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The Week That Was:

* Nifty futures closed at 25,905.5 on Friday with a decline of 0.2% or 46.5 points, while open interest surged 184.6% as 117.63 lakh contracts were added, taking the total to 181.34 lakh, indicating a clear Short Build Up and reflecting a cautious trading             sentiment.

* Bank Nifty futures settled at 58,184.6 with a gain of 0.3% or 183.8 points, while open interest rose 94.2% as 9.04 lakh contracts were added, taking the total to 18.76 lakh, indicating a Long Build Up and reflecting a mildly bullish trading sentiment.

* India VIX rose 4.8%, climbing from 11.59% to 12.15%, indicating a slight uptick in market volatility and a cautious undertone in trader sentiment.

* The FII Long-Short ratio declined from 0.33 to 0.19, reflecting unwinding in both long and short positions, with a sharper reduction in longs, signaling a weakening market sentiment.

Nifty Open Interest Put-Call Ratio

Volatility Analysis

* The current Implied Volatility (IV) skew shows elevated IV across Out-ofthe-Money (OTM) Calls and Puts, reflecting a market consensus for increased realized volatility and broader price swings this week.

* The expanding slope of the volatility term structure, which suggests increased speculative and tail-risk hedging demand, ultimately supports an overall expectation of a wider range in market.

Nifty Open Interest Concentration (Monthly)

* The strike-concentration for the current weekly expiry shows that the Nifty has strong supports at 25,500 and 25,300, while resistance can be seen near 26,000 and 26,200.

* Speaking of open interest changes, the 26,000-strike Call and 26,000 strike Put saw the maximum addition, alongside the 26,200 strike Call and 25,500 strike Put.

* Based on the data, we project the Nifty to trade between 25,300 and 26,000 in the week ahead.

Bank Nifty Open Interest Concentration (Monthly)

* The strike concentration for the current monthly expiry shows that the Bank Nifty has strong supports at 57,000, 57,500, and 56,000, while resistance rests at 58,000, 58,500, and 59,000.

* Speaking of open interest changes, the 58,500-strike Call and 58,000 strike Put saw the maximum addition, alongside the 58,000 strike Call and 58,500 strike Put.

* Based on the data, we project the Bank Nifty to trade between 56,500 and 58,500 in the coming week, with 57,000 & 58,000 acting as pivotal levels.

Nifty Change in Open Interest (Monthly)

* Using the monthly expiration cycle, notable addition in calls was seen at the following strikes - 26,000 (27.3 Lc), 26,500 (18.3 Lc), and 26,200 (13.6 Lc), respectively. There was no significant unwinding observed at any strike.

* Coming to puts, the 26,000 (25 Lc), 25,500 (17 Lc), and 26,200 strikes (15.3 Lc) saw considerable addition in open interest. Unwinding was witnessed at the 24,500 strike.

Bank Nifty Change in Open Interest (Monthly)

* For the Bank Nifty - based again on the monthly expiration cycle - notable addition in calls was seen at the following strikes - 58,000 (4.2 Lc), 58,500 (4.1 Lc), and 59,000 (3.9 Lc), respectively. There was no significant unwinding observed at any strike.

* Coming to puts, the 58,000 (9.5 Lc), 58,500 (2.6 Lc), and 57,500 strikes (1.7 Lc) saw considerable addition in open interest. There was no significant unwinding observed at any strike.

Weekly Participant-wise Open Interest (contracts)

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