Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18771 levels, down 85 points from its previous closing values after the highly volatile trading session.

Broader market underperformed the benchmark as Small-cap and Mid-Cap index were down 0.76% to 1.21% respectively. The market breadth was inclined towards the sellers as over 1.5 declines were recorded for every advancing share at NSE.

All the sectoral indices, barring Nifty Media and Metal, tracked at NSE settled in red. Amongst them, PSU Bank index was the worst performer, fell over 1.5%, followed by Nifty Realty, IT, FMCG, Oil & Gas index that were down around 1% each.

Technically, Nifty index is facing resistance around its all time highs i.e. 19887 levels. Going ahead, we uphold our bullish view on Nifty index till it is holding above the 18500 levels on closing basis; however possibility of some profit taking can’t be ruled out at this juncture. Hence, we suggest traders to maintain stock specific trading approach and avoid over leveraging.

Derivatives Overview & Outlook

Yeterday, Nifty futures added around 7.5% of open interest as short positions, Banknifty futures shed around 5% of open interest as long unwinding while Finnfity futures remained almost unchanged on the price front and shed 6% of open interest.

All F&O sectors settled lower. Amongst them, Banking, Chemicals and Oil & Gas stocks witnessed maximum addition of short positions whereas most of the sectors fell on long unwinding.

On options front, Nifty will start the final weekly expiry of June contract with maximum positions at 18800 PE and 18800 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 698 Cr in the cash segment, sold stocks futures worth Rs 2517 Cr and bought index futures worth Rs 325 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 219 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18885-18960; Supports 18780-18700

Banknifty – Resistances 44100-44300; Supports 43600-42400

Finnifty – Resistances 19700-19800; Supports 19550-19460

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