Nifty Derivative Snapshot & Derivative Stock Recommendations

NIFTY (8092) CNX Nifty opened gap up and continued their up move for the fourth straight session and surged above its psychological 8100 levels on the back of buying in blue-chip stocks. However it failed to sustain its 8100 levels but managed to end the session with the gains of around 50 points. It formed a DOJI candle on the daily chart and moved above its 13 EMA. Now till it manages to hold its 8080 level then further up move can be expected towards 8120-8150 levels. While on the downside support exists around 8050 then 8000 levels. Index has marked multiple hurdles at every small up move so traders need to trade the market cautiously.

CNX NIFTY slipped to 8,049 level post firm opening and after gradual advance extended gain sharply till 8,137 mark, but finally settled the session below 8,100 level amidst late trade surprise hammering.

• CNX NIFTY finished trade with gain of 44 points at 8,092 level.
• NSE Cash segment witnessed turnover of about Rs16,105 crores as compared to Rs12,427 crores earlier.
• Overall market breadth remained positive, where 1024 stocks advanced against 445 declined stocks.
• Except BANK NIFTY (lost 0.1%), positive trend was witnessed amongst all sectoral indices during the day, where CNX MEDIA, CNX PHARMA & CNX FMCG emerged as top gainers with the increase of 1.9% - 1.6%.

CNX NIFTY OUTLOOK

• Though, it was fourth consecutive up tick for CNX NIFTY, but index ended with a "Doji - formation" on daily chart signaling uncertainty in recent up move. We believe such kind of rebounds are not long-lasting and soon surrenders entire gain. As mentioned earlier, our near-term technical view will remain negative till the time index trades below its 20-day EMA (i.e. placed around 8,150 mark), however major decline will be seen only below 7,940 level.
• As for the day, support is placed at 8,050 and then at 7,940 levels, while resistance observed at 8,150 and then at 8,220 levels.
• Nifty reversed its trend from 7948.95 levels to make an intraday high of
• 8136 but gave up some the gains in the last hour of the trading session.
• Nifty added 44 points to close at 8091.
• OI concentration is seen at 8200CE and 7800PE.
• Addition witnessed in 8200CE and 8000PE.
• PCR OI stands at 0.84 compared to 0.85 in the previous trading session.
• Nifty to trade with a resistance of 8130.

Stocks

• Reliance and Hindunilvr supported Nifty at higher levels.
• Reliance Industries broke out of multiple resistances with high volumes on daily charts. It can be bought with a stop loss below 920 and a near term target of 950/960.
• Market wide open interest is seen at Rs.228,647Cr

JINDALSTEL is falling from last four series and has broken all its support levels. It is in the bear grip as it witnessed 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 100.50 for the downside target of 94.50 levels. 

Sell JINDAL STEEL Between Rs. 98 to 99,Stop Loss 100.50,Target 94.50 

VOLTAS is hovering near the lifetime high territory and has formed a support base at 325-328 zones. It has added significant open interest by around 10% even at lifetime high territory, which indicates that longs are adding their positions for the next leg of rally. It has crossed the immediate hurdle of 335 zones and all set to start next up move towards 348 and 353 zones. Thus traders can buy the stock with stop loss of 328 for the upside immediate target of 347.50 levels.

Buy Voltas Between Rs. 333 to 336,Stop Loss 328,Target 347.50