Nifty Overview & Outlook

The benchmark Nifty index settled yet another session at a new record highs i.e. 23869 levels after adding nearly 150 points to its previous closing values.

Broader markets underperformed the benchmark. Mid cap index fell 0.41% and small cap index settled slightly higher after adding just 0.25%; resultant, weak market breadth. This goes to show that the current up move is driven by a handful of large cap stocks.

Performance on the sectoral front was mix. Metal and Realty index were at the bottom of the tally, down nearly 1.5% each. On the other hand, Oil & Gas and Media index were the top gainers, rose 1.60% & 1.39% respectively.

Technically Nifty index is well placed on multiple time frames. However, lack of participation in the ongoing up move is a cause of concern as this kind of divergence generally leads to profit taking. Hence, we suggest traders to adopt a stock specific approach. On levels front, 23400 will act as a important support on the down side and resistance is placed around 24000-24050 levels.

Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by 3.7%, whereas some short covering was observed in Banknifty and Finnifty futures with decrease in open interest by 23.1% and 2.3% respectively.

Banknifty futures rolled 71% of open interest into next contract which was slightly higher than the previous month rollovers of 67%. Nifty have rolled 61% of open interest into next contracts so far.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 23500 PE followed by 23700 PE while maximum call position are at 24000 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3535 Cr in the cash segment, bought stocks futures worth Rs 6486 Cr and also bought index futures worth Rs 2886 Cr. DIIs were net buyer in the cash segment to the tune of Rs 5104 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23920-24000; Supports 23750-23600

Banknifty – Resistances 53000-53200; Supports 52500-52000

Finnifty – Resistances 237500-23900; Supports 23500-23400

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

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