Recent Market Sentiment Analysis (Nov 17 – Nov 20, 2025)
The last four sessions show a clear shift to bullish sentiment, with both Nifty 50 and Bank Nifty grinding higher (+179 points and +385 points respectively) while participant behaviour has turned decisively constructive — especially in the last two sessions.
Price + OI Combined Signals (Daily)
Date
Nifty Move
Cum Futures OI Change
Cum Options OI Change
Combined Signal
20 Nov
+140
+19,956
+17,675
Strong bullish (fresh longs)
19 Nov
+142
+6,036
+245,212
Very strong bullish (huge fresh positions, especially options)
18 Nov
–103
–443
–139,308
Mild long liquidation / profit booking
17 Nov
(reference)
The last two sessions are among the strongest bullish OI + price combinations seen in recent months. The massive +245k options OI addition on 19 Nov 19 (while index rose 142 points) is particularly aggressive buying — typically seen when institutions are adding fresh long gamma or call positions with conviction.
Participant Position Changes (17 Nov → 20 Nov)
Participant
Futures Net Change
Options Net Change
Interpretation
FII
+3,720
+68,677
Short covering in both futures & options — clear reduction in bearish bets
DII
+12,008
(not directly shown but supportive via cash)
Aggressive long addition in futures
Pro
+9,821
+54,902
Flipped strongly net long in options, added futures longs
Cumulative
+25,549 (less net short)
+123,579 (much less net short)
Market structure turning from net short to neutral/bullish
FIIs have covered the equivalent of ~72k lots of bearish exposure in just three sessions — this is a significant sentiment reversal from the heavy short build-up seen in the first half of November.
Cash Market Flows (Last 4 sessions)
FII cash: +283 + 1,580 – 728 + 442 = +1,577 Cr net buying
DII cash: +824 + 1,360 + 6,156 + 1,465 = +9,805 Cr
Domestic institutions continue to absorb everything, and now FIIs have also turned net buyers in cash over these four days.
Current Market Sentiment Summary (as of 20 Nov close)
Short-term sentiment: Strongly Bullish
The combination of:
Price up + OI up on heavy volume (especially 19–20 Nov)
FII short covering in both futures and options
Pro desks flipping aggressively net long
Return of FII cash buying signals that the corrective/bearish phase from early–mid November is likely over. The market has flipped from "FII short + DII support = grudging grind higher" to "FII covering + DII buying + Pro long = genuine buying conviction".
Expected near-term bias: Upside continuation. Nifty 26,400–26,600 and Bank Nifty 60,000+ are realistic targets unless FIIs suddenly reverse and add shorts again (currently not happening).
The bearish overhang that dominated the first half of November has been substantially reduced in just three sessions. This is one of the cleanest bullish shifts in derivative positioning seen in the past 2–3 months.
Trade implication: Long bias favoured. Trail stops below 25,900–26,000 zone. Any dip towards 26,050–26000 likely to be bought aggressively.
Anish Jagdish Parashar
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