Nifty Derivative Snapshot & Derivative Stocks Recommendations

NIFTY (8262) CNX Nifty opened positive and witnessed a lot of twist and turns throughout the day with positive bias. However, in the later part of the day it held around 8250 level firmly with support from IT, auto, pharma and FMCG stocks. The index closed in positive region, with a gain of 38 points. Now it has to cross and hold above 8280 zones to witness an up move towards 8340-8350 levels. On the downside, if it fails to sustain 8180 then its momentum may fizzle out and profit booking may drag the index towards 8120 and 8080 levels. Traders need to be cautious as the index is highly volatile ahead of the 4th quarterly result season.

CNX NIFTY begun the session on firm note, but later reversed sharply after visiting 8,279 mark and slipped to 8,212 level. Post such quick action, index oscillated in 8,270-8,230 range and finally, finished trade with gain of 38 points at 8,262 level.

• NSE Cash segment witnessed a turnover of about Rs15,498 crores as compared to Rs16,093 crores earlier.
• Overall market breadth remained positive, where 804 stocks advanced against 653 declined stocks.
• Mixed trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK & CNX FMCG emerged as top gainers with the increase of 0.8% each. However, CNX REALTY & CNX METAL emerged as top losers with the decrease of 1.2%-1.1%.

CNX NIFTY OUTLOOK

• In last week, CNX NIFTY lost twice out of five trading sessions, but ended week on a positive note with the rise of 0.9%. As mentioned earlier, we believe index will remain under pressure till the time it trades below its 2-week high (i.e. placed around 8,356 level), but any stable move above that level will support NIFTY to visit 8,600 mark in near-term. However, support around 8,000 mark will restrict the fall in case of any adverse action.
• As for the day, support is placed at 8,200 and then at 8,120 levels, while resistance observed at 8,320 and then at 8,400 levels.
• Nifty opened on a positive note and remained stable as it traded in a small range.
• Nifty added 38 points to close at 8262.
• OI concentration is seen at 8000 PE and 8500 CE.
• Addition witnessed in 8350CE and in 8100PE.
• PCR OI stands at 0.97 compared to 0.95 in the previous trading session.
• Nifty to trade with a support of 8090.

Stocks

• HDFC,ITC and Reliance kept the Nifty under pressure.
• From the two wheeler space, Bajaj-Auto had been trading sideways for the past four consecutive trading sessions. The stock has gained in the previous trading session and has comfortably with a positive bias. As the stock trades with a positive RSI. The stock has considerable space on the upside. One can trade the same for a near term target of 2250.
• Market wide open interest is seen at Rs.216,192Cr.
• Amongst sectoral index, CNX PSU Bank adds fresh long position.
• Mind Tree and Eicher Motors observed build up in long position

JSWSTEEL has been forming lower highs- lows from last five series and also witnessing built up of short position with sustained selling pressure at every small bounce back move. It is continuously trading in the bears grip and gave the lowest daily close in last 52 weeks. It was under the selling pressure even after the recovery in the broader market which also indicates its inherit weak structure. One can sell the stock with a stop loss of 911 levels for the downside immediate target of 859 levels. 

Sell Between Rs. 889 to 898,Stop Loss 911,Target 859