Market Pulse: NIFTY Insights

📉 Market Snapshot

NIFTY 50 held the 22,500 level for the last three sessions but finally broke below it on Friday, closing at 22,124.70 (-420.35 / -1.86%). Now, 22,000 is a crucial psychological support level.

🔻 Downside Levels (Support)

• 22,067 – Immediate support; if breached, 22,000 will be tested.
• 22,000 – A decisive break below this level could trigger further selling.
• 21,784 – A close below this level opens deeper downside levels.

📈 Upside Levels (Resistance)

• 22,300 – Needs to be reclaimed for short-term recovery.
• 22,500 – Key resistance; a breakout above this level is essential for sustained upside.

📊 Market Sentiment

Overall sentiment remains weak, with limited upside potential. Based on analysis, NIFTY is likely to trade in the 21,800 – 22,300 range in the short term

————————————————————————————————

📊 Open Interest (6 Mar Expiry)

• 21,800: CALL OI: 1.71L | PUT OI: 72.29L
• 22,000: CALL OI: 10.88L | PUT OI: 51.42L
• 22,300: CALL OI: 72.64L | PUT OI: 32.34L
• 22,500: CALL OI: 120.30L | PUT OI: 32.31L

Key Insights from Open Interest Data:

• Heavy put writing at 22,000 suggests it is a strong support level, but if breached, the downside could accelerate.
• Massive call OI at 22,500 indicates strong resistance, meaning an upside breakout is unlikely in the near term.
• 22,300 call OI is significantly higher than put OI, suggesting sellers are actively defending this level.
• Put unwinding at higher levels signals weaker bullish confidence, increasing downside risk.

————————————————————————————————

FII & DII Activity (Fri, 28 Feb 2025)

• FII Cash Market: -₹11,639.02 Cr (Heavy selling pressure)
• DII Cash Market: +₹12,308.63 Cr (Strong domestic buying)
• FII Index Futures: -₹2,473.54 Cr
• FII Index Options: -₹3,188.47 Cr
• FII Stock Futures: +₹3,392.36 Cr
• FII Stock Options: -₹2,807.13 Cr

————————————————————————————————

🔔 Conclusion:
NIFTY remains weak, with 22,000 acting as crucial support and 22,300 as resistance for any meaningful rebound. A decisive break below 21,800 could lead to further downside.