Nifty Overview & Outlook

The benchmark nifty index extended losses for second consecutive day and settled at 18182 levels, down 105 points from its previous closing values.

The Small cap index outperformed the benchmark as it was up 0.53% while Midcap index settled on a flat note; resultant, market breadth was flat.

Majority of sectoral indices tracked at NSE settled lower. Amongst them, Nifty Media was the worst performer down over 2% followed by Realty and IT indices that were down in range 1.33% & 0.97% respectively.

Going ahead, Nifty managed to hold above 18150 support levels, as mentioned in the previous post.  The immediate resistance for a Nifty is placed around 18400 levels and support is still around 18150 levels. Our bullish view is still intact until it is holding above the said support levels.

Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures shed around 1%, 5% and 23% of open interest respectively as long unwinding.

On sectoral front, short buildup was seen among Media, Metal and Telecom stocks whereas some long buildup was seen among Auto and Cement stocks.

On options front, Nifty (18 May contract) call writing was seen at multiple strikes and it has maximum positions at 18000 PE and 18400 CE. Banknifty (18 May contract) has maximum positions at 43500 PE and 44000 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 149 Cr in the cash segment, sold stocks futures worth Rs 1756 Cr and also sold index futures worth Rs 530 Cr. DIIs were net sellers in the cash segment to the tune of Rs 204 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18325-18400; Supports 18100-18000

Banknifty – Resistances 44000-44250; Supports 43450-43250

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