Market Pulse: NIFTY 50 Holds Firm Amid Global Strength & Derivative Positioning
Date: June 27, 2025
On June 27, 2025, the NIFTY 50 closed at 25,637.8, gaining 88 points from the previous day, signaling a resilient upward momentum despite continued net short positioning in index options. The NIFTY Bank also surged to 57,443.9, showing strong banking participation.
Meanwhile, US markets, led by the NASDAQ Composite (6,141.02) and S&P 500 (6,045.26), continued their rally, reinforcing positive global risk sentiment.
🔍 2. Derivative Market Analysis
a. Index Futures (Net Positioning)
FIIs reduced long positions from 30,435 contracts (25-Jun) to 28,909 (27-Jun), indicating mild unwinding.
Despite this, the net drop of only ~1,500 contracts doesn't suggest panic; it's more profit-booking after the rally from 24,718 (13-Jun) to 25,637 (27-Jun).
b. Index Options (Net Positioning)
FIIs remain heavily short on puts (Put Shorts: 2,23,576) and also long on calls (Call Longs: 2,601), suggesting they are positioned for limited upside or consolidation, not a major decline.
The Put Call Ratio (PCR) by OI indicates neutral to mildly bullish bias.
c. Daily OI Changes
Index Futures Variation: -11,740 contracts ➔ indicates short unwinding or reduction of long positions.
Index Options Variation: -16,349 contracts ➔ reflects cooling off in aggressive hedging.
d. Proprietary Traders (PRO)
PRO traders show a net long stance in both Futures and Options.
Notably, cumulative PRO OI in Index Options rose sharply from 1.25L to 2.23L within a week, hinting at volatility play or directional bets on upside.
💰 3. Institutional Flow (Cash Market)
FII net cash buy: ₹1,397 Cr on 27-Jun vs ₹195 Cr on 26-Jun ➔ clear comeback of foreign liquidity.
DII: Net sellers of ₹588 Cr on 27-Jun ➔ rotating money into broader market or booking profits.
Conclusion: Strong FII inflow on 27-Jun supported the bullish tone despite lack of aggressive futures buildup.
🌍 4. Global Market Context
US & EU indices surged:
NASDAQ: up from 6,092 (25-Jun) to 6,141 (26-Jun)
Dow Jones: up from 42,982 to 43,386
S&P 500: recovered to 6,045
Bond Yields fell slightly, improving equity attractiveness. AI-driven tech optimism continues to support US markets, lifting sentiment globally.
📈 5. Technical Snapshot
Date NIFTY Close Bank NIFTY Close NASDAQ DOW S&P 500
25-Jun 25,549 56,621 6,092 42,982 6,092
26-Jun 25,637.8 57,443.9 6,141 43,386 6,045
NIFTY has held above the 25,500 zone convincingly.
Bank NIFTY breaking past 57,000 signals strong domestic banking momentum.
🤮 6. Forward Outlook
Key Support for NIFTY 50: 25,400 / 25,200
Immediate Resistance: 25,800 / 26,050
Trigger Watch:
US PCE inflation data
Crude Oil volatility
RBI commentary on inflation/rupee
Derivative rollover trends (monthly expiry on 27-Jun)
🧠 Sentiment Summary
Indicator Reading (27-Jun) Signal
FII Cash Buying ₹1,397 Cr ✅ Bullish
Index Futures Net OI 28,909 (↓1,526) ⚠️ Mild Cooling
Options Put Shorts (FII) 2,23,576 ✅ Bullish Bias
Global Markets All major indices up ✅ Positive Setup
PCR (Estimated) >1.1 ✅ Optimistic
📝 Conclusion
Despite derivative unwinding and DII profit booking, the market holds firm thanks to renewed FII cash inflow, strong US momentum, and resilient banking sector performance. If 25,800 is crossed, expect momentum towards 26,000+ in NIFTY. But caution is advised near monthly expiry adjustments.
Anish Jagdish Parashar
Indirect tax india research
Disclaimer:Content reflects personal views of the author and for trading and investment purposes consult your financial advisor.
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