Nifty Overview & Outlook

The benchmark Nifty index opened with a gap up on the higher side, kept the bullish momentum rolling throughout the session and settled at 18826 levels after adding nearly 150 points to its previous closing values.

Broader market performed in line with the benchmark as Mid & Small cap indexes were up nearly 1% each. The market breadth was skewed in favor of bulls as nearly 2 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, PSU Bank index was at the top of the tally, up nearly 1.5% followed by Nifty Bank, Financial Services and Media index that rose over 1% each.

Technically, Nifty witnessed a breakout from the congestion zone (18480-18750 levels) of last 2 weeks. Going ahead, we reiterate our bullish view on the Nifty index as we expect it to test 18900 and higher levels in immediate near term.

Derivatives Overview & Outlook

On Friday, Nifty futures added around 4% of open interest as long buildup whereas Banknifty and Finnfity futures shed around 5% & 1% of open interest respectively as short covering.

Majority of F&O sectors settled higher. Amongst them, IT, Finance and Auto stocks witnessed maximum addition of long positions whereas some short covering was seen among Realty and Chemical stocks.

On options front, put writing was seen at multiple strikes along with call at 19000 and higher strikes and maximum positions are at 18700 PE and 18800 CE.

Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 6991 Cr in the cash segment, bought stocks futures worth Rs 1295 Cr and also bought index futures worth Rs 2777 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 1319 Cr during the week.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18830-18750

Banknifty – Resistances 44350-44550; Supports 43750-42500

Finnifty – Resistances 19600-19660; Supports 19400-19300

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