Market Sentiment Interpretation – 17 Nov to 21 Nov 2025 (5 trading sessions)
Date
Nifty Close
Daily Chg
FII Cash (₹ Cr)
DII Cash (₹ Cr)
Cum. Futures OI Net
Cum. Options OI Net
Key Observation
17-Nov
26,013
+103
+442
+1,465
–105,928
–223,154
Mild profit booking
18-Nov
25,910
–103
–728
+6,156
–106,371
–362,462
Heavy DII buying
19-Nov
26,052
+142
+1,580
+1,360
–100,335
–117,250
FII turned buyer
20-Nov
26,192
+140
+283
+824
–80,379
–99,575
Strong covering
21-Nov
26,068
–124
–1,766
+3,161
–76,244
–520,340
Sharp bearish shift
Key Sentiment Signals (as of 21-Nov close)
Price Action
Nifty made a high of ~26,192 on 20-Nov and fell 124 pts on 21-Nov → first meaningful correction after 5-session rally.
Still up ~+55 pts from 17-Nov levels → medium-term trend remains up.
Cash Market Flows
FIIs flipped from buying (+1,580 Cr on 19th) to aggressive selling (–1,766 Cr on 21st).
DIIs absorbed everything (+3,161 Cr on 21st, +6,156 Cr on 18th) → strong domestic hands.
Index Futures OI
FII net short reduced from –169k → –165k on 20th (short covering) but again added shorts on 21st (–169.8k).
DII net long steadily increased.
Cumulative futures net short reduced from –106k → –76k (less bearish than earlier in the week).
21-Nov saw +4,135 contracts added while price fell → mild fresh short build-up, but not aggressive.
Index Options OI – The Big Red Flag
Cumulative options OI swung from –99k (20-Nov) to –520k (21-Nov) → a massive –421k contracts added in a single day.
Almost entirely driven by FIIs & Pros turning heavy net short in options (call writing + put buying).
This is the most bearish single-day options swing in the entire Nov series so far → indicates institutions are aggressively hedging/preparing for downside or higher volatility.
Current Market Sentiment Summary (as of 21-Nov-2025 close
Time Frame
Sentiment
Confidence
Key Driver
Very Short Term (Mon–Wed)
Bearish to Very Bearish
High
Huge options short build-up + FII cash selling
1–2 Weeks
Cautiously Bullish
Medium
DII cash support + futures shorts not extreme
Trend (Nov series)
Still Bullish (DII-led)
Medium-High
Nifty +300 pts in 3 weeks despite FII selling
Trading Implications
Expect heightened volatility and possible test of 25,800–25,900 zone early next week.
Any close below 25,900 with continued options short build-up will turn sentiment properly bearish.
As long as DII cash remains > ₹2,500–3,000 Cr and cumulative futures OI net stays above –80k, dips will continue to get bought (classic “buy on dips, sell on rises” market).
Options players: Very high call writing at 26,200–26,500 strikes → strong resistance; put base building at 26,000–25,800.
Bottom Line
The market is currently in a short-term bearish phase inside a medium-term DII-supported bull trend.
21-Nov’s monstrous options selling is a clear warning sign for the next 2–5 sessions, but the underlying strength from domestic institutions is still intact.
Trade accordingly: lighten longs/aggressively hedge above 26,200, but avoid fresh shorts unless Nifty sustains below 25,900.
Anish Jagdish Parashar
Indirect tax india online research
Disclaimer:Content reflects personal views of the author; for trading and investment purposes consult with your financial advisor.
