Weekly Derivative Outlook: Remain Bearish With Stop Loss of 24000 Levels

Immediate Support Is Placed In The Vicinity Of 22800‑22500 Levels Followed by 22000.

Derivative data continue to suggest a bearish outlook for the Nifty in the coming week. This view is predicated on the back of short build in Nifty Futures, fall in Nifty Open Interest Put Call ratio on the back of Call writing at 23500‑24000 levels and continuation of short build by FIIs in the Index & Stock futures segment.

Therefore, our advise is to remain bearish and create shorts on any rise with SL of 24000 levels.

On the downside, Nifty is likely to encounter an immediate support in the vicinity of 22800‑22500 levels, where we have seen put writing in the weekly expiry. Any close below 22500 level might result into further buildup of short positions / long unwinding which might drag Nifty to 22000.

Bank Nifty Outlook

Remain bearish Till Bank Nifty Closes Above 55000 Level

Aggressive short build‑up has been observed in Bank Nifty futures, with a 14.33% rise in open interest coinciding with a 7% decline over the past week. In the option segment we have seen aggressive call writing at 55000 level, suggesting strong resistance.

Hence, we recommend maintaining a bearish stance until the index decisively closes above 55000. On the downside, put writing was seen at 53500‑53000 levels which may act as immediate support.

Any close below 53000 level would result into further short build / long unwinding which could potentially drag the Bank Nifty towards next support of 52500‑52000 levels.