Nifty Overview & Outlook

The weekly expiry day ended with the benchmark index Nifty closing flat to slightly positive after a notably volatile session influenced by mixed movements in Asian market indices. Domestically, the Bank Nifty experienced volatility, driven by private banks gaining ground while PSU banks weakened, contributing to overall market volatility. Consequently, Nifty closed with a modest increase of 0.2%, while Bank Nifty outperformed with gains of 0.8%.

In the broader markets, both the Midcap and Smallcap indices edged higher, slightly outperforming the benchmark. The Midcap index rose by 0.6%, while the Smallcap index saw a 0.3% increase.

Sector-wise, Nifty Realty showed a strong recovery following significant losses in the previous session, leading with gains of 2%. This was followed by Nifty Metal, which surged 1.8%, and Nifty Private Banks, up by 1%. Conversely, Nifty Pharma, Auto, and Nifty PSU Banks ended the day with marginal declines, acting as draggers.

From a technical standpoint, the Nifty index consolidated near its peak and ended flat after intraday volatility. Investors are advised to adopt a cautious stance as Nifty could potentially signal either a continuation of the rally or a reversal. Key support levels are maintained at 23,100 and 22,750, while resistance levels remain unchanged at 23,760, with a new resistance level observed at 24,030.

Derivatives Overview & Outlook

Yesterday, Banknifty, Finnifty and Midcap nifty futures rose on short covering as mentioned indices shed around 0.4% , 2.9% and 0.8% of open interest respectively, whereas long buildup was seen in Nifty futures with increase in open interest by 2.4%.

All F&O sectors, barring Power and Telecom, settled higher. Amongst them, Chemical and Oil & Gas stocks witnessed maximum addition of long positions.

On options front, Nifty will start the new weekly contracts with maximum positions at 24000 CE and 23000 PE followed by 23500 PE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 415 Cr in the cash segment, bought index futures worth Rs 1740 Cr and sold stocks futures worth Rs 3175 Cr. DIIs were net seller in the cash segment to the tune of Rs 326 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23670-23720; Supports 23500-23400

Banknifty – Resistances 51900-52020; Supports 51600-51400

Finnifty – Resistances 23150-23200; Supports 22800-22700

F&O Securities in Ban Today – BALRAMCHIN, BSOFT, GNFC, HAL, HINDCOPPER, INDUSTOWER, PEL.

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