NIFTY OPTION and FUNDFLOW ANALYSIS - 28 April 2025 - No great sign of big movement yet. 23500 will act as support. Panic only below 23500.
Here’s a comprehensive analysis of Nifty options data for the week ending April 25, 2025:
📊 Nifty Weekly Option Chain Summary
-
Index Performance: Nifty closed at 24,039.35, down 207.35 points (-0.86%) on April 25, 2025 .
- Key Resistance Levels:
- 25,000 Strike: Highest Call Open Interest (OI) at 58.51 lakh contracts, indicating strong resistance.
- 24,800 & 25,200 Strikes: Significant Call writing observed, suggesting additional resistance zones .
Key Support Levels:
23,500 Strike: Maximum Put writing with 17.74 lakh contracts, indicating strong support.- 24,000 & 24,200 Strikes: Notable Put writing, reinforcing support levels .
- Put-Call Ratio (PCR): Stands at 1.03, suggesting a balanced market sentiment with a slight bullish bias .
🔎 Market Outlook
- Trading Range: Based on option chain data, Nifty is expected to trade between 24,000 and 24,500 in the near term .
Technical Indicators:
Resistance: A move above 24,500 could lead Nifty towards 24,650.- Support: Sustaining below 24,300 may see Nifty decline towards 24,100 .
Sector Performance:
IT Sector: Remained resilient, buoyed by positive cues from US markets.- Financials: Faced broad-based selling; notable underperformers included SHRIRAMFIN (-8%) and PFC (-5%) .
📌 Key Takeaways
- Resistance Zone: 24,800 to 25,200.
- Support Zone: 23,500 to 24,000.
- Market Sentiment: Neutral to slightly bearish, with balanced PCR and significant OI at key strikes.
Strategy Consideration: Given the current market dynamics, traders might explore strategies like Bear Put Spreads to navigate potential downward movements.Here’s the latest FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) activity for the Indian equity markets as of Friday, April 25, 2025:
📈 FII & DII Cash Market Activity
| Date | FII Net Activity (₹ Cr) | DII Net Activity (₹ Cr) |
|---|---|---|
| 25-Apr-2025 | +2,952.3 | +3,539.8 |
| 24-Apr-2025 | +8,250.5 | -534.5 |
| 23-Apr-2025 | +3,332.9 | -1,234.5 |
| 22-Apr-2025 | +1,290.4 | -885.6 |
| 21-Apr-2025 | +1,970.2 | +246.6 |
🔍 Derivatives Market Activity (FII)
On April 25, 2025, FIIs' activity in the derivatives segment was as follows:
- Index Futures: Net Short of ₹1,672.3 Cr
- Index Options: Net Short of ₹59,359.1 Cr
- Stock Futures: Net Long of ₹1,901.7 Cr
- Stock Options: Net Short of ₹1,745.4 Cr
📊 Market Impact Summary
- Cash Segment: Both FIIs and DIIs were net buyers on April 25, indicating strong institutional support.
- Derivatives Segment: FIIs maintained a cautious stance with significant short positions in index options, suggesting hedging against potential downside risks.
📌 Key Takeaways
- The positive net buying by both FIIs and DIIs in the cash market reflects confidence in the Indian equity markets.
- However, the substantial short positions in index options by FIIs indicate a cautious approach, possibly hedging against market volatility.
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