Nifty Derivative Snapshot & Derivatives Stock Recommendations

CNX NIFTY begun the session on a firm note, but later reversed from 8,788 mark and after consolidating in 8,720-8,750 range witnessed sharp wave of decline in last hour of trade and finally, shut the shop nearing day's low of 8,615 level.

• CNX NIFTY settled the session at 8,635 level, with the loss of 51 points.
• NSE Cash segment witnessed a turnover of about Rs18,595 crores as compared to Rs18,204 crores earlier.
• Overall market breadth remained negative, where 502 stocks advanced against 980 declined stocks.
• Except CNX PHARMA & CNX METAL (reported a rise of 0.5%-0.1%) negative trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK, BANK NIFTY & CNX REALTY emerged as top losers with the decrease of 2.4%, 1.8% & 1.6% respectively.
• Nifty lost 51 points to close at 8634.
• OI concentration is seen at 8400 PE and 9000 CE.
• Addition witnessed in 8700CE and Reduction in 8500PE.
• PCR OI stands at 0.88 compared to 0.92 in the previous trading session.
• Nifty to trade with a resistance of 8850.

CNX NIFTY OUTLOOK

Though CNX NIFTY crossed 8,750 mark, but later failed to sustain that level on a closing

basis. 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, hurdle around 8,800- 8,850 range will restrict the rise.

As for the day, support is placed at 8,590 and then at 8,510 levels, while resistance observed at 8,700 and then at 8,750 levels.

Put Call Ratio based on Open Interest of Nifty fell down from 0.89 to 0.87 levels compared to previous trading session. Historical Volatility of Nifty fell down from 18.35 to 18.17 levels and Implied Volatility also fell down from 17.76 to 16.10 levels. 

Stocks 

• Private banks, Reliance and ITC kept Nifty under pressure. 
• From the IT space, TCS has shown a reversal, the stock has witnessed higher volumes in the previous trading session. The RSI also indicates a positive trend. The stock has significant space on the upside. One can accumulate the same at current levels for a near term target of 2680/2700. 
• Market wide open interest is seen at Rs.250,279cr

JPASSOCIAT has recently made multiple tops near to 29.50 zones. It is witnessing fresh call writing at higher strike and falling from last five trading session. 

It has also broken its immediate support of 27 levels, thus bears may drag it to lower levels. Overall price pattern of this stock is negative and set to decline after recent bounce back move. 

One can sell the stock around 26.50 with a stop loss of 27.50 levels for the downside target of 24.50 levels. 

Sell Around Rs. 26.50 ,Stop Loss 27.50,Target 24.50 

JUBLFOOD has been forming lower highs pattern 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 1494 levels. 

One can sell the stock with a stop loss of 1582 levels with the downside target of 1494 levels.

Sell Between Rs. 1600 to 1597, Stop Loss 1605, Target 1540