How Did Nifty Maintain Its Uptrend as Midcaps Outperformed on October 16?
After a positive start, Nifty sustained its upward momentum throughout the session and closed higher by 0.71 percent. The Nifty Midcap 100 index outperformed the broader market, advancing by 1.11 percent, supported by strength in select PSU and realty counters.
Sector-wise, Realty and PSU Banks led the rally, while Media and Pharma stocks remained subdued. The broader sentiment stayed positive as midcaps extended leadership into the second consecutive session, reflecting rotational buying from institutional investors.
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On the institutional front, both FIIs and DIIs were net buyers. FIIs purchased ₹68.64 crore worth of equities, while DIIs added a substantial ₹4,650.08 crore, indicating strong domestic support. This broad-based buying underpinned the market’s resilience amid global volatility.
In the derivatives segment, FIIs maintained a positive stance with net long positions in index futures — Nifty at 4,716 contracts and Bank Nifty at 629 contracts. This data indicates optimism across key indices ahead of weekly expiry.
Options data revealed significant open interest build-up at the 25,500 Call and 25,300 Put strikes, suggesting a near-term support base at 25,300. The Put-Call Ratio (PCR) at 1.24 reinforces a bullish undertone, with higher Put writing versus Call writing activity.
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The VWAP range between 25,215 and 25,445 highlights a well-defined trading zone for the next session. With a Max Pain point at 25,300, market participants can expect continued consolidation with a bullish bias as long as this support zone holds firm.
Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that continued institutional buying and strong midcap traction could support further upside. A decisive move above 25,500 may open the next leg toward higher resistance zones.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
