Nifty Derivative Snapshot & Derivative Recommendations

CNX NIFTY tried to head above the water in first half, but later index failed to sustain above the neutral line and after witnessing a fall of 83 points from the day's high of 8,747 mark, finally finished trade with the loss of 36 points at 8,686 level.

• NSE Cash segment witnessed a turnover of about Rs18,204 crores as compared to Rs19,139 crores earlier.
• Overall market breadth remained negative, where 660 stocks advanced against 838 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX MEDIA & CNX PSU BANK emerged as top gainers with the increase of 1.5% & 1.1% respectively. However, CNX IT emerged as top loser with the decrease of 0.9%.
• OI concentration is seen at 8500 put and 9000 call options.
• Market wide open interest is seen at Rs. 2,49,144 cr

CNX NIFTY failed to cross 8,750 mark from last two trading sessions. We believe index will remain in pressure till the time it crosses that mark. 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 every rebound for creating short position at higher level. In case of major bounce back, index will face hurdle at 8,900 level.

As for the day, support is placed at 8,660 and then at 8,590 levels, while resistance observed at 8,750 and then at 8,800 levels.

Put Call Ratio based on Open Interest of Nifty fell down from 0.91 to 0.89 levels compared to previous trading session. 

Historical Volatility of Nifty fell down from 18.82 to 18.35 levels but Implied Volatility moved up from 16.41 to 17.76 levels. 

Stocks 

Mixed activity was seen across sectors and stocks. Volatility remained high as uncertainty looms on the international front. 

Financial stocks outperformed led by HDFC Bank and IDFC. Metal stocks consolidated in a narrow range. Oil and Gas stocks traded with significant gains throughout the trading session. 

We remain positive on the Banking space led by ICICI and SBIN. Accumulation in IT is advised for the medium term. Expect continued momentum in the Oil and Gas space.