1️⃣ FII Activity & Positioning

FIIs have sold ₹900+ Cr in the cash market, indicating some profit booking at higher levels.

In the F&O segment, they have:

Reduced a portion of net index shorts

Added some net index calls

Significantly reduced net index puts

Overall positioning suggests the sentiment is currently neutral, rather than aggressively bearish.

2️⃣ Global Market Cues

Global markets remain neutral to slightly negative. There is visible uneasiness among participants regarding the long-term disruption that Artificial General Intelligence (AGI) could bring across industries.

Additionally, the recent negative closing in US markets may influence short-term sentiment.

3️⃣ Technical & Data Perspective

On charts, the market structure still looks strong, especially Bank Nifty, which has closed above the crucial 60,900 level, indicating relative strength.

However, due to weak US cues, a gap-down opening cannot be ruled out. The key will be whether the market absorbs the selling pressure after the open.

From a data standpoint:

PCR at 1.11 indicates a neutral-to-positive bias

FII long-short ratio at 25 suggests positioning is not overly aggressive and leaves room for directional expansion

Overall tone: Neutral to slightly positive, unless supports break decisively.

4️⃣ Key Levels to Watch

Nifty

Support: 25,550

Resistance: 25,900

Bank Nifty

Support: 60,400

Resistance: 61,300

Holding above support zones may keep momentum intact, while breakdowns could invite short-term weakness.

5️⃣ Our Stance

Stay selective and disciplined.

Focus on quality stocks showing strength and strong earnings visibility.

Trade with a strict stop-loss and avoid emotional decisions around gap openings.