1️⃣ FII Activity & Positioning

FIIs bought approximately ₹100 Cr in the cash market. However, in the F&O segment, they have increased net index call shorts, turned net sellers in calls, and added to net index puts.

This positioning suggests that FIIs have turned more bearish compared to two days ago, indicating caution at higher levels.

2️⃣ Global Market Cues

Global markets are trading in the red zone, largely due to concerns around potential disruption from rapid AI advancements, particularly anticipation around Artificial General Intelligence (AGI) adoption by major AI firms.

Additionally, yesterday’s sharp sell-off in the US markets has weakened

3️⃣ Technical Structure & Market Behavior

On charts, the market is still consolidating within a defined range, and no major structural weakness has emerged yet.

However, considering the US sell-off, a significant gap-down opening is expected. How the market reacts post-gap—whether it absorbs the selling or extends weakness—will determine the next directional move.

4️⃣ Key Levels to Watch

As indicated by Gift Nifty, markets may open with a sharp gap-down.

Nifty:

Support – 25,550

Resistance – **25,975

Bank Nifty:

Support – 59,800

Resistance – 60,900

A sustained move below supports may trigger further downside, while recovery above resistance levels can neutralize immediate pressure.

5️⃣ Our Stance

Avoid chasing momentum or attempting to catch a falling knife, especially in volatile sectors like IT.

Let the market stabilize post-gap opening. Focus on fundamentally strong stocks delivering consistent results and always trade with a strict stop-loss discipline.