Nifty Overview & Outlook

The Nifty benchmark index started off Monday’s trading session on a positive note, surpassing the 23,100 mark to reach yet another all-time high. However, it couldn’t maintain this momentum and eventually closed below the previous close, experiencing marginal losses. Yet, the Bank Nifty refrained Nifty from witnessing further decline by significant uptick in both Indusind Bank and Axis Bank, each climbing by more than a percent.

On a broader market front, both the Midcap and Smallcap sectors outperformed the benchmark index, recording gains of nearly 0.6% each.

In terms of sectors, PSU Banks led the gains with a 1.3% surge, closely followed by Realty and Banks. Conversely, Nifty Media and Nifty Energy were the main laggards, experiencing losses of nearly 1% and 0.9% respectively.

The Nifty’s surge to a new all-time high nearly reached the upper trendline of an upward sloping channel pattern previously discussed in our analyses. Reaching resistance near 23,100, the Nifty reversed, forming a Doji candlestick pattern with confirmation on the hourly chart. Moreover, it almost entirely erased the prior session’s gains. Thereby, if the correction persists, we hold 22,840 and 22,755 as the next immediate support levels. However, if the recent movement is merely a pause for a better upward jerk, we maintain 23,100-23,150 as the resistance zone, followed by 23,240.

Derivatives Overview & Outlook

Yesterday, Banknifty, Finnifty and Midcapnifty futures rose on short covering as all three major indices shed around 9%, 6.5% and 22% of open interest respectively. On the other hand, long unwinding was seen in Nifty futures with decrease in open interest by 2.4%

Mid Cap Nifty futures rolled 74% into next contracts which was inline with previous month rollovers of 76%. Nifty, Banknifty and Finnifty futures have rolled 39%, 36% & 23% of open interest into next contracts so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 23000 PE followed by 22500 & 24000 CE closely followed by 23500 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 541 Cr in the cash segment, bought stocks futures worth Rs 10211 Cr and also bought index futures worth Rs 2599 Cr. DIIs too were net buyer in the cash segment to the tune of Rs 923 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23100-23180; Supports 22900-22800

Banknifty – Resistances 49600-49900; Supports 49000-48800

Finnifty – Resistances 22100-22000; Supports 21800-21700

F&O Securities in Ban Today – BIOCON, GNFC, HINDCOPPER, IDEA, PEL.

Important Results Today– ABFRL, BPCL, EIHOTEL, GICRE, GNFC, IRCTC, MMTC, MTARTECH, RITES, WOCKPHARMA.

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