Nifty Overview & Outlook

The benchmark Nifty index ended on a flattish note at 18599 levels after adding just 5 points to its previous closing values after the lackluster trading session.

Small cap index outperformed the benchmark as it’s up 0.5% against the flat closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Auto and Realty were the top performers, rose over 1% each followed by Pharma that was up 0.61%. On the other hand, Nifty IT led the declines, down nearly 2%.

Nifty index is well placed on multiple chart frames till it is holding above 18200 levels on closing basis. Hence, we suggest traders maintain buy on dips trading strategy.

Derivatives Overview & Outlook

Yesterday, no significant activity was seen among Nifty, Banknifty and Finnifty futures on the price front whereas on open interest front Nifty futures shed around 3% of open interest and Finnifty futures added around 15% of open interest.

On sectoral front, long buildup was seen among Realty and Cement stocks whereas some short buildup was seen among IT and Power stocks.

On options front, put writing was seen at 18550 strike along with call writing at 18750 strikes and maximum positions are at 18500 PE and 18600 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 386 Cr in the cash segment, bought stocks futures worth Rs 557 Cr and sold index futures worth Rs 920 Cr. DIIs were net sellers in the cash segment to the tune of Rs 489 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18730-18800; Supports 18600-18540

Banknifty – Resistances 44550-44750; Supports 44100-43800

Finnifty – Resistances 19600-19665; Supports 19450-19380

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