Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the down side due to a big gap down in index heavyweight Kotak Bank, smart recovery backed by other banking stocks help the index to settle near day’s highs i.e. 22570 levels after adding over 250 points to its days lows in a highly volatile trading session.

Broader markets performed in line with the benchmark as Small cap & Mid cap index rose 0.84% & .45% respectively.

All the sectoral indices, barring Consumer Durables and Realty index, tracked at NSE settled higher. Amongst them, Nifty PSU Bank index was the top performer, soared nearly 4% followed by Pharma, Healthcare, Auto and Metal index that settled higher in range 1.11% to 1.57%.

Nifty index is still trading in the same upward sloping channel having immediate resistance around 22800 levels and supports around 22300-22200 zone. Going ahead, Nifty index is likely to trade with positive bias till it is trading above the said support zone and expect it to test 22800 or higher levels in immediate near term.

Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty and Finnifty futures with decrease in open interest by 27.1% and 11.4% respectively, whereas long buildup was seen in Banknifty futures with increase in open interest by 18.5%.

On sectoral front long buildup was seen in Telecom stocks and short buildup was seen in Realty stocks. Short covering was seen in Automobile, Infrastructure, Oil & Gas, Power, Pharma and Textile stocks, where as long unwinding was seen in Cement stocks.

On options front, Nifty will start the new weekly contracts with maximum positions at 23500 CE closely followed by 22900 CE and 21500 PE closely followed by 22500 PE.

Institutional Trading Activity
Yesterday, FIIs sold stocks worth Rs 2823 Cr in the cash segment, bought stocks futures worth Rs 10681 Cr and sold index futures worth Rs 272 Cr. DIIs were net buyer in the cash segment to the tune of Rs 6168 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22710-22820; Supports 22470-22380

Banknifty – Resistances 49060-49310; Supports 48400-48200

Finnifty – Resistances 21650-21720; Supports 21400-21340

F&O Securities in Ban Today – IDEA.

Important Results Today– BAJAJFINSV, HCLTECH, IBREALEST, MAHLIFE, MARUTI, MOTILALOFS, SBICARD, SBILIFE, SHRIRAMFIN.

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