Nifty Overview & Outlook

The benchmark Nifty index ended lower for the second consecutive session and settled at 18665 levels, down over 100 points from its previous closing values after a lackluster trading session.

The Broader market underperformed the benchmark as Midcap and Small cap index were down over 1% each.

All the sectoral indices, barring Nifty Pharma, tracked at NSE settled in red. Amongst them, Nifty Media & Metal lost maximum, down over 2% followed by Nifty PSU Bank, Auto, Consumer Durable and Oil & Gas indices ended over 1% each.

Technically, Nifty index is facing resistance around its all-time highs i.e. 18887 levels. Going ahead, we uphold our bullish view on Nifty index till it is holding above the 18500 levels on a closing basis; however the possibility of some profit-taking can’t be ruled out at this juncture. Hence, we suggest traders to maintain a stock-specific trading approach and avoid over-leveraging.

Derivatives Overview & Outlook

On Friday, Nifty & Finnifty futures shed around 7% & 19% of open interest respectively as long unwinding whereas Banknifty futures added around 4% of open interest as short buildup.

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

On options front, call writing was seen at multiple strikes along with put writing at 18400 strikes and maximum positions are at 18700 PE and 18800 CE.

Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 13731 Cr in the cash segment, sold stocks futures worth Rs 5050 Cr and also sold index futures worth Rs 666 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1693 Cr during the week.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18900; Supports 18600-18500

Banknifty – Resistances 43850-44100; Supports 43500-42300

Finnifty – Resistances 19630-19740; Supports 19460-19350

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