Nifty Derivative Snapshot & Derivative Stock Recommendations

CNX NIFTY started the session on a strong note eyeing positive global cues and later managed to extend the gain during the day amidst buying across the board, where index registered a low of 8,381 level and high of 8,504 mark before ending the day at 8,492 level, with the rise of 151 points.

• NSE Cash segment witnessed a turnover of about Rs14,148 crores as compared to Rs18,026 crores earlier.
• Overall market breadth remained positive, where 1233 stocks advanced against 266 declined stocks.
• Positive trend was witnessed amongst all sectoral indices during the day, where CNX REALTY & CNX FINANCE emerged as top gainers with the increase of 2.2% & 2.1% respectively.
• Nifty added 150 points to close at 8492.
• OI concentration is seen at 8200 PE and 9000 CE.
• Addition witnessed in 8500strike.
• PCR OI stands at 1.01 compared to 0.92 in the previous trading session.
• Nifty to trade with a resistance of 8730.

CNX NIFTY OUTLOOK

• CNX NIFTY begun brand new week on a strong note, where index breached eight sessions old falling trend and closed on 3-day high level. As mentioned earlier, our near-term technical view will remain negative till the time index trades below its 100-days SMA (i.e. placed around 8,530 mark), however any stable move above the mentioned moving average will bring the exuberance of visiting higher level of 9,000 back in trade.
• As for the day, support is placed at 8,410 and then at 8,320 levels, while resistance observed at 8,530 and then at 8,600 levels.
• Put Call Ratio based on Open Interest of Nifty moved up from 0.83 to 0.86 levels. Historical Volatility of Nifty increased from 19.29 to 19.88 levels and Implied Volatility also moved up from 14.00 to 14.04 levels. 

Stocks

• Banking and IT stocks gained as Nifty closed positive.  In the Pharma space, Lupin has retraced from its previous lows of 1950.The stock trades with a positive bias in the monthly, weekly and daily charts. We expect the stock to gain in the next few trading sessions. The RSI also indicates a positive bias. One can accumulate the same at current levels for a near term target of 2060/2075. 
• Market wide open interest is seen at Rs.180,844cr.
• Amongst sectoral index, CNX Finance adds fresh long position.
• Idea Cellular and Motherson Sumi observed build up in long position.

CENTURYTEX has given strong price movement in last 2 trading session as it crossed its immediate hurdle of 606 levels. In the last series it has seen rollover of more than 90% which also indicates that longs are intact in the counter. The stock is trading near to 10 months high levels and follow up buying action may trigger for the next leg of rally in the counter. Thus, traders can buy the stock with stop loss of 622 for the upside target of 662 levels. 

Buy Between 632 to 639,Stop Loss 622,Target 662 

HINDALCO has failed to move even after the strong market recovery. In the mid of the month it has broken the multiple support of 138 levels and corrected towards 123 levels. The earlier support now is likely to act as a major hurdle for the counter. Thus one can sell the stock with a stop loss of 139 levels for the downside target of 130 levels. 

Sell Between 135 to 137,Stop Loss 139,Target 130