Nifty Overview & Outlook

The benchmark Nifty index closed on a positive note, settled above 18800 levels after adding 61 points to its previous closing values after highly volatile trading session.

Broader market performed in line with the benchmark as Mid & Small cap index were up over 0.50% each. The market breadth was skewed in favor of bulls as nearly 1.5 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled in green. Nifty Auto, IT, Metal, and Realty Index settled higher in range 0.49% to 0.78% each. On the other hand, Nifty Media and Healthcare index witnessed some selling pressure, down 1.26% and 0.26% respectivly.

Going ahead, we reiterate our bullish view on the Nifty and suggest traders to maintain buy on dips trading strategy till it is holding above 18400 levels on 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 18800-18740

Banknifty – Resistances 44150-44550; Supports 43650-42400

Finnifty – Resistances 19600-19660; Supports 19400-19300

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