Market Prediction 27th June 2025
Description: Today’s market closed at 25,549 (Nifty) and 57,206.7 (Bank Nifty), with strong buying activity from FIIs (₹12,594.38 Cr in cash markets). The derivative market data reveals mixed sentiments, with significant put writing in Nifty and aggressive call selling in Bank Nifty. This analysis decodes FII/DII activity, option chain trends, and global cues to predict tomorrow’s market direction.
Key Observations from Market Participant Data (F&O)
- FIIs (Foreign Institutional Investors)
- Cash Market: Net buyers (₹12,594.38 Cr) – Bullish signal.
- F&O Activity: Net short in index futures (-63,451 contracts) but long in stock futures (-164,186).
- Options: Heavy call writing in Nifty (-4,43,344 contracts) and Bank Nifty (-1,79,951).
- DIIs (Domestic Institutional Investors)
- Cash Market: Net sellers (₹195.23 Cr).
- F&O Activity: Short in stock futures (-1,50,988) but long in index futures (+444).
- Pro Traders (High Net Worth Individuals & Proprietary Traders)
- Net short in both index (-30,762) and stock futures (-1,97,774).
- Heavy put writing in Nifty (-6,97,501), indicating hedging.
- Client (Retail Traders)
- Net short across futures and options, suggesting caution.
Key Takeaway: FIIs are bullish in cash but hedging in F&O, while Pro traders are bearish. Retail remains cautious.
Nifty & Bank Nifty Option Chain Analysis
Nifty (Current Expiry)
- Max Pain: 25,500 (PCR: 1.29) – Bullish bias.
- Highest OI:
- PE: 25,500 (70,359 contracts) – Strong support.
- CE: 25,600 (1,15,533 contracts) – Resistance.
- Put-Call Ratio (PCR): 1.29 (Bullish).
- IVs (Implied Volatility):
- Calls: 10.3%
- Puts: 13.54% (Higher put IV suggests hedging).
Bank Nifty (Current Expiry)
- Max Pain: 57,200 (PCR: 1.04) – Neutral.
- Highest OI:
- PE: 57,200 (90,735 contracts).
- CE: 57,200 (83,929 contracts).
- PCR: 1.04 (Slightly bullish).
- IVs:
- Calls: 9.5%
- Puts: 15.87% (Higher put demand).
Key Takeaway: Nifty has strong put support at 25,500, while Bank Nifty is range-bound near 57,200.
Notable Option Activity
Nifty
- Aggressive Put Writing at 25,500 (70,359 contracts added).
- Call Unwinding at 25,600 (-54,065 contracts).
- PCR Change: +38,449 (Bullish shift).
Bank Nifty
- Call Selling at 57,300 (-24,886 contracts).
- Put Accumulation at 57,200 (+89,648 contracts).
Key Takeaway: Nifty is bullish, while Bank Nifty is consolidating.
Tomorrow’s Market Prediction
Nifty Outlook
- Support: 25,500 (Strong Put Base).
- Resistance: 25,600 (Call OI Wall).
- Expected Range: 25,450 – 25,700.
- Bias: Bullish (FII cash buying + Put support).
Bank Nifty Outlook
- Support: 57,000 (PE OI).
- Resistance: 57,500 (CE OI).
- Expected Range: 56,800 – 57,500.
- Bias: Neutral to Bullish (Depends on FII follow-through).
Institutional Activity & Sentiment
- FIIs: Bullish in cash, but hedging in F&O.
- DIIs: Mild selling in cash, neutral in F&O.
- Pro Traders: Bearish, likely hedging.
Global Cues Impact:
- Crude Oil: Below $65.5 (Positive for India).
- Rupee: Near 85.6 (Stable).
- US Markets: Slight uptick (Supportive).
Trade Recommendations
Nifty
- Bullish Strategy: Buy 25,500 PE for downside protection.
- Breakout Trade: Above 25,600, target 25,700.
Bank Nifty
- Range-bound Strategy: Sell 57,500 CE & Buy 57,000 PE.
- Breakout Trade: Above 57,500, target 57,800.
Risk Management:
- Use strict stop-loss (Nifty: 25,450 / Bank Nifty: 56,800).
Final Verdict
Nifty: Bullish (25,500-25,700).
Bank Nifty: Neutral to Bullish (57,000-57,500).
FII cash buying and strong put support in Nifty suggest an upward bias. Bank Nifty may consolidate before a breakout.
Disclaimer: This analysis is for educational purposes only. Consult a financial advisor before trading.