Nifty Overview & Outlook

The benchmark Nifty index settled on a flat to a positive note, closed shop at 18857 levels after adding 40 points to its previous closing values.

Mid cap index outperformed the benchmark as it’s up by 0.75% while Small cap index settled on a flat to positive note; resultant, market breadth was almost flat.

Performance on the sectoral front was mix. Amongst them, Financial Service and Media Index were at the top of the tally, rose 0.68% & 0.55% respectively. On the other hand, Metal and FMCG index led the decline, fell 0.94% & 0.44% respectively.

Going ahead, we reiterate our bullish view on the Nifty index and suggest traders to maintain buy on dips trading strategy till it is holding above 18400 levels on a closing basis.

Derivatives Overview & Outlook

Yeterday, Nifty and Banknifty futures remained almost unchanged on price as well as on open interest front whereas Finnfity futures added around 15% of open interest as long buildup.

On sectoral front, long buildup was seen among Telecom, Media, Chemicals, Oil & Gas and Auto stocks whereas some short buildup was seen among Textile and Metal stocks.

On options front, call writing was seen at multiple strikes along with put writing at multiple strikes and maximum positions are at 18800 PE and 19000 CE closely followed by 18900 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 4013 Cr in the cash segment, sold stocks futures worth Rs 818 Cr and bought index futures worth Rs 212 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 550 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18820-18750

Banknifty – Resistances 44300-44550; Supports 43750-42500

Finnifty – Resistances 19700-19800; Supports 19550-19450

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