Nifty Overview & Outlook

The benchmark Nifty index continued its sideways move for yet another session and closed on a positive note after adding 46 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were up 0.73 & 0.5% respectively. The market breadth was skewed in the favor of bulls as nearly 2 advances were recorded for every declining share at NSE.

All the sectoral indices, barring Nifty Oil & Gas and IT index, tracked at NSE settled in green. Amongst them, Nifty Realty and Metal led the rally, rose over 1% followed by PSU Bank, Auto and Media indices that were up nearly 1% each.

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 18200 levels on a closing basis.

Derivatives Overview & Outlook

On Friday, Nifty, Banknifty and Finnifty futures added around 3%, 2% and 16% of open interest respectively as long buildup.

Majority of F&O sectors settled higher. Amongst them, Realty, Textile, Chemicals and Pharma stocks witnessed maximum addition of long positions whereas some short buildup was seen among Oil & Gas stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18600 strikes and maximum positions are at 18500 PE and 18600 CE.

Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 10561 Cr in the cash segment, bought stocks futures worth Rs 1457 Cr and sold index futures worth Rs 3655 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1043 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18740-18800; Supports 18550-18480

Banknifty – Resistances 44300-44550; Supports 43850-43600

Finnifty – Resistances 19550-19625; Supports 19390-19300

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