Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8434) CNX Nifty opened flat to positive and negated its formation of lower lows of last four trading sessions then headed towards 8444 levels. Index has again reclaimed it 50DMA and now holding above 8420 may give comfort to bulls to start the next leg of rally in next coming sessions. Now it has to hold above 8420 zones to  witness an up move towards recent high of 8490 then 8550 levels. On the downside, if it fails to sustain 8380 zone then may witness profit booking towards 8340 and 8320 levels. Market has made its immediate base near to 8000 zones in the month of May 2015 but now need a follow up action to start the fresh run up for the higher levels. Traders are suggested to take cautious view with stock specific approach ahead of PMI data and RBI policy.

CNX NIFTY moved to 8,306 level post stable opening and later jumped above 8,400 mark till noon session amidst buying across the board, except Realty counters. After such a sharp rise, index utilized narrow range consolidation to climb higher and finally, closed the session with gain of 115 points at 8,434 level.

• NSE Cash segment witnessed turnover of about Rs43,621 crores as compared to Rs22,432 crores earlier.
• Overall market breadth remained positive, where 858 stocks advanced against 613 declined stocks.
• Except CNX REALTY (declined by 0.5%) positive trend was witnessed all amongst sectoral indices during the day, where CNX AUTO, CNX PHARMA & BANK NIFTY emerged as top gainers with the increase of 1.9%, 1.6% & 1.5% respectively.

CNX NIFTY OUTLOOK

• As mentioned earlier, our near-term technical view will remain positive, as index managed to rebound from 8,270 mark and closed on one-week high. On monthly basis, index reported a rise of 3.1%, where it breached two month old falling trend. Though we believe positive momentum will continue from here, major up move/down move will be seen in index only above/below 8,500/8,270 levels respectively.
• As for the day, support is placed at 8,340 and then at 8,270 levels, while resistance observed at 8,500 and then at 8,570 levels.
• Nifty opened flat but gained significantly in the later part of the trading session.
• Nifty added 114 point to close at 8433.
• OI concentration is seen at 8000 PE and 8800 CE.
• Addition witnessed in 8700CE and in 8300PE.
• PCR OI stands at 1.15 compared to 1.11 in the previous trading session.
• Nifty to trade with a resistance of 8470

Stocks 

• Banking stocks let Nifty to close above 8400 levels.
• In the FMCG space, ITC which had hit lows of 312 levels has bounced back. The stock was trading with a resistance of 325. It has managed to close above it. This has opened up significant space on the upside. One can look at entering the stock at current levels for an upside of 336/340 levels.
• Market wide open interest is seen at Rs.174,872Cr.
• Amongst sectoral index, CNX IT adds fresh long position.
• Bharti Airtel and Lupin observed build up in long position while Adani Ent observed build up in short position.

HAVELLS has been taking multiple supports near to its 260-265 zones and moving after consolidation of last nine trading sessions. It has been witnessing short covering activities and now fresh built up may drive the momentum for the higher side. It gave the highest close of last three weeks and set to start next move towards 285-290 zones. Thus one can buy the stock with stop loss of 268 for the upside target of 285 levels.

Buy Havells Between Rs. 272 to 275,Stop Loss 268,Target 285 

LUPIN has recently made base near to 1600 zones after the weakness of April and May series. It is making a strong price pattern as turning from lower band of the trading range after the consolidation of last six weeks. It has added significant built up of long positions as open interest jumped by 67% in a single day. One can buy the stock on small decline with stop loss of 1750 for the upside target of 1858 levels. 

Buy Lupin Between Rs. 1777 to 1795,Stop Loss 1750,Target 1858