Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side but failed to sustain at higher levels and settled lower at 22420 levels after a cut of 150 points from its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were up 0.85% and 0.56% respectively against 0.67% decline of frontline index.

Performance on the sectoral front was mix. Nifty Consumer Durables and Media index were at the top of the tally, gained 1.72% and 1.18% respectively followed by Pharma and Realty index that rose over 0.50% each. On the other hand, Banking and Financial pack led the decline, fell over 0.50% each.

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

Last Friday, long unwinding was seen in Nifty and Banknifty futures with decrease in open interest by 7.9% and 4.5% respectively, whereas short buildup was seen in Finnifty futures with increase in open interest by 6.3%.

On sectoral front, long buildup was seen in Media, Technology, Metals, Realty, Automobile and Pharma stocks and short buildup was seen in Finance stocks.

On options front, call writing was seen at multiple strikes along with some put writing at 22200 strike and maximum positions are at 23500 CE closely followed by 22500 CE and 21500 PE closely followed by 22500 PE.

Institutional Trading Activity
Last week, FIIs sold stocks worth Rs 14704 Cr in the cash segment, bought stocks futures worth Rs 14880 Cr and sold index futures worth Rs 5302 Cr. DIIs were net buyer in the cash segment to the tune of Rs 20796 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22680-22750; Supports 22440-22380

Banknifty – Resistances 48620-48950; Supports 48230-48000

Finnifty – Resistances 21500-21625; Supports 21330-21220

F&O Securities in Ban Today – IDEA.

Important Results Today– BSOFT, CANFINHOMES, KPITTECH, PNBHOUSING,POONAWALA. TATACHEM, UCOBANL, ULTRACEMCO.

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