Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, remained sideways throughout the session and closed at 18594 levels after adding 59 points to its previous closing values.

Broader markets performed in line with the benchmark as Mid and Small-cap index ended on a flat to a positive note; resultant, market breadth was flat at NSE.

Performance on the sectoral front was mix. Nifty Auto was the top performer, rose over 1% followed by Media and Pvt Bank which was up 0.88 & 0.68% respectively. On the other hand, Nifty FMCG and PSU Bank index witnessed some selling pressure, down nearly 0.5% each.

Going ahead, we reiterate our bullish view on the Nifty index and suggest traders maintain buy on dips trading strategy till it is holding above 18200 levels on a closing basis.

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on price as well as on open interest front, Banknifty futures added around 4% of open interest as long buildup and Finnifty futures shed around 18% of open interest as short covering.

Majority of F&O sectors settled higher. Amongst them, Media and Cement stocks witnessed maximum addition of long positions whereas some short buildup was seen among IT stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18700 strikes and maximum positions are at 18500 PE and 18600 CE.

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 701 Cr in the cash segment, bought stocks futures worth Rs 1388 Cr and bought index futures worth Rs 746 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1196 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18740-18800; Supports 18600-18540

Banknifty – Resistances 44550-44750; Supports 44000-437500

Finnifty – Resistances 19600-19665; Supports 19440-19360

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