DII (Domestic Institutional Investors): Showed a net positive cash position (₹2,320 crore) but heavy selling in future stock net (-₹39,97,669 crore, likely a typo—assuming lakhs or crores in a reasonable range). This indicates cautious profit-taking or hedging in futures while maintaining cash positivity.
FII (Foreign Institutional Investors):
Net sellers in futures (-₹1,76,158 crore) and options (-₹52,660 crore), but significant buying in future stock net (₹15,74,228 crore, again likely a typo—assuming lakhs or crores). This suggests selective long positions in stocks, offset by bearish or hedging bets in derivatives.
Proprietary Traders (Pro):
Aggressive shorting in option stock net (-₹3,95,311 crore) but buying in futures (₹94,268 crore), indicating mixed strategies—possibly hedging or speculative plays.
Interpretation:
Institutional players show mixed sentiment, with FIIs leaning slightly bearish in derivatives and DIIs taking profits, suggesting potential volatility or consolidation.
Nifty 50 Technicals:
Closed at 22,553 on March 7, sustaining above the bearish gap of February 28 with above-average volumes—a bullish sign.
Key resistance: 22,615, 22,655, 22,719.
Key support: 22,486, 22,446, 22,381.
RSI at 41.7 with a positive crossover but in the lower band suggests momentum is building but not overbought, leaving room for upside.
Expert view:
Holding above 22,500 could push the index toward 22,750-22,800, while a break below 22,500 may test 22,300.
Bank Nifty Technicals:
Closed at 48,498, forming a Doji-like pattern with indecision and closing below the 5-day EMA—a sign of weakening momentum.
Key resistance: 48,656, 48,738, 48,872.
Key support: 48,388, 48,306, 48,172.
Fibonacci levels suggest a broader range: resistance at 49,398-50,371,
support at 47,881-46,078.
Interpretation:
Bank Nifty appears more vulnerable to downside pressure compared to Nifty 50.
Options Data:
Nifty: Maximum Call OI at 23,100 and Put OI at 22,300 indicate a broad trading range. Heavy Call writing at 22,800 and 23,100 suggests resistance, while Put writing at 22,300 reinforces support.
Bank Nifty: Call OI peaks at 49,000 (resistance), Put OI at 48,000 (support). Call writing at 49,000 and Put writing at 48,000 suggest a tighter range with potential selling pressure near 49,000.Put-Call Ratio (PCR): Dropped to 1.08 from 1.14, still above 1, indicating mild bullish sentiment but waning momentum.
India VIX:Fell to 13.47, below key EMAs, signaling low volatility and comfort for bulls. A stable VIX supports consolidation or gradual upside rather than sharp declines.
Broader Trends:Long build-up in 41 stocks and short build-up in 79 stocks suggest a market with selective bullishness but broader caution.F&O ban on Hindustan Copper and Manappuram Finance indicates speculative pressure in specific counters.
Nifty 50: Important Levels and Likely Movement
Current Level: 22,553 (as of March 7).Key Resistance Levels: 22,615 (immediate), 22,655, 22,719.Key Support Levels: 22,486 (immediate), 22,446, 22,381; critical support at 22,300 if 22,500 breaks.Likely Movement (March 10, 2025):Bullish Case: If the index holds above 22,500 with sustained volumes, it could test 22,615-22,655 in the short term, aligning with expert views of a potential move to 22,750-22,800. Positive global cues or FII buying could fuel this.Bearish Case: A break below 22,486 could trigger profit-taking toward 22,446 or 22,381, with 22,300 as a strong base if sentiment weakens.
Prediction:
Given the bullish candle, RSI positivity, and VIX comfort, the Nifty 50 is likely to trade range bound with a positive bias, testing 22,615-22,655 unless significant selling pressure emerges.
Bank Nifty: Important Levels and Likely Movement
Current Level: 48,498 (as of March 7).
Key Resistance Levels: 48,656 (immediate), 48,738, 48,872.
Key Support Levels: 48,388 (immediate), 48,306, 48,172;
deeper support at 47,881.
Likely Movement (March 10, 2025):Bullish Case: A reclaim of 48,656 could push the index toward 48,738-48,872, but momentum appears weaker than Nifty 50.
Bearish Case: Failure to hold 48,388 may lead to a slide toward 48,306 or 48,172, with 48,000 (Put OI base) as a key level to watch.
Prediction:
in The Doji-like pattern and loss of momentum suggest Bank Nifty may remain range bound with a slight bearish tilt, likely consolidating between 48,388-48,656 unless banking stocks see renewed buying.
Trading Strategy
Suggestions Nifty 50:
Bullish Trade: Buy on dips near 22,500-22,486 with a stop-loss below 22,446, targeting 22,615-22,655.
Bearish Trade: Short below 22,486 with a stop-loss above 22,500, targeting 22,381-22,300.
Bank Nifty:
Bullish Trade: Buy above 48,656 with a stop-loss below 48,388, targeting 48,738-48,872.
Bearish Trade: Short below 48,388 with a stop-loss above 48,656, targeting 48,306-48,172.
Final Note
The Nifty 50 shows resilience and potential for gradual upside, while Bank Nifty appears more indecisive and prone to consolidation or mild downside.
Anish Jagdish Parashar
Indirect Tax India Research
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