Nifty Overview & Outlook

The Nifty benchmark index experienced a lackluster session with lack of significant macroeconomic or news-driven triggers. Initially opening on a neutral to positive stance, Nifty attempted to reach yet another all-time high but eventually reversed to close marginally lower. Likewise, Bank Nifty retraced from its peak during the day and closed flat.

Conversely, broader market indices showed considerable strength compared to the benchmark index. Smallcap stocks led the charge, posting gains of nearly 2%, while the Midcap index increased by 0.6%. Notable sectoral performers included Nifty Media, which was the top gainer with nearly 2% growth, primarily driven by robust movement in ZEE Ltd. Nifty Realty followed with a 1.3% increase, and the Pharma sector saw a surge of 1%. Conversely, the Nifty IT index weighed down the benchmark index, declining by almost 2%.

Nifty witnessed resistance at its upward sloping channel pattern, struggling to breach it during intraday trading session. Despite efforts, Nifty ultimately concluded below this line, signaling a potential bearish reversal which would confirm if the next trading session shows correction. Our support stands at 22,910. On the other hand, today’s setback can just be breather before a notable breakout which we might see occurring in the following session. In that case, we hold resistance levels at 23,410 and subsequently at 23,760.

Derivatives Overview & Outlook

Yesterday, short buildup was seen in Finnifty and Midcap nifty futures with increase in open interest by 1.6% and 1.2% respectively while some long unwinding was observed in Nifty and Banknifty futures with decrease in open interest by 5.3% each.

Performance on the sectoral front was mix. Amongst them, long buildup was seen in Cement, Chemical, Infrastructure and Media stocks, whereas short buildup was seen in Metal and Technology stocks.

On option front, call writing along with put writing was seen at multiple strikes and maximum positions are at 24000 CE followed by 23500 CE while the maximum put positions are at 23000 closely.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2572 Cr in the cash segment, sold stocks futures worth Rs 5399 Cr and bought index futures worth Rs 3064 Cr. DIIs too were net buyer in the cash segment to the tune of Rs 2764 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23400-23480; Supports 23000-22800

Banknifty – Resistances 50100-50300; Supports 49200-49000

Finnifty – Resistances 22300-22350; Supports 22000-21900

F&O Securities in Ban Today – BALRAMCHIN, INDIACEM, SAIL, ZEEL.

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