Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18688 levels, down 68 points from its previous closing values.

Mid & Small cap index outperformed the benchmark as Small cap index settled on positive note while mid cap index fell just 0.17% against 0.36% decline in frontline index.

Performance on the sectoral front was mix. Amongst them, PSU Bank index was the worst performer, fell 2%, followed by Pvt Bank, Banknifty and Media index that were down over 1% each. On the other hand, Nifty Healthcare and Pharma index led the greens, rose nearly 1.50% each.

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 18400 levels on closing basis. On the other hand, Banknifty index is showing signs of weakness, sustenance below 43400 will open the doors for 43000 levels in immediate near term.

Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures added around 3% & 4% of open interest respectively as short positions while Finnifty futures shed around 11% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Banking and Chemical stocks witnessed maximum addition of short positions whereas some long buildup was seen among Pharma stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18700 PE and 18700 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 3086 Cr in the cash segment, sold stocks futures worth Rs 1441 Cr and also sold index futures worth Rs 746 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 298 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18870; Supports 18660-18580

Banknifty – Resistances 43860-44050; Supports 43200-42900

Finnifty – Resistances 19350-19450; Supports 19180-19100

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