Nifty Overview & Outlook

The Nifty benchmark index concluded the session with minimal movement for the second consecutive day, maintaining a lackluster tone. Similarly, the Bank Nifty also ended with a slight decline of 0.15% following a lull trading session.

Conversely, the broader market indices posted relatively stronger performance compared to the benchmark index. The Midcap index led the move with gains of nearly 0.7%, while the Smallcap index recorded an increase of half a percent.

On sector-specific front, Nifty Media retained its leading position for the second consecutive day, registering growth of nearly 1.8%. Additionally, Nifty Realty followed suit with a 1.1% increase. However, several sectoral indices closed marginally lower, with the Pharma index leading the decline with a loss of 0.4%.

The Nifty continues to face resistance at the upper trendline of its upward sloping channel pattern. It ended the day in consolidation for the second consecutive session, closing unchanged. Therefore, we maintain our support level view at 22,910. Despite the flat closing, there are no clear indications of a reversal yet. Hence, in the event of a rebound, we hold resistance levels at 23,410 and subsequently at 23,760.

Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Banknifty and Midcap nifty futures with increase in open interest by 1%, 1.1% and 7.3% respectively whereas some short covering was observed in Finnifty futures with decrease in open interest by 4.2%.

Majority of sectoral indices settled on a positive note. Amongst them, long buildup was seen in Infrastructure, Media, Realty and Telecom stocks, whereas some short buildup was seen in Metal and Pharma stocks.

On option front, 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 22500 closely followed by 23000 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 111 Cr in the cash segment, sold stocks futures worth Rs 2059 Cr and bought index futures worth Rs 970 Cr.  DIIs were net buyer in the cash segment to the tune of Rs 3193 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23400-23480; Supports 23200-23000

Banknifty – Resistances 50100-50300; Supports 49500-49200

Finnifty – Resistances 22300-22350; Supports 22080-22000

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

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