Nifty Ends Higher Despite Late Profit Booking; Banking Stocks Support Market
The Indian stock market ended slightly higher after a volatile trading session. The Nifty opened on a flat note and gradually moved upward during the first half of the day. However, profit booking near the 23,835 level in the later session pulled the index down toward 23,700. Despite the pressure, the market managed to close in the green with a gain of around 0.27%.
Banking Stocks Lead the Market
Banking and financial stocks remained the biggest support for the market and were among the top-performing sectors of the day. On the other hand, healthcare and media stocks witnessed weakness and underperformed during the session.
FIIs Continue Selling, DIIs Stay Positive
Foreign Institutional Investors (FIIs) remained net sellers and sold shares worth nearly ₹4,440 crore. Meanwhile, Domestic Institutional Investors (DIIs) continued buying and invested around ₹6,003 crore in the market, helping indices stay positive.
Options Data Signals Mild Bullish Sentiment
According to options market data, the highest Call Open Interest was seen at the 24,000 level, which may act as a resistance zone for Nifty. On the downside, strong Put Open Interest at 23,500 indicates support for the market.
The Put-Call Ratio (PCR) stood at 1.02, suggesting a balanced to slightly bullish market sentiment. Market experts also observed higher Call unwinding compared to Put unwinding, indicating that traders are still expecting some upward momentum.
Key Levels to Watch
- Resistance: 24,000
- Support: 23,500
- Max Pain Level: 23,800
- VWAP Range: 23,580 – 23,940
Market Outlook
Overall, the market sentiment remains cautiously positive. As long as Nifty holds above the 23,500 zone, traders may continue to see buying interest in banking and financial stocks. However, volatility is likely to remain due to ongoing profit booking at higher levels.