Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side but failed to hold near resistance levels of 22300 levels, and settled on a flat note at 22200 levels after a lackluster trading session.

Broader markets outperformed the benchmark as Mid and Small cap indices gained 0.70% & 0.58% respectively.

Performance on the sectoral front was mix. PSU bank index was the top performer, gained 1.42% followed by Realty index that rose over 1%. On the other hand, FMCG index was at the bottom of the tally, fell nearly 1%.

The bounce back in Nifty index took a pause around the 50% Fibonacci retracement level of previous down move from 22795 to 21821 levels. Technically, Nifty index is still trading in a broad range of 21800-22800 levels. Going ahead, crossover and sustenance above 22325 will hold the key for any sustainable up move towards 22550 in immediate near term.

Derivatives Overview & Outlook

Yesterday, short buildup was seen in Banknifty and Finnifty futures as both added around 5.3% and 21.6% of open interest respectively whereas no major development was seen in Nifty and Midcap nifty futures on price as well as on open interest front.

Performance on the sectoral front was mix. Amongst them, Pharma and Oil & Gas stocks witnessed some addition of long positions whereas Chemical and FMCG stocks were down on short buildup along with some long unwinding in Automobile, Cement and Media stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 22000 PE and 22500 CE. Options data indicating continuation of sideways move in a board range.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2833 Cr in the cash segment, sold stocks futures worth Rs 2793 Cr and also sold index futures worth Rs 1967 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3788 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22400-22520; Supports 22200-22100

Banknifty – Resistances 48220-48380; Supports 47750-47600

Finnifty – Resistances 21400-21480; Supports 21200-21100

F&O Securities in Ban Today – BALRAMCHIN, BIOCON, BSOFT, GMRINFRA, GRANULES, HINDCOPPER, IDEA, INDIACEM, LICHSGFIN, PEL, SAIL, ZEEL

Important Results Today– BIOCON, CONCOR, CROMPTON, GAIL, HAL, IDEA, M&M, NAUKRI

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