Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8022) CNX Nifty opened negative after the sharp cut in previous trading session. The market traded on a choppy note as it witnessed a lot of intraday swing between positive and negative territory on the back of mixed trend among sectors. However, the index managed to protect its 8000 levels, hitting an intraday low of 8005 and finally settled the day with the loss of 22 points. Now it has to cross and hold above 8100-8120 zone to negate its negative price structure else weakness may continue in the market towards psychological 8000 then 7950 levels. On upside it has marked multiple hurdles at every small bounce back move at 8080 then 8120 and 8150 zones. Traders need to take cautious approach as overall trend of the market is negative but it is trading near to crucial support zone at oversold territory

CNX NIFTY spent entire day oscillating in 8,057-8,005 range on absence of headlines in the market and finally shut the shop on negative note for straight seventh trading session in a row.

• CNX NIFTY ended the day with loss of 22 points at 8,022 mark.
• NSE Cash segment witnessed turnover of about Rs13,569 crores as compared to Rs12,894 crores earlier.
• Overall market breadth remained negative, where 551 stocks advanced against 920 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX METAL emerged as a top gainer with the increase of 0.7% and CNX PHARMA & CNX REALTY emerged as top losers with the decrease of 1.8%-1.7%.

CNX NIFTY OUTLOOK

• Though, CNX NIFTY lost over 200 points post our short recommendation (from 8,236 to 8,022), our near-term technical view will remain negative with probable down move towards 7,700-7,600 range, provided index closes below 8,000 mark decisively. In case of any rebound, index will face hurdle around 8,270-8,300 range.
• As for the day, support is placed at 8,000 and then at 7,960 levels, while resistance observed at 8,060 and then at 8,100 levels
• Nifty continued it's decent as it continued to test lows of 8000 levels.
• Nifty lost 21 points to close at 8022.
• OI concentration is seen at 8500CE and 8000PE.
• Addition witnessed in 8300CE and in 7800PE.
• PCR OI stands at 0.80 compared to 0.84 in the previous trading session. 
• Nifty to trade with a resistance of 8200.

Stocks

• Pharma stocks pulled Nifty down with Cipla, DRL and SunPharma being among the top losers on the index.
• Despite high volatility Axis Bank has not broken key support level of 540 on closing basis in previous few sessions. Axis Bank can be bought with a SL below 540 with near term target of around 585/590.
• Market wide open interest is seen at Rs.211,863Cr.

JINDALSTEL is falling from last four series and has broken all its support levels. It is in the bear grip as witnesses selling pressure at every bounce back move. We are observing fresh short position which may drag it to further lower levels. Traders can sell the stock on bounce back move with stop loss of 107 for the downside target of 100 levels. 

Sell JINDAL STEEL Between Rs. 104 to 105,Stop Loss 107,Target 100 

POWERGRID has been forming higher highs – higher lows even after sharp selling pressure being witnessed in the broader market. It gave the highest daily close of last 32 trading sessions with built up of long position thus showing potential to move towards 155.50 levels. Thus traders can buy the stock with stop loss of 141.50 for the upside target of 150.5 levels. 

Buy Power Grid Between Rs. 144 to 145,Stop Loss 141.5,Target 150.5