Nifty Overview & Outlook

The Nifty benchmark index recorded its fourth consecutive session of decline on the monthly expiry day. Starting with a downward gap, Nifty managed to fill the gap but reversed to finish nearly one percent lower. Meanwhile, Bank Nifty also commenced with a gap-down but swiftly rebounded, ultimately closing slightly up by 0.4%.

In the broader market, the Smallcap index ended in line with the benchmark, while Midcap stocks slightly underperformed, experiencing a 1.2% drop.

Sector-wise, Nifty Metal heavily dragged market sentiments, witnessing a 3% decline, followed by Nifty IT as the second major loser with losses of 2.2%. However, Nifty Bank, particularly driven by Private Banks, and Nifty Media, closed positively.

Nifty’s reversed downwards after hitting resistance at the upper trendline of its upward slopping channel pattern, marking its fourth consecutive loss. Amidst volatility, Nifty found support near the 50% retracement level of its previous upward rally from 21821 to 23110. Additionally, it found support at the lower trendline of the channel pattern, with key levels identified at 22460-22430 as immediate support, followed by 22310 as the subsequent support. On the upside, resistance levels are seen at 22580 and 22680 following any bounce-back.

Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Midcap Nifty futures with decrease in open interest by 14.2% and 5.8% respectively, whereas some short buildup was seen in Finnifty futures with increase in open interest by around 31%. Banknifty remained almost unchanged on the price front and added around 12% of open interest.

Nifty futures rolled 71% of open interest into next contract which was higher than the previous month rollovers of 65%.

On options front, call writing was seen in multiple strikes and maximum positions are at 24000 CE closely followed by 23000 CE and 21000 PE followed by 22000 PE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3050 Cr in the cash segment, sold stocks futures and index futures worth Rs 8443 Cr and Rs 7925 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 3433 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22720-22800; Supports 22580-22500

Banknifty – Resistances 49600-49800; Supports 48800-48700

Finnifty – Resistances 21920-22000; Supports 21720-21620

F&O Securities in Ban Today – ABFRL,GMRINFRA, HINDCOPPER, IDEA.

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