Nifty Overview & Outlook

The Indian benchmark index experienced its third consecutive lackluster day, as investors awaited the Federal Reserve’s meeting and potential rate cut decision. The market was also impacted by the Bank of Japan’s meeting and declines in other Asian markets. Although the Nifty opened positively, it remained subdued throughout the day, closing marginally up by 0.4%. The Nifty Bank underperformed, closing nearly flat with 0.1% gain, dragged by the performance of PSU Banks.

On the broader front, Midcap index outperformed the benchmark, rising by 0.9%, while the Smallcap index lagged, closing down 0.3%. Sector-wise, the Nifty Metal index led with a 1.2% increase, followed by Nifty Pharma and Nifty Media, each gaining over 1%. Conversely, the Nifty PSU Banks and Nifty Realty indices fell by 0.4% each. Overall market breadth was flat, with 247 stocks advancing and 251 declining.

From a technical standpoint, the Nifty is consolidating at its peak and is lacking clear direction. It ended the day with a Doji candlestick, indicating a positive bias. On the intraday chart, the Nifty has formed a Symmetric Triangle with resistance at 24970-25000. If it moves above these levels, the next resistance points are at 25,190 which is the Triangle target and 25,270. Conversely, If Nifty reverses and closes below 24890-24830, a correction may follow. Support levels are at 24700 and 24510.

Derivatives Overview & Outlook

Yesterday, Banknifty & Finnifty futures shed around 11.9% and 2.8% of open interest as short covering, Nifty futures added around 5.5% of open interest as long buildup and Midcapnifty index futures remained unchanged on open interest front.

Majority of sectoral indices settled higher. Amongst them, FMCG, Finance, Metal, Pharma and Realty stocks witnessed maximum addition of long positions, whereas some short buildup witness in Banking and Telecom socks.

On options front, call writing was seen at 25000 strikes along with put writing at 25000 strikes and maximum positions are at 24500 PE closely followed by 24440 PE and 25000 CE closely followed by 25200 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3462 Cr in the cash segment, sold stocks futures worth Rs 640 Cr and also sold index futures worth Rs 1267 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3367 Cr

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 25000-25080; Supports 24950-24850

Banknifty – Resistances 52000-52250; Supports 51500-51250

Finnifty – Resistances 23600-23700; Supports 23450-23380

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