Market Updates-

1. FII and DII Activity – Bearish Sentiment Prevails

Today’s market saw foreign institutional investors (FII) maintaining a bearish stance. FIIs sold a total of ₹3,560 crore across various segments, signaling caution in the market. Here's a quick breakdown of their activity:

• Index Futures: FIIs sold ₹1,373 crore, indicating a bearish outlook on the broader market.

• Stock Futures: FIIs sold ₹5,171 crore, further reflecting their lack of confidence in individual stocks.

• Options: A massive sell-off in options with ₹49,511 crore in net selling, pointing to a significant risk-off sentiment in the market.

• On the flip side, domestic institutional investors (DII) continued to support the market with ₹2,646 crore worth of buying, which helped cushion some of the selling pressure.

2. Nifty’s Technical Setup – Resistance and Key Levels

Despite the heavy selling by FIIs, Nifty 50 managed to stay above its key moving averages. Notably, the 20-day Exponential Moving Average (EMA) has crossed above the 100-day EMA, which is generally considered a positive technical signal. However, the index faces significant resistance levels:

• Key Resistance: Nifty has repeatedly rejected the 24,700 level, making it a strong resistance zone. A breakthrough above 24,700 could pave the way for a move towards the 24,900-25,000 zone.

• Support Levels: The 24,500 level holds strong as immediate support, with the 24,000 mark acting as a critical lower support. Should Nifty break below 24,500, it may dip towards 24,350–24,300.

3. Options Data Insights – Focus on Key Strikes

Options data further confirms the crucial levels to watch:

• On the call side, the highest open interest is at 25,500, followed by 25,000 and 24,600 strikes. These levels represent strong resistance zones.

• On the put side, maximum open interest is seen at 24,000, followed by 24,600 and 24,500 strikes. This indicates significant support at these levels.

4. Market Sentiment – A Range-Bound Outlook

Given the current market dynamics and options data, experts suggest that the Nifty index is likely to remain in a range-bound trade between 24,000 and 25,000 for the near term. The market’s next major move will depend on whether it breaks through the crucial 24,500 support or if it manages to surpass the 24,700 resistance.

5. What’s Next for the Market?

• Support: The immediate support zone for Nifty lies between 24,500 and 24,000.

• Resistance: The key resistance levels to watch are at 24,600 and 25,000.

• Bearish Outlook: If Nifty falls below 24,500, it may head towards the 24,350–24,300 region.

• Bullish Outlook: A strong rally above 24,700 could propel Nifty towards 24,900–25,000.

Conclusion:

The market continues to face selling pressure from FIIs, particularly in index futures and options, which suggests a cautious stance. However, domestic buying from DIIs and the positive technical indicators from the moving averages provide some support.

As we continue to monitor these levels, staying range-bound between 24,000–25,000 seems to be the likely scenario unless there is a significant breakout.

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