Nifty Derivative Snapshot & Derivative Stock Recommendations

CNX NIFTY gradually moved to 8,550 level post firm opening, but later due to sharp sell-off in late noon session surrendered entire gain and visited 8,454 mark. Later minor bounce back helped index to trim the loss to 1 point on end of the day.

• NSE Cash segment witnessed a turnover of about Rs17,527 crores as compared to Rs14,148 crores earlier.
• Overall market breadth remained positive, where 865 stocks advanced against 609 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX PHARMA & CNX ENERGY emerged as top gainers with the increase of 1.1% & 1% respectively, however BANK NIFTY & CNX PSU BANK emerged as top losers with the decrease of 0.8% each.
• Nifty lost 1 points to close at 8491.
• OI concentration is seen at 8300 PE and 9000 CE.
• Addition witnessed in 8800CE and 8300PE.
• PCR OI stands at 1.00 compared to 1.01 in the previous trading session.
• Nifty to trade with a resistance of 8730.

CNX NIFTY OUTLOOK

• CNX NIFTY reversed after visiting its 100-days SMA (placed around 8,530 mark) on back of selling pressure across banking and major front line counters. As mentioned earlier, our near term technical view will remain negative till the time index closes below 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 8,450 and then at 8,410 levels, while resistance observed at 8,550 and then at 8,600 levels.
• Put Call Ratio based on Open Interest of Nifty remained unchanged at 0.86 levels. Historical Volatility of Nifty decreased from 19.88 to 19.32 levels and Implied Volatility also fell down from 14.04 to 13.91 levels.

Stocks 

• Banking stocks were the main draggers of Nifty.
• In the Pharma space, Cipla has managed to trade in the positive bias. The stock has gained in the previous trading session with an increase in volumes. The RSI also indicates a positive bias. We expect the stock to gain in the next few trading sessions. One can accumulate the same at current levels for a near term target of 740 and higher.
• Market wide open interest is seen at Rs.183,043cr
• Amongst sectoral index, CNX Pharma adds fresh long position.
• Biocon and BPCL observed build up in long position.

MOTHERSUMI has seen strong price action in last three trading session from 470 to 520 levels with open interest addition of more than 15%. The stock was moving upwards till the end of session even after a late sell off in the broader market which clearly indicates inherent strength of the stock. Thus, Traders can buy the stock with stop loss of 501 for the upside target of 532 levels.

Buy Between Rs. 509 to 514,Stop Loss 501,Target 532

PNB has been witnessing sustained selling pressure from last four series and has been making lower lows on weekly basis as it has corrected sharply from 230 to 145 levels. It has broken the major support of 157 levels and now finding tough to move above 152 levels so weakness may drag the stock to lower levels. Thus one can sell the stock with a stop loss of 152 levels for the downside target of 143 levels.

Sell Between Rs. 148 to 150,Stop Loss 152,Target 143