Despite a mid-week plunge, the Nifty 500 shows cautious optimism with 61% of Nifty 500 stocks closing above their respective 10-day SMA, according to reports from The Financial Express. While the index's inability to clear recent peaks raises some caution, this represents the highest level achieved last week, indicating strong risk appetite among investors. Among sector-specific indices, media, auto and financial services indices are trading below their respective 10-day SMAs but not by large distances to be of concern.
Foreign Institutional Investors (FIIs) increased their long positions in the index future segment to 34,427 contracts, with a 15% week-on-week rise thanks to a 9% jump in long positions on Friday, as reported by The Financial Express. Short positions also declined during the period, easing 2.88% to 289,138 contracts. However, bearish exposure remains relatively high, with total short positions still around 3% higher compared with the previous week. The long-short ratio of FIIs in the index future segment stands at 10.6, below both the 30-day mean and 90-day mean of 11.3 and 14.01 respectively.
The Nifty Realty Index has delivered a strong breakout from a prolonged consolidation phase on both daily and weekly charts, reinforcing its broader uptrend, according to analysis from The Financial Express. The index's momentum indicators continue to support the positive outlook, with the weekly RSI comfortably holding above the 60 level, reflecting healthy trend strength. Derivatives activity aligns with the bullish technical setup, with nearly 80% of near out-of-the-money Put strikes witnessing fresh short build-up while a similar proportion of near OTM Call strikes saw long additions. Close to 60% of realty stocks registered short covering on a week-on-week basis, indicating market participants are reducing bearish positions.
The Nifty PSE Index is showing encouraging indications of potential bottom formation, as reported by The Financial Express. The index has retraced towards the lower boundary of its rising channel and is attempting to establish stability above the important support region of 9,750-9,800. The weekly RSI has declined toward the 45 mark but continues to hold above previous swing lows, suggesting that downside momentum is gradually losing strength. While the MACD histogram remains in negative territory, it has begun to flatten, indicating that selling pressure is easing and bearish momentum is fading.
The combination of technical breakouts and supportive derivatives activity points to continued outperformance from both the realty and PSE sectors. As long as the breakout zones remain intact, the Nifty Realty Index appears well positioned to advance towards its near-term upside targets of 960 and 1,000 over the coming weeks. For Nifty PSE, a decisive breakout above the 10,100-10,200 resistance band would strengthen the case for a bullish reversal and could open the path for a move towards 10,700.
