Nifty Overview & Outlook

The benchmark nifty index extended losses for the second consecutive session and settled below 18500 levels, down 47 points from its previous closing values after highly volatile trading session.

Mid and Small cap index outperformed the benchmark, up 0.21% & 1% respectively; resultant, market breadth was slightly tilted towards the advancing side.

Performance on the sectoral front was mix. Nifty Pharma and Realty were the top performers, rose over 1% each. On the other hand, Nifty Bank and Financial Services index witnessed some selling pressure, down 0.77 & 0.63% respectively.

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

Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 4% of open interest as long unwinding; Banknifty & Finnifty futures added around 4% & 9% of open interest respectively as short positions.

On sectoral front, short buildup was seen among Metals and Chemical stocks whereas some short covering was seen among Telecom and Realty stocks along with long buildup among Cement stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18500 PE and 19500 CE closely followed by 18600 CE. Banknifty futures will start the new contract with maximum positions at 43000 PE and 44000 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 71 Cr in the cash segment, bought stocks futures worth Rs 446 Cr and also bought index futures worth Rs 2183 Cr. DIIs were net buyers in the cash segment to the tune of Rs 489 Cr.

Nifty Futures, Banknifty Futures & Finnifty Futures Key Levels

Nifty – Resistances 18650-18750; Supports 18500-18400

Banknifty – Resistances 44300-44500; Supports 43750-43450

Finnifty – Resistances 19500-19600; Supports 19350-19260

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