Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side but failed to hold at the higher levels and ended on a flat note at 19749 levels with marginal gains of 37 points after highly volatile trading session.

Broader market underperformed the benchmark as Midcap index settled on a flat to negative note while Small cap index fell nearly 1%; resultant, weak market breadth.

Majority of sectoral indices tracked at NSE settled lower. Amongst them, Nifty Media index was at the bottom of the tally fell nearly 2% followed by PSU Bank, Metal and Realty index that were down in range 0.83% to 1.84%. On the other hand, Nifty IT witnessed some buying interest, rose over 1%.

Nifty index is still well placed on multiple time frames, however, possibility of some profit taking can’t be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading strategy till index is holding above 19400 levels on closing basis.

Derivatives Overview & Outlook

Yesterday, no major changes were observed on price front in all three major index futures. On open interest front, Nifty and Banknifty futures shed around 1% & 10% of open interest respectively whereas Finnifty futures added by 9% of open interest.

On the sectoral front, fresh long buildup was observed in Capital Goods and Technology shares whereas short buildup was observed in Cement, Media, Banking, Textile and Telecom stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19600 PE and 20000 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2116 Cr in the cash segment, bought index future of Rs 501 Cr and sold stocks futures of Rs 545 Cr. DIIs were net seller in the cash segment to the tune of Rs 1318 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19820-19880; Supports 19610-19530

Banknifty – Resistances 45800-45980; Supports 44960-44800

Finnifty – Resistances 20440-20560; Supports 20015-19900

Important Results Today: CANFINHOME, CENTURYTEX, L&TFH, TATA COFFEE, TATACOMM

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