FII Activity Update – Bank Nifty Index Futures | 03 June 2025
Foreign Institutional Investors (FIIs) continued to maintain a bearish stance in the Bank Nifty Index Futures segment on 03 June 2025, signaling caution ahead of high-impact domestic and global triggers.
Key Data Highlights
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Contracts Shorted: 3,500
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Total Value: ₹589 crore
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Net Open Interest (OI) Change: Increased by 2,180 contracts
The rise in open interest along with fresh short positions indicates that FIIs are building new bearish bets, likely in anticipation of event-driven volatility.
Strategic Implications
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The increased short positioning reflects hedging or directional bearishness, potentially ahead of:
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RBI Monetary Policy outcome
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US macroeconomic data
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Currency and bond market volatility
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FIIs’ risk-averse behavior in the banking space could also be influenced by elevated valuations, uncertainty over liquidity measures, or global yield curve shifts.
Market Outlook
With Bank Nifty trading near all-time highs and macro catalysts lined up, traders should brace for increased intraday volatility. Watch for:
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Breakdown below key support zones (e.g., 55,349) to validate FII bearish signals.
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Reclaim of 55,889+ as a trigger for short-covering and reversal.
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Bank Nifty made a fresh all-time high in today’s session but failed to close above the previous day’s high, which coincides with the Eclipse Echo level — a critical price zone discussed in the video analysis shared earlier.
Key Astro-Gann Observation: June 4th
Tomorrow, 04 June, marks an important Gann Anniversary Date — the same date when Bank Nifty fell nearly 10% during the 2024 Lok Sabha election result. This historical time cycle adds weight to the setup for a potential trend reversal or breakout, depending on how price action unfolds around key levels.
⚠️ Crucial Levels to Watch
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Bullish Continuation Only Above: 55,889
A daily close above this level could resume momentum and push price into discovery mode with higher targets. -
Bearish Trigger Below: 55,349
A break below this support could confirm a double top formation, inviting a swift downside move.
Technical Outlook
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Today’s candle, despite making a new high, reflects indecision and selling at higher levels.
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With astro events and Gann time cycles aligning, volatility is expected to rise sharply over the next 1–2 trading sessions.
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Momentum traders should watch for a decisive breakout or breakdown around the above levels.
Trading Strategy
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Above 55,889: Look for long entries with targets of 56,300–56,666.
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Below 55,349: Prepare for short setups with targets of 54,800–54,467.
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Avoid aggressive overnight positions ahead of key political dates and external macro developments.
Traders may watch out for potential intraday reversals at 09:31,10:27,11:50,01:38,02:38 How to Find and Trade Intraday Reversal Times
Bank Nifty May Futures Open Interest Volume stood at 19.5 lakh, with addition of 1 lakh contracts. Additionally, the Increase in Cost of Carry implies that there was a addition of SHORT positions today.
Bank Nifty Advance Decline Ratio at 03:09 and Bank Nifty Rollover Cost is @55480 closed below it.
Bank Nifty Gann Monthly Trade level :54467 closed above it.
Bank Nifty closed ABOVE its 20 SMA @55163,Trend is Buy on Dips till above 55200
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 53548-55141-56734. 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 56000 strike, followed by the 56500 strike. On the put side, the 55500 strike has the highest OI, followed by the 55000 strike.This indicates that market participants anticipate Bank Nifty to stay within the 55000-56000 range.
The Bank Nifty options chain shows that the maximum pain point is at 55600 and the put-call ratio (PCR) is at 0.83 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 .
Those who succeed big at anything all have the same attitude: You keep going until it happens or you die trying. Quitting is not an option.
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 55950. 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 56038, Which Acts As An Intraday Trend Change Level.
BANK Nifty Intraday Trading Levels
Buy Above 55666 Tgt 55800, 56000 and 56222 (BANK Nifty Spot Levels)
Sell Below 55555 Tgt 55400, 55222 and 55008 (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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