Several participants at the Federal Reserve’s September policy meeting said it was important to continue monitoring money-market conditions and evaluate how close bank reserves are to their “ample” level, as the central bank continues to unwind its massive portfolio of securities.
The remarks come as prolonged funding pressures in US money markets, just as bank reserves held at the Fed are dwindling, are suggesting the central bank may be getting closer to ending its balance sheet runoff.
Global Stock Market Today
Benchmark Nifty index settled on a slightly negative note at 25046 spot levels after a cut of 62 points from its previous closing values.
Broader markets underperformed the benchmark as Mid and Small cap index were down 0.43% & 0.53% respectively.
Majority of sectoral indices, barring, Nifty IT and Consumer Durables, settled in red. Amongst them, Auto, Media and Realty index were the worst performers, down in range 1.5% to 1.85%. On the flip side, IT and Consumer Durables rose 1.51% & 0.71% respectively.
Nifty index witnessed some profit taking from its price resistance of 25200 spot levels. Current chart patterns are well positions till it is trading above 24900 spot levels on closing basis. Hence, we maintain buy on dips trading approach with cautiously bullish stance till it is holding strong above the said levels and expect it to retest 25200 spot levels in near term.
Derivatives Overview & Outlook
Yesterday, Finnifty and Midcapnifty futures added around 1.5% of open interest each as short buildup along with some long unwinding among Nifty and Banknifty futures that shed 1.4% and 3.5% of open interest respectively.
All F&O sectors, barring Technology, settled lower. Amongst them, Capital Goods and Infrastructure stocks witnessed maximum addition of short positions while some long buildup was seen in Technology stocks.
On options front, call writing was seen at multiple strikes along with some put addition at OTM strikes. Maximum put positions are at 25000 PE followed by 24000 PE and maximum call positions are at 25200 CE followed by 26000 CE.
Institutional Trading Activity
Yesterday, FIIs bought stocks worth Rs 81 Cr in the cash segment, bought index futures worth Rs 175 Cr and sold stocks futures worth Rs 2440 Cr. DIIs were net buyers in the cash segment to the tune of Rs 330 Cr.
Nifty Futures, Banknifty Futures and Finnifty Futures Key Levels
Nifty – Resistances 25220-25310; Supports 25005-24900
Banknifty – Resistances 56400-56600; Supports 56000-55800
Finnifty – Resistances 26850-27000; Supports 26600-26400
F&O Security in Ban Today: RBLBANK
Disclosure
Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.
AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZ Finstock Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited, Lakshya Impex Private Limited and Launchpad Fintech Private Limited are associates of GCML.
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