Nifty Derivative Snapshot & Derivative Stock Recommendations

Selling pressure continued in market for straight eighth trading session in a row, where CNX NIFTY failed to sustain 8,400 mark post an initial effort, but after witnessing fall of 144 points (from the day's high level of 8,413), index tried to head above the water with corresponding bounce back and managed to trim the loss to 1 point on closing.

• NSE Cash segment witnessed a turnover of about Rs18,026 crores as compared to Rs23,729 crores earlier.
• Overall market breadth remained negative, where 582 stocks advanced against 920 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX PSU BANK & BANK NIFTY emerged as top gainers with the increase of 1.5% & 1.2% respectively, however CNX ENERGY & CNX FMCG emerged as top losers with the decrease of 1%- 0.9%.
• Nifty ended flat at 8341.
• OI concentration is seen at 8200 PE and 9000 CE.
• Addition witnessed in 8500CE and 8000PE.
• PCR OI stands at 0.92 compared to 0.98 in the previous trading session.
• Nifty to trade with a resistance of 8730.

CNX NIFTY OUTLOOK

• In last eight sessions, CNX NIFTY lost 382 points or 4.4% amidst higher level profit booking and Geopolitical pressure. Despite an uninterrupted fall, our near-term technical view remains negative with probable down move towards 8,170 mark, as we believe index will remain in pressure till the time trades below its 100-days SMA (i.e. placed around 8,530 mark). Any firm move above the mentioned average will bring the exuberance of visiting higher level of 9,000 back in trade.
• As for the day, support is placed at 8,270 and then at 8,240 levels, while resistance observed at 8,410 and then at 8,470 levels.
• Put Call Ratio based on Open Interest of Nifty fell down from 0.86 to 0.83 levels. Historical Volatility of Nifty increased from 19.16 to 19.29 levels but Implied Volatility fell down from 14.71 to 14.00 levels.

Stocks

• Banking and IT stocks gained as Nifty closed positive.
• In the Capital goods space, LT has shown a strong reversal from its lows of 1620.The stock has witnessed strong buying interest indicated by an increase in volumes in the previous two trading sessions. The RSI also indicates a positive bias. One can accumulate the same at current levels for a near term target of 1760.
• Market wide open interest is seen at Rs.174,134cr.
• Amongst sectoral index, CNX PSU Bank adds fresh long position.
• SKS Micro and JSW Steel observed build up in long position.

YESBANK has been recently added in the Nifty Fifty and because of that some buying action may continue in the counter. Although we are observing some sideways and consolidation price movement in the last couple of trading sessions in line with the selling pressure in the overall market. But the way it is taking sustained buying interest and multiple supports near Rs 780-790 zone, we are expecting it to find support and slowly move towards Rs 850-860 in next coming trading sessions. Traders can buy the stock with stop loss of 800 for the upside target of 848 levels.

Buy Between Rs. 812 to 820,Stop Loss 800,Target 848

COALINDIA (333) has given a small bounce back but failed to hold the momentum and witnessed the sustained selling pressure near to 372 zones. It is down by around 5-6 percent in the last two trading sessions with build-up of short positions. We are also witnessing some Call writing at the higher strike and the stock has lost its momentum, so it may go down to lower levels. Thus one can sell the stock with a stop loss of 367 levels for the downside target of 346 levels. 

Sell Between 358 to 362,Stop Loss 367,Target 346