Nifty Overview & Outlook

Despite weak global cues and a subdued start across other Asian markets, the Indian benchmark index Nifty opened at a historic high and maintained its gains throughout the session, closing with a modest increase of 0.4%. The Bank Nifty outperformed the benchmark, finishing 0.9% higher, marking a breakout after consolidating for five days.

In the broader market, the Smallcap index continued its upward trend, marking its eighth consecutive gain and outperforming the Nifty with a 1% rise. Meanwhile, the Midcap index closed nearly in line with the benchmark, ending 0.4% higher.

Sector-wise, Nifty Realty and Nifty Pvt. Banks saw significant gains of over 1% each, while Nifty Media and Pharma were the lead laggards, declining by 0.6% and 0.4% respectively.

Technically, the Nifty index has broken out of an upward sloping channel pattern, though it has yet to show a significant bullish signal on the daily timeframe. Consequently, our support levels are adjusted slightly upwards to 23,030 and then 22,700. With Nifty surpassing the first resistance at 23,410, the next anticipated resistance level is at 23,760.

Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Banknifty, Finnifty and Midcap nifty futures with increase in open interest by 2.1%, 4.9%, 39% and 2.5% respectively.

Majority of sectoral indices settled on long buildup. Amongst them, Finance, Capital Good, Chemical and Telecom stocks witnessed maximum addition of long positions, whereas some short buildup was seen in Pharma stocks.

On option front, put writing was seen at multiple strikes and maximum positions are at 23000 PE followed by 23400 PE and 24000 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2569 Cr in the cash segment, sold stocks futures worth Rs 710 Cr and bought index futures worth Rs 779 Cr. DIIs were net buyer in the cash segment to the tune of Rs 1556 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23620-23700; Supports 23520-23450

Banknifty – Resistances 50800-51000; Supports 50000-49800

Finnifty – Resistances 22700-22800; Supports 22400-22300

F&O Securities in Ban Today – BALRAMCHIN, GNFC, HINDCOPPER, INDIACEM, PEL, SAIL, SUNTV.

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