Nifty Overview & Outlook

The Nifty benchmark index started off the day with an optimistic tone witnessed significant volatility throughout the session, ultimately concluding slightly higher than its opening mark, registering a marginal gain of 0.3%. Conversely, Bank Nifty commenced positively but with the same open and high price, thereby shedding gains, marking a decrease of 0.6% by session’s end.

On the broader front, the Midcap index closed absolutely flat, while the Smallcap index experienced a downturn of 0.4%, both underperforming the benchmark index.

Sector-wise, the Nifty FMCG index led the charge with a significant uptick of 1.4%, cushioned the markets. Similarly, the Realty index mirrored these gains, also climbing by 1.4%. Conversely, Nifty Metal and Bank Nifty exerted downward pressure, each shedding nearly 0.6%.

Not withstanding the intraday volatility, Nifty managed to surpass our mentioned resistance at 22586 which acted as the 78.6% retracement level of the previous down move. Thereby we expect the positive rally to continue in near future. Near term resistance is pegged at 22770-22800, representing the current Triple Top zone. On the downside 22435 is poised to act as the support, corresponding to the initial retracement level of the preceding upside rally.

Derivatives Overview & Outlook

Yesterday, Long buildup was seen in Nifty and Midcap nifty futures with increase in open interest by 1.1% and 1.3% respectively, some short buildup was observed in Finnifty futures with increase in open interest by 11.7%. On the other hand, Banknifty futures open interest shed by 1.1% on long unwinding.

Performance on the sectoral front was mix. Amongst them, long buildup was seen in FMCG, Realty, Technology and Textile stocks, whereas short buildup was seen in Banking, Finance and Metal stocks. Long unwinding was seen in Chemical, Capital Goods and Power stocks.

On option front, call writing along with put writing was seen at multiple strikes and maximum positions are at 23000 CE followed by 22800 CE while the maximum put positions are at 22000 closely followed by 22500 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 686 Cr in the cash segment, sold stocks futures worth Rs 4100 Cr and also sold index futures worth Rs 747 Cr.  DIIs were net buyer in the cash segment to the tune of Rs 962 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 21300-21250

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

Important Results Today– CESC, FINCABLES, INDIGO, JKLAKSHMI, PAGEIND, PCBL, TAJGVK, VAIBHAVGBL.

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