Asian shares edged higher on Tuesday, buoyed by expectations about the US-China trade talks as officials struck a positive tone after the first day of negotiations.
While no significant breakthroughs were announced after the first day of talks and stocks pared some of their earlier gains, US officials sounded optimistic about the negotiations.
Global Stock Market Today
Benchmark Nifty index settled higher at 25003 levels in a sentiments driven rally after RBI’s announcement on interest rates reduction and liquidity enhancement by reducing CRR in a phased manner.
Broader markets performed in line with the benchmark as Mid and Small cap indices rose 1.21% & 0.81% respectively.
All sectoral indices, barring Media, settled higher. Amongst them, Realty index was the top performer, soared 4.68% followed by Banking, Finance, Auto and Metal index that rose over 1.5% each.
Technically, Nifty index is trading on verge of fresh breakout from the congestion zone of 24480-25120 spot levels. Cross and sustenance above 25120 spot levels might take it higher up to 25500-25600 spot levels in immediate near term. On the hand, Banknifty index witnessed breakout from the congestion zone of last Seven weeks on Friday, setting up targets in range 57500-57800 spot levels in immediate near term.
Derivatives Overview & Outlook
Yesterday, Finnifty and Midcapnifty futures added 38.7% and 9.2% of open interest respectively as long buildup while no significant change was seen in Nifty and Banknifty futures on open interest front.
All F&O sectors settled on a higher note. Amongst them, Capital Goods, Infrastructure , Pharma, Power and Really stocks witnessed maximum addition of long positions along with some short covering in Textile stocks.
On option front, put writing was seen at multiple strikes with maximum positions at 24000 PE followed by 25000 PE along with some call addition at out the money strikes. Maximum call positions are at 26000 CE followed by 25500 CE.
Institutional Trading Activity
Yesterday, FIIs bought stocks worth Rs 1993 Cr in the cash segment, sold index futures worth Rs 538 Cr and bought stocks futures worth Rs 19 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 3504 crore Cr.
Nifty Futures, Banknifty Futures and Finnifty Futures Key Levels
Nifty – Resistances 25250-25320; Supports 25100-24980
Banknifty – Resistances 57200-57500; Supports 56800-56600
Finnifty – Resistances 27150- 27250; Supports 27000-26900
F&O Security in Ban Today: TITAGARH, HINDCOPPER, ABFRL, CHAMBELFERT
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