Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, failed to hold at the higher levels and settled lower at 18755 levels after a cut of 70 points from its previous closing values.

Broader markets outperformed the benchmark as Mid & Small Cap index settled on a flat to positive note against 0.37% decline in the frontline index.

Majority of sectoral indices tracked at NSE settled in red. Nifty Pvt Bank, Media, Realty, Auto and FMCG Index were down in range 0.50% to 0.90% each. On the other hand, Nifty PSU Bank was at the top of the tally gained nearly 1%.

Technically, Nifty settled on a weak note and formed a bearish red candlestick on a daily chart. The immediate resistance for Nifty index is placed around 18880 levels and support is around 18400 levels. Our bullish view is intact until it is holding above the said support levels on a closing basis

Derivatives Overview & Outlook

Yeterday, Nifty futures shed around 1% of open interest as long unwinding whereas Banknifty and Finnfity futures added around 1% & 11% of open interest respectively as short buildup.

On sectoral front, short buildup was seen among Infra and Oil & Gas stocks whereas some long buildup was seen among Finance and Pharma stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18700 PE and 19000 CE closely followed by 18800 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1031 Cr in the cash segment, sold stocks futures worth Rs 1883 Cr and also sold index futures worth Rs 1325 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 365 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18750-18680

Banknifty – Resistances 44000-44350; Supports 43550-42350

Finnifty – Resistances 19575-19660; Supports 19400-19300

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