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The Week That Was:

• Nifty futures dropped 2.3% or 562.9 points to close Friday at 23,485.2, while open interest expanded 14.8% by 28.26 lakh shares totaling 218.89 lakh, marking a short build-up that underscores prevailing bearish sentiment.

• Bank Nifty futures ended the week at 56,869.2, shedding 1.6% or 905.6 points alongside an 11.1% open interest increase, adding 2.45 lakh shares to reach 24.81 lakh, reflecting a short build-up that reinforces near-term downward pressure.

• India VIX jumped 15% to reach 12.28% from its previous 10.68%, highlighting escalating market volatility and pricing in heightened systemic risk.

• FIIs Long Short ratio ticked higher from 0.12 to 0.13 amid concurrent additions to index futures longs and shorts; however, with absolute shorts overwhelmingly exceeding longs, the overarching institutional posture across index and stock segments remains persistently bearish.

Nifty Open Interest Put-Call Ratio

• Nifty Put-Call Ratio (PCR) expanded 0.08 WoW as Put open interest additions outpaced notable Call accumulation, highlighting strong downside support and signaling a tactical buy-on-dips strategy.

Volatility Analysis

• The Nifty implied volatility curve shifted sharply higher this week. At-themoney volatility surged to 11.3, and the downside put skew steepened dramatically compared to last week's levels.

• Market fear is swiftly repricing. Traders are actively paying up for downside protection while chasing upside premiums, signaling strong institutional hedging against outsized market swings.

• Nifty faces a downward-shifting options profile, establishing 24,000 and 24,500 as firm overhead resistance while leaving 23,000 as primary support. Aggressive short accumulation confirms a bearish bias, pointing to capped gains and tight range-bound price action.

• Speaking of open interest changes, the 24,000-strike Call and 23,400 strike Put saw the maximum addition.

• Nifty futures are expected to trade within the 23,000 to 24,000 band, with the 24,000 level serving as a critical pivot dictating near-term directional momentum.

Nifty Open Interest Concentration (Monthly)

• Bank Nifty exhibits a bearish undertone following substantial short accumulation. Key options activity reflects a downward shift in support to 56,000, while heavy resistance caps gains between 57,000 and 59,000, reinforcing a constrained range with prevailing downside pressure.

• Speaking of open interest changes, the 57,000-strike Call and 54,000 strike Put saw the maximum addition, alongside the 56,500 strike Call and 54,500 strike Put.

• Bank Nifty futures are poised for range-bound consolidation between 55,000 and 58,000, heavily anchored around the 57,500 pivot.

Bank Nifty Open Interest Concentration (Monthly)

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