Nifty Overview & Outlook

Benchmark Nifty index settled lower at 23883 levels after a cut of 258 points from its previous closing values.

Broader market performed in line with the benchmark as both Mid and Small-cap index fell more than 1%.

All sectoral indices, barring Realty and IT, settled in red. Amongst them, Auto and PSU Bank index led the declines, fell nearly 2% each followed by Fin Services, Banknifty and FMCG index that fell more than 1% each.

Technically, Nifty index is trading on verge of break down from the congestion zone of 23800-24500 levels. Cross and sustenance below 23800 will be a negative development that might take it toward 23400 levels in immediate near term.

Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty, Banknifty and Finnifty futures with an increase in open interest by 3.6%, 15.2% and 22.7 respectively while no meaningful activities was seen in Midcapnifty futures on open interest front.

All of the sectoral indices, barring Cement, settled lower. Amongst them, Banking, Capital Goods, FMCG and Power stocks witnessed maximum additions of short positions, whereas some long unwinding was seen among Pharma, Realty and Technology and stocks.

On option front, aggressive call writing was seen at multiple strikes and maximum positions are at 24500 CE and 22250 PE followed by 23000 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3024 Cr in the cash segment, sold stocks futures and index future worth Rs 3535 Cr and Rs 734 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 1854 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 24100-24200; Supports 23800-23500

Banknifty – Resistances 51800-52200; Supports 51200-50800

Finnifty – Resistances 23800- 24000; Supports 23600-23500

F&O Security in Ban Today: AARTIIND, ABFRL, GRANULES, HINDCOPPER,  MANAPPURAM.

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