Nifty Overview & Outlook

The Nifty, India’s benchmark index, has been trading cautiously positive in recent sessions amid anticipation of the Fed’s rate cut decision and the domestic budget following the retention of the Modi Government. However, it has also faced intraday volatility amidst ongoing quarterly results. Starting positively, Nifty closed relatively unchanged after fluctuating within a narrow range, while the Bank Nifty ended the session flat to negative.

In the broader market, both the Midcap and Smallcap indices showed subdued performance, with the Midcap index edging marginally lower by 0.3% and the Smallcap index closing flat.

Sector-wise, Nifty Realty led the gains with a significant rise of 1.7%, followed by a 1% increase in Nifty FMCG. Conversely, Nifty Media was the top performer on the downside, closing 1% lower. Market breadth remained slightly negative, with 231 stocks advancing and 266 declining.

From a technical standpoint, Nifty continues its trend of range-bound volatility while maintaining its record high levels. Another Doji candlestick on the daily chart reinforces indecisiveness, with resistance levels seen at 24,710 and 24,840, and support levels adjusted slightly higher to 24,460 and 24,340 in anticipation of potential corrections.

Derivatives Overview & Outlook

Last Tuesday, long unwinding was seen in Banknifty and Finnifty futures with decrease in open interest by 3.5% and 5.7% respectively, whereas some long buildup was seen Nifty futures with increase in open interest by 1.6% and no meaningful activity was seen in Midcapnifty futures on open interest front.

Performance on the sectoral front was mix. Amongst them, short buildup was observed in Capital Goods, Media and Power stocks, whereas some long buildup was seen in FMCG, Technology and Textile stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 24000 PE followed by 24600 PE and 25000 CE followed by 24700 CE.

Institutional Trading Activity

Last Tuesday, FIIs bought stocks worth Rs 1271 Cr in the cash segment, sold stocks futures worth Rs 3335 Cr and also sold index futures worth Rs 58 Cr.  DIIs were net seller in the cash segment to the tune of Rs 529 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 24680-24750; Supports 24520-24480

Banknifty – Resistances 52800-53000; Supports 52000-51800

Finnifty – Resistances 23800-23900; Supports 23600-23550

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