Outlook for Wednesday
Date: May 27, 2025
Source: Option Matrix India
Focus: Derivatives positioning + Institutional cash flow
Snapshot: Participant Derivatives Positions
Market participants are sending divergent signals, with Clients continuing to hedge, Pros neutral-to-volatile, and FIIs selectively bullish. Here’s the breakdown:
Client (Retail/HNI)
- Future Stock Long: +49,581
- Put Longs (Index): +580,030
- Stock Options: Heavy Call & Put Shorting
- Net Positioning: Defensive with volatility expectation
- Total Long: 305,451 | Short: 515,693
🧠 Insight: Clients are aggressively hedging through index puts and shorting calls—classic caution near market highs or ahead of uncertainty.
DII (Domestic Institutions)
- Massive Cash Buy: ₹10,104.66 Cr 🔥
- Low Derivatives Activity
- Minor shorts in Index Futures (-19,215)
🧠 Insight: Despite light derivatives activity, their cash inflow shows strong conviction in fundamental strength. Likely long-term accumulation.
FII (Foreign Institutions)
- Cash Buy: ₹348.45 Cr
-
Selective Longs in Options:
- Index Calls: +167,539
- Index Puts: +123,497
- Mixed Futures: Net short Index Futures (-1,750), long in Stock Futures (+15,886)
🧠 Insight: FIIs are cautiously optimistic—buying options but not yet committing heavily in futures. Long-side activity in stock futures hints at stock-specific strength.
⚙ Pro (Prop Traders)
- Index Option Longs (Calls + Puts) both heavy → 282,770 + 86,315
- Futures: Short Index Futures (-13,236)
- Stock Options: Balanced long/short positions
🧠 Insight: Pros are playing volatility over direction, indicating anticipation of sharp moves but no clear bias.
Total Market Positioning
| Metric | Value |
|---|---|
| 🟢 Total Long Contracts | 10,24,644 |
| 🔴 Total Short Contracts | 10,24,644 |
| 🟢 % Wise Long | 23.66% |
| 🔴 % Wise Short | 22.25% |
Balanced positioning shows markets are at a potential inflection point, where a decisive move could be sparked by macro data, Fed signals, or global cues.
Cash Market Activity (May 27, 2025)
- DII Inflows: ₹10,104.66 Cr ✅ (Strong buying)
- FII Inflows: ₹348.45 Cr ✅
📌 Net Institutional Buying: Over ₹10,453 Cr – a powerful support to equities.
Monday Market Outlook: Mildly Bullish with Volatility Risk
📌 Key Drivers:
- Heavy DII cash inflow = Strong domestic conviction
- FII mildly bullish = External support
- Clients & Pros hedging = Volatility warning
Expectation:
- Positive bias at open, especially in large-cap stocks
- Possible mid-day volatility as expiry positions get realigned
- Nifty and BankNifty may stay range-bound unless global markets provide a breakout trigger
Strategy Suggestions: 💡
🔹 Bullish Traders:
- Buy near support, focus on quality stocks
- Use Call Debit Spreads for defined risk
🔹 Volatility Traders:
- Straddles/Strangles on key indices
- Avoid naked option selling
📢 Stay sharp. Follow the flows. Trade with insight.
Option Matrix India – Your edge in the options market.
Nifty Wednesday Range Prediction (May 28, 2025) 📈
| 📊 Projected Range | 24,650 – 24,950 |
|---|---|
| 🔼 Resistance Zone | 24,920 – 24,950 (Call writing & historical supply) |
| 🔽 Support Zone | 24,650 – 24,680 (Put buildup & DII cash support) |
🔍 Why This Range?
- Heavy Index Put Longs by Clients & Pros → Indicates fear of downside, but also support near 24,650.
- DII Massive Cash Inflow (₹10K+ Cr) → Strong institutional floor, likely around 24,650-24,700.
- FII cautious optimism → Limited breakout expected without global triggers.
- Option Chain Analysis (implied) → 25,000 CE & 24,700 PE are likely OI concentration zones.
📌 Actionable Summary:
- Intraday Traders: Expect range-bound movement between 24,650–24,950
- Swing Traders: Wait for a breakout above 24,950 for a fresh long or breakdown below 24,650 for short setups
- Volatility Traders: Prepare for sudden spikes due to expiry adjustments or global news