India equity trade setup for September 14, 2020

Nifty which ended higher last week has an open gap at 11,508 and 11,289 while Bank Nifty has open gaps at 23,451 and 22,080.

Mumbai: Nifty ended last week in positive territory, up by 1 percent, amid heightened volatility with an open gap at 11,508 and 11,289. Nifty Bank index, which tracks banking stocks, managed to decline for a second straight week and also underperformed benchmark Nifty for ten days in a row. The banking gauge has open gaps at 23,451 and 22,080. Nasdaq posted its worst weekly performance since 20 March, 2020.

 Nifty Small & Midcap indices too declined for two weeks in a row and posted their biggest weekly underperformance since 5 July, 2020 and 29 March, 2020 respectively. However, the midcap index snapped its four-day underperformance on Friday.

Among other sectors – Nifty IT posted the best week since 2 August 2020, Nifty Energy snapped its two-week losing streak to end as the best sector for the week while Nifty Metal extended its decline to 3 weeks in a row and posted the worst week since 14 June 2020. Nifty Realty, Auto, PSU Bank & Media indices extended their decline to 2 weeks in a row. On the other hand, Nifty Infra & FMCG snapped their two-week losing streak.

Foreign investors bought Indian equities worth Rs 1,176 crore in the cash segment on a provisional basis and bought Rs 335 crore in the futures & options market. The net long exposure in index futures remained unchanged at 58 percent as compared to the previous day. That’s in line with the September average of 58 percent. Domestic institutions sold Indian equities worth Rs 724 crore in the cash market