Nifty Overview & Outlook

The Indian benchmark index started the day with little upbeat and saw subdued trading throughout, ending the session unchanged amidst a tug-of-war among leading stocks. The Bank Nifty underperformed, closing lower by almost half a percent.

In the broader market, Smallcap stocks slightly outperformed, gaining 0.2%, while Midcap stocks saw a minor decline of 0.1%.

Sector-wise, the FMCG index provided some support to the market with a solid gain of 1.6%, followed by the Energy index which edged up by 0.3%, driven primarily by an 0.8% increase in Reliance Industries’ stock price. On the flip side, the PSU Banking index fell sharply by 1.6%, and the Nifty Metal index closed 0.9% lower. Most other sectors ended the day in negative territory. Market breadth within the Nifty 500 index was notably negative, with 181 stocks advancing and 316 declining.

Technically, the Nifty opened and closed the day without significant movement, exhibiting intraday volatility within a narrow range. Overall, the index showed consolidation on the daily chart. Resistance levels are identified at 24,470 and 24,750, while support levels are at 24,152 and 23,875, maintaining our current outlook.

Derivatives Overview & Outlook

Yesterday, no significant change was seen in Nifty and Banknifty futures on price as well as on open interest front, whereas Finnifty and Midcap Nifty futures shed around 12% and 1.2% of open interest respectively as long unwinding.

All F&O sectors, barring FMCG and Oil & Gas index, settled lower. Amongst them, Chemical and Infrastructure stocks witnessed maximum addition of short positions whereas long unwinding was seen in Telecom stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 24000 PE closely followed by 24200 PE and 25000 CE closely followed by 24500 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 61 Cr in the cash segment, sold stocks futures worth Rs 3760 Cr and also sold index futures worth Rs 473 Cr. DIIs were net buyer in the cash segment to the tune of Rs 2867 Cr.

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 24400-24450; Supports 24320-24280

Banknifty – Resistances 52800-53080; Supports 52350-52200

Finnifty – Resistances 23750-23820; Supports 23500-23400

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