Nifty 50 Market Outlook: Will the Index Find Support in the 24,700 Zone?
Date: July 28, 2025
Category: Stock Market Insights | Derivatives & Technical Analysis
🔍 Overview: Market Weakness Continues Amid Heavy FII Selling
Nifty 50 ended at 24,837 on July 25, 2025, closing well below key resistance levels and signaling potential continuation of the downward trend. A powerful combination of FII shorting in futures, aggressive call writing by PROs, and a sharp ₹3,201 Cr outflow from FII cash suggests that the bears are in control.
The index is now approaching a critical support zone—what I call the “Buy Zone” between 24,704 and 24,551—where a bounce or short-covering may trigger.
📊 Derivatives Data Breakdown: Futures & Options Indicate Pressure
💼 Futures Index Net Positions:
Market Participant Net Contracts Bias
FII –158,520 Strongly Bearish
PRO +17,396 Hedged Longs
DII +24,677 Contrarian Buying
📌 Key Insight: FIIs have offloaded aggressively in index futures, while DIIs are cautiously adding long positions.
🧨 Options Index Net Positions:
Participant Net Option Position Inference
FII –262,313 Heavy Call Writing
PRO –265,739 Bearish Bet Continuation
Both PROs and FIIs are heavily net short in index options, suggesting Nifty is unlikely to break above 25,010–25,100 in the short term.
🌐 Global Markets: Weak Cues Reinforce Domestic Selling
Global Index Weekly Trend Impact
Nasdaq Negative Drag on tech-heavy segments
Dow Jones Weak Global risk-off theme
S&P 500 Downtrend Reinforces FII outflows
Nifty Bank 56,528 Close Financials under pressure
🛑 Takeaway: All major global indices show weakness. With the USD-INR at 86.33, foreign investors are staying away.
💸 Institutional Flow Snapshot (July 25, 2025)
FII Net Outflow: ₹3,201 Cr (~$371 Million)
DII Cumulative Inflow (5 Days): ₹8,000+ Cr
✔️ DIIs continue to accumulate on dips.
📉 Nifty Technical Levels to Watch
Zone Range Significance
Resistance 25,010–25,090 Heavy Call OI
Central Pivot (TC) 24,959 Breakdown Confirmed
Buy Zone 24,704–24,551 Key Support Area
Reversal Level 25,163 Only above this, bulls regain control
🧠 What Can Traders Expect Next?
✅ Probable Bearish Continuation:
Target 1: 24,755
Target 2: 24,704–24,551
Break Below 24,551: Could open gates to 24,400–24,250
🔁 Alternate Scenario - Bounce Possible If:
Short covering kicks in from Buy Zone
Global markets stabilize
FIIs ease their selling spree
📌 Trading Strategy Suggestions
Intraday Traders: Short near 24,908–24,959 zone with stop-loss above 25,010
Positional Traders: Wait for confirmation bounce at 24,704–24,551 zone
Options Strategy: Bear Put Spreads or Short Call Spreads (25,100 CE and above)
✍️ Conclusion: Nifty At a Decisive Juncture
All signs—FII flows, derivative positioning, global cues, and technical structure—point to continued pressure on Nifty 50. However, the Buy Zone (24,704–24,551) is a critical area to watch for any reversal or relief rally. A break below this zone can escalate downside momentum.
📍 Stay tuned for live updates and follow-up analysis. Bookmark this space on Indirect Tax India Online for real-time derivative market strategies and Nifty trade setup.
> 💬 Comment below: Are you positioning for a bounce or a breakdown this week?
Anish Jagdish Parashar
Indirect tax india online research
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