Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18534 levels, down 100 points from its previous closing values.

Broader markets outperformed the benchmark as Small cap and Mid cap index were up over 1% & 0.35% respectively against a 0.53% decline in a frontline index.

Performance on the sectoral front was mix. Amongst them, Realty, Consumer Durable and Healthcare index were the top performers, rose 0.75% each. On the other hand, Oil & Gas, Metals and Financial Service index led the declines, settled lower in range of 0.75% to 1.26%.

Going ahead, we reiterate our bullish view on the Nifty and suggest traders to maintain buy on dips trading strategy till it is holding above 18200 levels on closing basis.

Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 5% of open interest as long unwinding, Banknifty futures remained almost unchanged on open interest front and Finnifty futures added around 3% of open interest as short positions.

On sectoral front, long buildup was seen among Telecom, Capital Goods and Pharma stocks while some short buildup was seen among Metals stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18500 PE and 18600 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 3406 Cr in the cash segment, sold stocks futures worth Rs 2114 Cr and also sold index futures worth Rs 2027 Cr. DIIs were net sellers in the cash segment to the tune of Rs 2529 Cr.

Nifty Futures, Banknifty Futures & Finnifty Futures Key Levels

Nifty – Resistances 18700-18750; Supports 18560-18480

Banknifty – Resistances 44425-44700; Supports 43980-43750

Finnifty – Resistances 19625-19700; Supports 19430-19350

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