Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side and once again settled at new record highs i.e. 19322 levels after adding 133 points to its previous closing values.

Small cap index outperformed the broader market as it was up by 1.23% while Mid Cap index ended on a flat to positive note. Market breadth was almost flat.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, PSU Bank index led the rally, up over 3.5% followed by Nifty Oil & Gas, FMCG and Metal index that gained over 1% to 2% each. On the other hand, Nifty Pharma, IT and Healthcare Index witnessed some selling pressure, down 0.47% to 1.11% respectively.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 18750 levels on a closing basis and expected it to test 19500 and higher levels in the near term. Hence, traders should continue to follow buy on dip trading strategy.

Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures added around 4% to 13% of open interest each as long buildup.

On sectoral front, long buildup was seen among Oil & Gas, Media and Banking stocks whereas some short buildup was seen among IT and Textile stocks.

On options front, put writing was seem at multiple strikes and maximum positions are at 19300 PE and 19500 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1996 Cr in the cash segment, bought stocks futures worth Rs 229 Cr and also bought index futures worth Rs 434 Cr. DIIs were net sellers in the cash segment to the tune of Rs 338 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19500-19600; Supports 19300-19150

Banknifty – Resistances 45450-45700; Supports 44900-44650

Finnifty – Resistances 20400-20500; Supports 20150-20000

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