Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the downside, fell sharply to achieve its downside targets of 21800 levels during the first hour of trade. Smart and steep recovery from its 100 DEMA i.e. 21827 levels helped it to settle above 22100 levels.

Mid cap index outperformed the benchmark as it rose over 1%, whereas Small cap index underperformed the benchmark as it was down nearly 0.5%.

Performance on the sectoral front was also mix. Pharma, Realty and Metal index were at the top of the tally, gained in range 1-2%. On the other hand, Auto and PSU Bank index were at bottom of the tally, fell 1.68% & 1.23% respectively.

Technically, Nifty index has achieved its initial down targets. Going ahead, we expect this bounce back rally to continue in short term till it is trading above 21950 levels, immediate resistance is placed around 22200-22300 zones.

Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Finnifty and Midcap nifty futures with increase in open interest by 3.2%, 9.8% and 8.4% respectively. On the other hand, short covering was seen in Banknifty futures with decrease in open interest by 3.1%.

Majority of F&O sectors settled higher. Long buildup was observed in Capital Goods, Finance and  Pharma stocks whereas, short covering was seen in Metal, Cement and Banking stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 21000 PE followed by 21500& 22000 PE and 23000 CE closely followed by 22500 & 22300 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4499 Cr in the cash segment, bought stocks futures worth Rs 296 Cr and sold index futures worth Rs 951 Cr.  DIIs were net buyer in the cash segment to the tune of Rs 3563 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22350-22480; Supports 22080-21980

Banknifty – Resistances 48500-48800; Supports 47500-47200

Finnifty – Resistances 21480-21550; Supports 21200-21080

F&O Securities in Ban Today – HIND COPPER, BALRAMCHIN, CANBK, GMRINFRA, IDEA, PNB, SAIL, ZEEL,  PEL

Important Results Today– APOLLOTYRE, BHARTIARTL, SIEMENS, PVRINOX, OBEROIRLTY, COLPAL, SHREECEM, RADICO, BLS.

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