Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8047) CNX Nifty opened negative and remained under pressure for first part of the trading session. However, later it rebounded in last hour of trade and swiftly crossed its hurdle of 8050 levels to strike an intraday high of 8061. Banks and Auto were the major support in the positive move of nifty as it managed to close with the gains of around 35 points. The index started forming higher – higher lows from last two trading sessions and is turning from the lower band of the range. Now it has to sustain above 8000 zones to continue the bounce back move towards 8080-8120 zones. While on the downside support exist at around 7950 then 7900 zones. Index has marked multiple hurdles at every small up move so traders need to trade the market cautiously.

CNX NIFTY declined gradually post dull opening and reached to 7,952 mark til late noon trades, but later surprise buying across the board lifted index 110 points higher from the day's low and facilitated positive closing for straight third trading session in a row.

• CNX NIFTY finished trade with gain of 33 points at 8,047 level.
• NSE Cash segment witnessed turnover of about Rs12,427 crores as compared to Rs11,654 crores earlier.
• Overall market breadth remained positive, where 751 stocks advanced against 702 declined stocks.
• Positive trend was witnessed amongst all sectoral indices during the day, where CNX PSU BANK, CNX AUTO & CNX MEDIA emerged as top gainers with the increase of 1.5% - 1.2%.

CNX NIFTY OUTLOOK

• CNX NIFTY found good support around 7,940-7,950 range after witnessing a sharp fall from 8,467 mark and strived to recover prior loss. Despite decent efforts, our near-term technical view will remain negative, as fresh market participation level is still below its 2-week average, signaling lack of strength in the reversal. We believe index will face hurdle around its 20- days EMA (i.e. placed at 8,160 mark) on further rise and surrender entire gain, however major decline will be seen only below 7,940 mark.
• As for the day, support is placed at 7,940 and then at 7,900 levels, while resistance observed at 8,120 and then at 8,160 levels.
• Nifty opened negative and tested 7950 levels before recovering in the last hour to close above 8000.
• Nifty added 33 points to close at 8047.
• OI concentration is seen at 8200CE and 7800PE.
• Addition witnessed in 8200CE and 8000PE.
• PCR OI stands at 0.85 compared to 0.85 in the previous trading session.
• Nifty to trade with a resistance of 8130.

Stocks

• Banking and FMCG stocks gained as Nifty closed comfortably above 8000.
• From the two wheeler space, Heromoto co has made a 'U' shaped recovery from its lows of 2490 levels. The stock has shown a good reversal and can gain significantly. The stock now trades with a positive bias in the weekly and daily charts. The RSI also indicates a positive trend. One can accumulate the same at current levels for a near term target of 2610.
• Market wide open interest is seen at Rs.224,724Cr.
• Amongst sectoral index, CNX Auto adds fresh long position.
• Arvind Ltd witnessed build up in short position.

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 99.50 for the downside target of 93.50 levels. 

Sell Jindal Steel Between Rs. 97 to 98,Stop Loss 99.50,Target 93.50 

HINDUNILVR has formed a support base at 800-810 levels and crossed its immediate hurdle of 830 zones. It has added delivery volumes and looks strong in terms of risk reward ratio with built of long position. One can buy the stock with stop loss of 798 for the upside target of 849 levels. 

Buy Hindunilvr Between Rs. 811 to 819,Stop Loss 798,Target 849