Nifty Overview & Outlook

Release of positive economic data, after the market yesterday, provided a strong boost to the Indian benchmark index at the beginning of the trade in today’s session. The Nifty commenced with a significant gap-up, reaching an all-time high level, driven by May’s Consumer Price Index easing to a 12-month low of 4.75% and April’s Index of Industrial Production growing at 5%. However, Nifty gave up early gains in the morning session itself, resulting in the marginal gains of 0.3%.

Similarly, the Bank Nifty started positively but reversed course to close flat to negative, in the wake of a decline of more than a percent in each ICICI Bank and Axis Bank.

On the other hand, both broader market indices extended their upward trend for the seventh consecutive session, with Midcap and Smallcap sectors showing relatively robust performance. Smallcap closed 1% higher, while Midcap gained 0.8%.

In terms of sector performance, Nifty Realty maintained its upward momentum, advancing by 2.2% after a breather, while Nifty IT followed suit with a 1% increase. However, profit booking impacted Nifty Media, which experienced a 1.1% decline following six consecutive days of gains.

The Nifty opened with a gap-up, but the open and high prices were nearly identical, leading to an intraday decline. With neither side showing significant interest, the Nifty marked its fourth consecutive lackluster session. The support zone is identified at 22,960-22,910, and the Nifty closed just above its previously mentioned channel line. Consequently, resistance levels are anticipated at 23,410 and subsequently at 23,760 if a bounce back is observed.

Derivatives Overview & Outlook

Yesterday, no significant changes was seen in Nifty, Banknifty and Finnifty futures on price as well as on open interest front whereas Midcap Nifty futures added around 2% of open interest as long buildup.

Performance on the sectoral front was mix. Amongst them, long buildup was observed in Capital Good, Realty and Technology stocks, whereas some short buildup was seen in Media and Telecom stocks.

On option front, Nifty will start the new weekly contracts with maximum position at 24000 CE followed by 23400 CE and maximum put position are at 23400 strikes.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3033 Cr in the cash segment, sold stocks futures worth Rs 300 Cr and bought index futures worth Rs 2717 Cr. DIIs too were net seller in the cash segment to the tune of Rs 554 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23460-23520; Supports 23300-23200

Banknifty – Resistances 50250-50500; Supports 49600-49200

Finnifty – Resistances 22410-22500; Supports 22250-22100

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

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