Nifty Derivative Strategies & Derivative Stock Recommendations

CNX NIFTY spent entire session oscillating in 8,664-8,612 range despite a better than expected WPI numbers and finally, finished trade with the loss of 15 points at 8,633 mark.

• NSE Cash segment witnessed a turnover of about Rs16,726 crores as compared to Rs20,174 crores earlier.
• Overall market breadth remained negative, where 446 stocks advanced against 1071 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX REALTY &
• CNX MEDIA emerged as top gainers with the increase of 1.3% & 1.1% respectively. However,
• CNX METAL & CNX FMCG emerged as top losers with the decrease of 1.6%-1.2%
• Nifty finally closed with loss of 0.17 percent. Immediate range for the index is seen at 8525- 8750. Sustain above 8750 will change the trend to positive.
• OI concentration is seen at 8400-8500 put and 9000 call options. 
• Market wide open interest is seen at Rs. 2,41,558 cr

CNX Nifty Outlook

• CNX NIFTY begun week on a dull note eyeing key global announcement. As mentioned earlier, our near-term technical view remains negative with probable down move towards 8,480 mark (i.e. 100-days SMA), however any rebound from here will once again provide good opportunity to create short position at higher level (i.e. around 8,800-8,850). 
• As for the day, support is placed at 8,590 and then at 8,510 levels, while resistance observed at 8,720 and then at 8,800 levels. 

Stock

• Stock specific action was seen across the market. Banking outperformed as the banking index closed with gains 0.31 percent. Capital goods and Metals remained under pressure. FMCG witnessed some selling pressure while IT consolidated within a range.  
• We remain positive on the IT space and expect TCS and Wipro to gain from current levels. Accumulation is advised in the Banking space with bias towards private banks. Action in midcap is expected to continue. SKS micro and Motherson Sumi are expected to gain from current levels.

HAVELLS has given multiple breakouts on daily and weekly chart. It witnessed built up of short position in last two series and now holding above 290 may attract short covering movement towards 302 and higher levels.

It gave the highest daily close of last fourteen weeks and has formed an attractive price pattern. Traders can buy the stock with stop loss of 284 for the upside target of 302 levels. 

Buy Between 289 to 291, Stop Loss 284,Target 302 

JSWSTEEL has been forming lower highs- lows from last five trading sessions and also witnessed built up of short position with sustained selling pressure. It has given the lowest closing in last one year and holding below 940 may continue selling pressure towards 900 and lower levels. 

It was under the selling pressure even when index was trading at lifetime high territory and is continuously trading in the bears grip from last couple of series. One can sell the stock with a stop loss of 955 levels with the downside target of 900 levels. 

Sell Between 932 to 941, Stop Loss 955,Target 900