Nifty Overview & Outlook

The Indian benchmark index Nifty achieved an all-time high, closing above the significant 23700 mark. This surge was driven by the news of India recording a Current Account Surplus in Q4FY2024, recording the first surplus in the last 10 quarters.

Nifty opened slightly higher with a gap and consolidated during the first half of the session. However, a sudden upward movement in all Banking and Financial indices pulled Nifty upwards to close above the 23700 level. Nifty rose by 0.8%, while Bank Nifty showed stronger performance with a gain of 1.8%, fueled by strong performances from banking giants such as Axis Bank, ICICI Bank, and HDFC Bank.

In the broader market, the Midcap index underperformed with a loss of 0.3%, while the Smallcap index gained 0.2% compared to the benchmark.

Sector-wise, Nifty Financial Services led the gains with a surge of 2%. Nifty Bank and Nifty Private Banks followed suit with gains of 1.7% each. Conversely, Nifty Realty was the biggest loser with a decline of 1.8%, followed by Nifty Metal with a 0.7% drop. Overall, the market breadth of Nifty 500 remained slightly negative with 208 advances and 290 declines.

Technically, Nifty closed above the 23700 mark, signaling a breakout from consolidation with a solid green candle. The next immediate resistance is seen at 23915, while support levels for potential profit booking are at 23550 and 23350.

Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures added around 5.4%, 18.7% and 23% of open interest respectively as long buildup. On the other hand, no significant changes was seen in Mid cap nifty futures on price as well as on open interest front.

Finnifty futures rolled 41% of open interest into next contract. Nifty and Banknifty futures have rolled 45% & 55% of open interest into next contracts so far.

On option front, put writing was seen at multiple strikes and maximum call positions are at 24000 CE while the maximum put positions are at 23000 PE followed by 23500 PE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1176 Cr in the cash segment, bought stocks futures worth Rs 1118 Cr and also bought index futures worth Rs 2699 Cr. DIIs were net seller in the cash segment to the tune of Rs 149 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23850-24000; Supports 23600-23500

Banknifty – Resistances 52800-53000; Supports 52000-51600

Finnifty – Resistances 23600-23700; Supports 23200-23050

F&O Securities in Ban Today – GNFC, INDUSTOWER, PNB, SAIL.

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