Nifty Derivative Snapshot & Derivative Stock Recommendations

CNX NIFTY begun the session on a firm note, but later reversed before visiting 8,700 mark and despite witnessing decent rebound, slipped to 8,587 level. Later index revisited day's high in late trades post forming a strong base around day's low and finally, closed the session on flat note.

• NSE Cash segment witnessed a turnover of about Rs18,092 crores as compared to Rs17,040 crores earlier.
• Overall market breadth remained positive, where 917 stocks advanced against 602 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX METAL emerged as top gainer with the increase of 2.2% and CNX REALTY emerged as top loser with the decrease of 1.7%.
• Nifty closed at 8660.
• OI concentration is seen at 8400 PE and 9000 CE.
• Addition witnessed in 8900CE and 8500PE.
• PCR OI stands at 1.19 compared to 1.14 in the previous trading session.
• Nifty to trade with a resistance of 8730.

CNX NIFTY OUTLOOK

• Though CNX NIFTY witnessed pullback post two days of consecutive rise, index managed to recoup entire loss before ending the session amidst buying in metal counters. We believe undergoing momentum will curb such kind of fall and help index to climb higher levels. As mentioned earlier, our near-term technical view remains positive with probable up move towards 8,800-9,000 mark, however, recent reversal point (i.e. placed around 8,270 mark) will work as a strong support level in case of any adverse action.
• As for the day, support is placed at 8,600 and then at 8,540 levels, while resistance observed at 8,700 and then at 8,790 levels.
• Put Call Ratio based on Open Interest of Nifty moved up sharply from 0.98 to 1.01 levels. Historical Volatility of Nifty fell down from 19.13 to 18.59 levels and Implied Volatility also fell down from 14.43 to 13.88 levels

Stocks

• Metal stocks, TCS and Reliance gained as Nifty recovered from day's lows.
• In the IT space, TCS which had been trading sideways has managed to break the pattern and has gained in the previous trading session. The stock now trades with a positive bias as it has opened up significant space on the upside. The RSI also indicates a positive bias. We expect the stock to ascend in the next few trading sessions. One can accumulate ATM call options and hold in the same.
• Market wide open interest is seen at Rs.199,000.
• Amongst sectoral index, CNX Metal adds fresh long position.
• COLPAL observed build up in long position.

TATASTEEL is moving after taking multiple supports and looks attractive in terms of risk reward ratio. It has negated its negative trend and witnessing built up of long position. It is moving after consolidation of last seven trading sessions and showing the potential to move towards 344 and higher levels. Traders can buy the stock with stop loss of 324 for the upside target of 344 levels. 

Buy Between Rs. 329 to 332,Stop Loss 324,Target 344

ACC has corrected by more than 13% from 1774 to 1538 levels in last three weeks but now taking support near to the 1550 levels and making an early sign of price reversal. In the last series it witnessed built of short position and forming higher top and higher bottom price pattern. It is also witnessing rising volume activity which may support it to move up towards 1704 levels. Traders can buy the stock with stop loss of 1605 for the upside target of 1704 levels.

Buy Between Rs. 1630 to 1646,Stop Loss 1605,Target 1704