1️⃣ FII Activity & Positioning

FIIs have sold ₹880 crore worth of equities in the cash segment, reflecting selling pressure.

In the F&O segment, they have:

Increased net index short positions

Significantly increased net index put positions

Created fresh shorts in net index calls

Overall derivatives positioning suggests a bearish bias.

2️⃣ Global Market Cues

Global sentiment remains neutral to slightly negative.

No major panic globally

No sharp risk-off sentiment like seen in our market yesterday

However, weak global undertones may limit upside momentum.

3️⃣ Technical & Data View

On charts, the market structure appears weak.

Recent sharp downside move was likely amplified by Sensex expiry volatility

Broader sentiment remains fragile

From a data perspective:

PCR at 0.70 – approaching oversold territory

FII Index Long/Short Ratio at 30 (higher than yesterday)

This suggests that while the trend is weak, there is potential for a short-term relief bounce from lower levels.

4️⃣ Key Levels to Watch

Nifty

Support: 25,250

Resistance: 25,650

Bank Nifty

Support: 60,400

Resistance: 61,100 – 61,400

5️⃣ Our Stance

Maintain a cautious approach.

Avoid aggressive long positions

Do not chase breakdowns

Wait for market stabilization and confirmation

For now, adopt a wait-and-watch strategy until volatility settles.