Nifty Overview & Outlook

The Nifty benchmark index experienced significant volatility on the final trading day of May 2024. Although it began positively, it encountered intraday swings before ultimately closing flat to positive. On the contrary, Bank Nifty also saw volatility but sustained its momentum, surpassing the benchmark with a 0.6% gain.

On the broader market front, both Midcap and Smallcap indices slightly underperfomed, with Midcap ending flat and Smallcap declining by 0.2%.

Sector-wise performance revealed Nifty Realty as the top performer, surging by 2.3%. Nifty Metal rebounded from its previous losses, claiming the second spot with a 1.9% rise. Across the BFSI sector, all indices closed positively. However, Nifty Media and Nifty IT dragged down, each witnessing a decline of nearly 1.3%.

Considering the daily timeframe, Nifty concluded Friday’s session consolidating within the support range of 22460-22430, as previously noted. Thereby, our outlook maintains 22310 as the subsequent support level once this zone is breached. Conversely, if there’s a rebound, we anticipate resistance at 22680 and 22765 following a breach above 22580, as attempted during the session.

Derivatives Overview & Outlook

Yesterday, Banknifty, Finnifty and Midcap nifty futures rose on short covering as all three major indices shed around 6.5%, 10.6% and 4.5% of open interest respectively. On the other hand, long buildup was seen in Nifty futures with increase in open interest by 8.3%.

On the sectoral front, long buildup was seen among Cement, Metal and Telecom stocks whereas some short buildup was seen in Automobile and FMCG stocks and no meaningful activity was seen rest of sectors on price as well as on open interest front.

On options front, call writing was seen in multiple strikes and maximum positions are at 23000 CE closely followed by 23500 CE and 22000 PE followed by 22500 PE.

Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 989 Cr in the cash segment, sold index futures worth Rs 6132 Cr and bought stocks futures worth Rs 11,295 Cr. DIIs were net buyer in the cash segment to the tune of Rs 14,936 Cr during the week.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22800-22880; Supports 22600-22550

Banknifty – Resistances 49500-49700; Supports 49100-49000

Finnifty – Resistances 22000-22080; Supports 21800-21720

F&O Securities in Ban Today – NIL

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