Nifty Derivative Snapshot & Derivative Stock Recommendations

CNX NIFTY begun the session on stable note, but later with gradual decline reached to 8,517 level during the day from 8,574 mark and finally, shut the shop at 8,531 level, with the loss of 12 points.

• NSE Cash segment witnessed a turnover of about Rs16,401 crores as compared to Rs15,796 crores earlier.
• Overall market breadth remained negative, where 501 stocks advanced against 988 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where none of the sectoral indices have registered a rise of more than 0.5%, however, on the other hand, CNX PSU BANK & CNX MEDIA emerged as top losers with the decrease of 1.7% & 1.1% respectively.
• Nifty lost 12 points to close at 8530.
• OI concentration is seen at 8500 PE and 8600 CE.
• Activity witnessed in 8600 strike.
• PCR OI stands at 0.83 compared to 0.92 in the previous trading session.
• Nifty to trade with a resistance of 8730

CNX NIFTY OUTLOOK

CNX NIFTY settled the session nearing its 100-days SMA amidst sixth consecutive down tick. As mentioned earlier, our near-term technical view remains negative with probable down move towards 8,400 mark, however high volatile action cannot be ruled out due to F&O expiry. In case of major rebound, hurdle from 20-days EMA (i.e. placed around 8,680 mark) will restrict the rise.

As for the day, support is placed at 8,470 and then at 8,400 levels, while resistance observed at 8,560 and then at 8,630 levels. Put Call Ratio based on Open Interest of Nifty fell down from 0.89 to 0.85 levels. Historical Volatility of Nifty fell down from 16.78 to 16.40 levels and Implied Volatility also fell down from 13.55 to 13.06 levels.

Stocks 

• LT,ONGC, and TCS declined as Nifty failed to recover.
• In the metals and mining space, SesaGoa has recovered from its recent lows of185 levels. The stock has given a strong closing in the previous two trading sessions. The stock now trades with a positive bias in both the weekly and daily charts. The stock has made a 'U' shaped recovery. It has significant space on the upside. The RSI also indicates a positive trend. One can trade the same for a short term target of 210 and higher.
• Market wide open interest is seen at Rs.259,011cr.
• Amongst sectoral index, CNX PSU Bank adds fresh short position.
• Apollo Hospital observed build up in long position.

VOLTAS has been making higher highs - higher lows price formation. It has added fresh open interest by more than 45% in this series which indicates that longs are adding their positions for the next leg of rally. It has crossed the immediate hurdle of 283 zones. Thus traders can buy the stock with stop loss of 274 for the upside target of 290 levels. 

Buy Between Rs. 278 to 281,Stop Loss 274,Target 290

PNB has been witnessing sustained selling pressure from last three series and has been making lower lows on weekly basis as it has corrected sharply from 230 to 155 levels. It has broken the major support of 157 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 163 levels for the downside target of 151 levels. 

Sell Between Rs. 158 to 160,Stop Loss 163,Target 151