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The Week That Was:

• Nifty futures advanced 0.4% (82.3 points) closing Friday at 22,612.6, expanding open interest by 0.6% or 1.35 lakh shares to 217.45 lakh, signaling bullish momentum via steady long accumulation.

• Bank Nifty futures surged 1.2% (684.8 points) settling at 55,479.6, marginally lifting open interest by 0.3% or 0.07 lakh to 25.54 lakh, reflecting sustained buying appetite and underlying institutional strength. • India VIX cooled 0.5% dropping to 14.38% from 14.45%, indicating reduced market anxiety and a supportive backdrop for ongoing upside trajectory.

• FIIs Long Short ratio increased from 0.09 to 0.11 driven by long additions and short unwinding in index futures, though overall absolute shorts still outnumber longs, signaling a marginally improved yet prevailing bearish institutional bias across index and stock derivatives segments.

Nifty Open Interest Put-Call Ratio

• Nifty Put-Call Ratio (PCR) surged by 0.37 week-over-week as aggressive Put writing outstripped Call unwinding, signaling strong downside support and a decisive bullish shift in derivatives market sentiment that favors callside long exposure or bull-spread positioning.

Volatility Analysis

• The current week's Nifty monthly expiry curve exhibits a parallel downward shift across all moneyness levels compared to last week, with implied volatility dropping from 13.9% to 13.2%, while the deep out-of-the-money put skew remains anchored at 17.3%, maintaining a steep downward slope.

• This uniform IV compression signals an unwinding of tail-risk protection and fading market fear following event risk, encouraging traders to sell premium. However, the resilient put skew highlights persistent defensive hedging, indicating downside coverage over aggressive upside leverage pursuit.

Nifty Open Interest Concentration (Monthly)

• Nifty resistance remains anchored at 23,500 with secondary overhead pressure at 23,000, while downside protection has recalibrated, broadening support down to 22,000 from last week's 23,000 floor. Underlying bullish momentum and persistent long positions suggest a consolidating, range-bound market bias between key boundaries.

• Speaking of open interest changes, the 22,700-strike Call and 22,300 strike Put saw the maximum addition.

• Nifty futures are expected to trade within the 22,000 to 23,000 range, with 22,500 acting as a critical pivot for the short-term trend

Bank Nifty Open Interest Concentration (Monthly)

• Bank Nifty resistance remains firm at 58,000 with additional overhead pressure developing at 57,000, while downside protection has widened, extending support down to 54,000 alongside existing 55,000 buffers. Underlying momentum and accumulation point toward a expanding, range-bound market structure within these established boundaries.

• Speaking of open interest changes, the 55,000-strike Call and 55,000 strike Put saw the maximum addition, alongside the 55,300 strike Call and 55,500 strike Put.

• Bank Nifty price action orbits the critical 56,000 pivot with a fortified downside protection at 54,000 Sources against overhead resistance near 57,000.

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