Nifty Overview & Outlook

Despite the initial gap down opening, the Indian benchmark index Nifty swiftly began climbing from the opening price, successfully closing slightly above its previous mark after filling the entire gap. Conversely, Bank Nifty experienced volatility, where the second half of the session erased the early morning gains, resulting in a marginal downturn at the close.

Looking at the broader market, Midcap stocks traded in line with the benchmark, while Smallcap index underperformed, experiencing a 0.4% loss.

In terms of sector performance, the Nifty Metal index stood out recording a 3.9% gain driven by strong performances from Hindalco, Tata Steel, and JSW Steel, each with gains exceeding 3%. Additionally, Nifty PSU Banks, Nifty Media, and Nifty Energy surged by more than 1% each. Conversely, the Nifty Private Bank index hindered market gains, dropping by 0.6%, with ICICI Bank and IndusInd Bank each losing 1%.

Following Saturday’s lull move, Nifty resumed its upside move but with a twist. Despite starting the session with a gap down Nifty managed to fill the gap during the trading day and ended in positive territory. The index paused its upward trajectory near the 78.6% retracement level of the previous rally. Thereby we hold immediate resistance at 22,586, followed by 22,795.

On the downside, Nifty initially opened at the 23.6% retracement level of the current rally, indicating first support near the open-low of the day at 22,400, followed by 22,295.

Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Finnifty futures with decrease in open interest by 43%, whereas long buildup was seen in Nifty futures with increase in open interest by 1.4%. On the other hand, no meaningful activity was seen in Banknifty and Midcap nifty futures on price as well as on open interest front.

Majority of F&O sectors settled higher. Amongst them, Capital Goods, Metal, Oil & Gas and  Power stocks witnessed maximum additions of long positions, whereas short buildup was seen in Banking, FMCG, Finance and Technology stocks. On the other hand, Long unwinding was seen 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 22500 PE closely followed by 22400 PE and 23000 CE followed by 22500 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1875 Cr in the cash segment, bought stocks futures worth Rs 1503 Cr and also bought index futures worth Rs 2015 Cr.  DIIs were net buyer in the cash segment to the tune of Rs 3549 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22700-22800; Supports 22520-22450

Banknifty – Resistances 48400-48600; Supports 47600-47400

Finnifty – Resistances 21550-21600; Supports 21400-21300

F&O Securities in Ban Today – ABCAPITAL, BALRAMCHIN, BIOCON, BANDHANBNK, GMRINFRA, GRANULES, NATIONALUM, IDEA, IEX, INDIACEM, PEL, PNB, ZEEL.

Important Results Today– ASHOKA, EVERESTIND, GLAND, GRASIM, GRSE, HEG, JUBLFOOD, METROBRAND, PAYTM, PETRONET, POWERGRID, RAMCOCEM.

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