Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18634 levels, down 91 points from its previous closing values after highly volatile trading session.

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

All sectoral indices, barring Metal, settled in red. Amongst them, Nifty Realty and Media led the declines, down over 1.5% each followed by IT and Pharma index that were down in the range over 1% each.

Technically, Nifty index ended on a weak note and formed a bearish red candlestick on a daily chart and re-entered in its previous congestion zone i.e. 18450-18660 levels. Going ahead, Nifty is expected to be sideways until it’s trading in the said congestion zone.

Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures added around 4% & 3% of open interest respectively as short buildup whereas Finnifty futures shed around 13% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Power & Chemical stocks witnessed maximum addition of short positions whereas long unwinding was seen among Auto, Cement and Telecom stocks.

On options front, call writing was seen at 18700 strikes and maximum positions are at 18700 PE and 18700 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 212 Cr in the cash segment, sold stocks futures worth Rs 1094 Cr and also sold index futures worth Rs 442 Cr. DIIs were net sellers in the cash segment to the tune of Rs 405 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18880; Supports 18650-18550

Banknifty – Resistances 44350-44550; Supports 44000-43800

Finnifty – Resistances 19600-19660; Supports 19400-19300

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