the stock on small decline near to support zone with stop loss of 813 for the upside immediate target of 861 levels. 

Buy Between 825 to 833,Stop Loss 813,Target 861 

JUBLFOOD has been forming lower highs from last three weeks and has been finding selling pressure at every bounce back. It failed to recover with the broader market and has been witnessing built up of short position thus indicating that pressure may continue in the stock towards 1533 levels.

Traders can sell the stock with a stop loss of 1630 levels for the downside target of 1533 levels. 

Sell Between 1590 to 1605, Stop Loss 1630, Target 1533