Nifty Overview & Outlook

Benchmark Nifty index ended sharply lower at 23559 levels after a cut of 324 points from its previous closing values.

Broader markets underperformed the benchmark as Mid and Small cap index fell 2.44% & 2.96% respectively.

Performance on the sectoral front was no different as all sectoral indices tracked at NSE ended in red. Amongst them, Realty index was the worst performer, fell over 3% followed by Auto, Banking, Media and Metal that fell over 2% each.

Technically, Nifty index has reached around its 200 EMA on daily charts; hence, possibility of some relief rally can not be ruled out at this juncture. On levels front, 23450-23500 will act as immediate support on the down side and 23800-23850 zone will act as immediate resistance zone on the higher side.

Derivatives Overview & Outlook

Yesterday, short buildup was seen among all major indices as Nifty, Banknifty, Finnifty and Midcapnifty futures as they added 3.7%, 2.4%, 1% & 1% of open interest respectively .

All of the sectoral indices settled lower. Amongst them, Chemical, Capital Goods and Media stocks witnessed maximum additions of short positions, whereas some long unwinding was seen among Oil & Gas and Realty stocks.

On option front, aggressive call writing was seen at multiple strikes and maximum positions are at 24000 CE and 23000 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2503 Cr in the cash segment, bought stocks futures worth Rs 2455 and sold index future worth Rs 1886 Cr. DIIs were net buyers in the cash segment to the tune of Rs 6145 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23800-24000; Supports 23600-23500

Banknifty – Resistances 51300-51500; Supports 50000-49800

Finnifty – Resistances 23500- 23800; Supports 23200-23100

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

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