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 Banknifty and Finnifty futures with increase in open interest by 9% and 17.5% respectively, whereas Nifty and Midcapnifty futures added around 1% and 17.5% of open interest as short buildup.

Majority of F&O sectors settled lower. Short buildup was seen among Capital Goods, Infrastructure, Oil & Gas, and Telecom stocks, whereas some long buildup was seen in Banking and Chemical stocks.

On options front, call writing was seen in multiple strikes and maximum positions are at 24000 CE followed by 23600 CE while the maximum put position are at 23000 PE followed by 23500 PE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 7908 Cr in the cash segment, bought index futures worth Rs 4356 Cr also bought stocks futures worth Rs 943 Cr. DIIs were net buyers in the cash segment to the tune of Rs 7108 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23650-23700; Supports 23520-23450

Banknifty – Resistances 51800-52000; Supports 51000-50500

Finnifty – Resistances 23100-23200; Supports 22800-22700

F&O Securities in Ban Today – BALRAMCHIN, CHAMBLFERT, HAL HINDCOPPER, INDIACEM, INDUSTOWER, PEL, SAIL.

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