Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8014) CNX Nifty opened positive with modest gains and hovered around its psychological level of 8000 zones and later rallied to make an intraday high of 8057 levels, but could not hold above 8050 levels finally closing with the gains of around 31 points. It is finding difficulty in crossing 8050 mark as selling is seen in every bounce back move thus traders are required to remain cautious. Now till it doesn’t cross and hold above 8020-8050 zones weakness may continue in the market towards 7900 and 7850 zones. While on upside if it sustains above 8000-8020 zones then only we may witness a continuation of bounce back move towards 8080 and 8120 levels. Index has marked multiple hurdles at every small up move so traders need to trade the market cautiously.

CNX NIFTY begun the session on a flat note, but after witnessing sharp decline till 7,945 level, jumped ~90 points from the day's low immediately and later utilized narrow range oscillation to climb higher level of 8,058 during the day. Finally, after facing minor decline, index closed the session with gain of 31 points at 8,014 level.

• NSE Cash segment witnessed turnover of about Rs11,654 crores as compared to Rs12,623 crores earlier.
• Overall market breadth remained positive, where 822 stocks advanced against 634 declined stocks.
• Mixed trend was witnessed amongst sectoral indices during the day, where CNX MEDIA & CNX AUTO emerged as top gainers with the increase of 1.9% & 1.2% respectively. On the other hand, CNX PSU BANK emerged as a top loser with the decrease of 1.6%.

CNX NIFTY OUTLOOK

• CNX NIFTY closed tad above 8,000 mark post witnessing 75 points of rebound from Friday's closing price. We believe such bounce back will not last longer, as fresh market participation level declined compared to prior trading session, which suggests lack of strength in the rebound. As mentioned earlier, our near-term technical view will remain negative with probable down move towards 7,700-7,600 range, however index will face hurdle around its 20-days EMA (i.e. placed around 8,170 mark) in case of major bounce back.
• As for the day, support is placed at 7,940 and then at 7,900 levels, while resistance observed at 8,060 and then at 8,120 levels.
• Nifty opened on positive note and consolidated in the second half of the trading session.
• Nifty added 31 points to close at 8013.
• OI concentration is seen at 8500CE and 7800PE.
• Activity witnessed in 8000 strike.
• PCR OI stands at 0.85 compared to 0.78 in the previous trading session.
• Nifty to trade with a resistance of 8200.

Stocks

• Reliance, HDFC ltd and ITC gained as Nifty closed positive.
• From the banking space, ICICI bank had been trading with a major resistance of 295. The stock has managed to break the same and close about it. This has opened up significant space on the upside. The stock trades with a positive bias in the weekly and daily charts. One can enter the same at current levels for a near term target of 312.
• Market wide open interest is seen at Rs.223,040Cr.

AMBUJACEM has recently failed to cross its multiple hurdles of 242-244 zones and corrected from 240 to 215 levels. It is falling from last three sessions with lower highs price formation. It has witnessed built up of short position as open interest jumped by around 12% in last couple of sessions. It has snapped bounce back move of last five weeks and broken weekly support of 223 levels. One can sell the stock on small bounce back move with stop loss of 223 for the downside target of 211 levels. 

Sell Between Rs. 218 to 220,Stop Loss 223,Target 211 

BATA INDIA is moving after taking multiple support at 1000 levels and turning from the lower band of the range. It is giving the early signs of breakout from the falling supply trend line with built up of long position. One can buy the stock with stop loss of 979 for the upside target of 1039 levels. 

Buy Between Rs. 994 to 1004,Stop Loss 979,Target 1039