Nifty Overview & Outlook

The Nifty benchmark index kicked off the session with a steady to positive start, gradually gaining momentum to conclude with robust growth of 1.6%. Posting a record high and closing, the Nifty move was majorly driven by the remarkable performances of Adani Group companies, while strong support came from auto majors and private banks, Bank Nifty outperformed the benchmarks with a 2% increase.

However, on the broader market front, both Midcap and Smallcap indices posted modest gains, underperforming the benchmark, with increases of only 0.6% and 0.3% respectively.

In terms of sectors, the Nifty Auto sector significantly uplifted market sentiment, surging by 2.2%, fueled by substantial gains in M&M, Maruti, and Eicher, each registering over 3% increases. Following suit, the BFSI indices trailed the Nifty Auto’s performance. Conversely, the Pharma sector was the sole underperformer, declining by 0.5%.

As anticipated, the rally following the 22586 mark not only sustained but also breached the Triple Top zone of 22770-22800 upon closure. This breach suggests further potential upside for the Nifty, with the next resistance level projected at 23100-23150, corresponding to the upward sloping channel level. On the downside, 22715, representing the 23.6% retracement of the ongoing upward rally, is poised to provide support.

Derivatives Overview & Outlook

Yesterday, Banknifty, Finnifty and Midcap nifty futures rose on short covering as all three major indices shed around 0.5%, 13.4% and 0.5% of open interest respectively. On the other hand, long buildup was seen in Nifty futures with increase in open interest by 6%.

On the sectoral front, short covering was seen among Banking and Capital Goods stocks whereas some long buildup was seen in Infrastructure stocks.

On option front, put writing was seen at multiple strikes and maximum positions are at 23500 CE followed by 23000 CE while the maximum put positions are at 21500 followed by 22500 PE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 4671 Cr in the cash segment, bought stocks futures worth Rs 9550 Cr and also bought index futures worth Rs 7216 Cr.  DIIs too were net buyer in the cash segment to the tune of Rs 147 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22200-23300; Supports 22800-22700

Banknifty – Resistances 49050-49400; Supports 48500-48200

Finnifty – Resistances 21900-21950; Supports 21600-21500

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

Important Results Today– AFFLE, ASHOKLEY, BOSCHLTD, CENTURYPLY, EASEMYTRIP, GLENMARK, HINDALCO, MANAPPURAM, NTPC, SUNTV, ZEEMEDIA.

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