FII Activity: Bearish Sentiment in Bank Nifty Index Futures with Short Covering
Foreign Institutional Investors (FIIs) maintained a bearish stance in the Bank Nifty Index Futures market, actively shorting 2,376 contracts worth ₹347 crore. However, this activity led to a net open interest decrease of 5,350 contracts, indicating short covering rather than aggressive fresh short positions.
Key Takeaways from FII Activity
✔ Net Shorting of 2,376 contracts suggests FIIs remain cautious on Bank Nifty.
✔ Decrease in Open Interest (-5,350 contracts) indicates that positions were squared off rather than fresh short buildup.
✔ Short covering could signal a potential reversal if price action confirms strength.
Bank Nifty broke above the Venus Retrograde High and Inside Bar High, confirming bullish momentum. As long as price holds the 48,350–48,400 zone, bulls remain in control.
Key Factors Supporting the Rally
✔ Technical Breakout: Inside Bar breakout + Venus Retrograde high breach = Bullish confirmation.
✔ RBI Announces ₹1.9 Lakh Crore Liquidity Infusion → Strong liquidity support for banking stocks.
✔ Jupiter-Mercury Aspect Today → Historically linked to major trend shifts, as discussed in the video below.
Key Levels to Watch
Support: 48,350–48,400 → Bulls must defend this zone.
Upside Target: 49,000 (first resistance), 49,500 (next breakout level).
Further Rally Potential: If price holds 48,400, we could see a 500-point upmove.
Failure to hold 48,350 could invite profit booking towards 48000
Bank Nifty made a low of 48,300 and closed above 48,350, as discussed yesterday. The index is now closing above the Venus Retrograde and Mars Ingress high, reinforcing bullish momentum.
Key Factors Supporting Bulls
✔ Technical Strength: Price reclaimed key support and is holding above crucial astro levels.
✔ Weekly Close Tomorrow: Bulls need a close above 48,900–49,000 to form a weekly hammer, setting up a bullish tone for next week.
✔ Bearish Trigger Below 48,300: If price closes below this level, bears could regain control.
Key Levels to Watch for Weekly Close
Bullish Confirmation: Above 48,900–49,000 → Could lead to upside continuation next week.
Bearish Breakdown: Below 48,300 → Could invite renewed selling pressure.
Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 48716 for a move towards 48934/49153/49372.Bears will get active below 48497 for a move towards 48278/48060.
Traders may watch out for potential intraday reversals at 10:32,11:45,12:31,01:22,02:23 How to Find and Trade Intraday Reversal Times
Bank Nifty March Futures Open Interest Volume stood at 28.3 lakh, with liquidation of 1.5 lakh contracts. Additionally, the Increase in Cost of Carry implies that there was a closeure of SHORT positions today.
Bank Nifty Advance Decline Ratio at 09:03 and Bank Nifty Rollover Cost is @49026 closed Below it.
Bank Nifty Gann Monthly Trade level :48478 closed below it.
Bank Nifty closed below 20 SMA @49096,Trend is Buy on Dips once above 48500.
Traders who follow the musical octave trading path may find valuable insights in predicting Bank Nifty’s movements. According to this path, Bank Nifty may follow a path of 51408-49965-48521-47159. This means that traders can take a position and potentially ride the move as Bank Nifty moves through these levels. Of course, it’s important to keep in mind that trading is inherently risky and market movements can be unpredictable.
According to the Bank Nifty options chain, the call side has the highest open interest (OI) at the 49000 strike, followed by the 49500 strike. On the put side, the 48500 strike has the highest OI, followed by the 48000 strike.This indicates that market participants anticipate Bank Nifty to stay within the 48000-49000 range.
The Bank Nifty options chain shows that the maximum pain point is at 48500 and the put-call ratio (PCR) is at 0.85. Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound. PCR is on extreme end suggesting we can see sharp reversal .
Trading can be a lot of fun, but it’s important to remember that it’s also a business. Don’t get too caught up in the excitement and lose sight of your goals. Have fun and enjoy the ride.
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 48668. Going Long Or Short Above Or Below This Level Can Help Them Stay On The Same Side As Institutions, With A Higher Risk-reward Ratio. Intraday Traders Can Keep An Eye On 48759, Which Acts As An Intraday Trend Change Level.
BANK Nifty Intraday Trading Levels
Buy Above 48666 Tgt 48862, 49000 and 49128 ( BANK Nifty Spot Levels)
Sell Below 48555 Tgt 48341, 48212 and 48049 (BANK Nifty Spot Levels)
Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.
As always, it’s essential to closely monitor market movements and make informed decisions based on a well-thought-out trading plan and risk management strategy. Market conditions can change rapidly, and it’s crucial to be adaptable and cautious in your approach.
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