FIIs Build Bullish Bets as Nifty Hovers Above 24,200; Key Support and Resistance Levels
With foreign institutional investors (FIIs) ramping up their long positions, the Nifty index is poised above the critical 24,200 mark. Traders are keeping a close eye on the 24,350 resistance level, as a decisive breakout could propel the index towards higher targets.
F&O Market Update: Bullish Momentum Holds
The futures and options (F&O) setup for Tuesday, November 26, indicates sustained bullish momentum. FIIs have shown an increased preference for long positions, driving the long-short ratio to 36.74 from 33.58 recorded on Monday.
Nifty’s immediate support zones are pegged at 24,200 and 24,100, while resistance remains at 24,350. A successful breach of the resistance level could open the door to 24,550 in the short term.
Nifty Futures and Options Analysis
On Monday, Nifty November futures witnessed a 1.62% surge in open interest (OI), signaling long build-up as the index closed at 24,222. Analysts observed a cumulative OI rise of 2.37% across current, next, and far-month series, further reflecting bullish sentiment.
Sudeep Shah, Head of Technical & Derivatives Research at SBICAP Securities, highlighted, “The 100-day EMA at 24,320-24,350 presents a significant hurdle for Nifty. A breakout above 24,350 could push the index towards 24,550 in the near term.” On the downside, Nifty has immediate support at 24,130-24,100, with a deeper cushion at 23,980.
Options data reveals heavy call OI at the 24,300 and 24,400 strikes, signaling strong resistance zones. Meanwhile, significant put writing at the 24,200 and 24,000 levels establishes these as robust support areas. The put-call ratio (PCR) for the November series is at 1.03, reflecting a balanced but slightly bullish sentiment.
Bank Nifty: Eyes on 52,500 Resistance
Bank Nifty outperformed on Monday, surging over 2% amid a strong short-covering rally. The cumulative OI across Bank Nifty futures series dropped by 17.6%, further affirming bullish sentiment. Immediate resistance for the index lies at 52,450-52,500, with a potential upside to 52,900 if breached. Support levels are seen at 51,800 and 51,700.
Shivangi Sarda, Derivatives & Quantitative Research Analyst at Motilal Oswal, noted significant call OI at the 54,000 strike and put OI at the 51,000 strike. Bank Nifty’s PCR at 1.28 underscores a strong bullish bias.
Market Indicators and Sectoral Performance
India VIX dropped by 5% to settle at 15.3, signaling reduced market volatility. Analysts expect VIX to find support at 14-13.8 and face resistance at 16.8-17. Sector-wise, the Nifty PSU Bank index has rebounded 10% in the last three sessions, while Nifty IT and Nifty Realty are expected to continue their outperformance in the short term.
FIIs Continue to Drive Market Sentiment
FIIs were net buyers in the equities segment on Monday, purchasing equities worth ₹9,947.55 crore, while DIIs booked profits worth ₹6,907.97 crore. FIIs’ long-short ratio in index futures rose to 36.74, reflecting a strengthening bullish bias. In stock futures, FIIs added 69,861 contracts, further solidifying the positive outlook.
Trading Outlook for Today
Nifty’s ability to sustain above the 24,200 support level while breaking 24,350 will be critical for further upside momentum. A move above this key resistance could pave the way for 24,550, while any breach of support levels may trigger a corrective move.
For Bank Nifty, a breakout above 52,500 could extend gains to 52,900, while supports at 51,800 and 51,700 remain crucial.
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