FIIs build bullish bets as Nifty hovers above 24,200, shows F&O positioning; check support, resistance

Nifty faces immediate resistance at 24,350, while the support is at 24,200.

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26 Aug, 2025 12:21

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The futures and options (F&O) market setup for Tuesday, 26 November, showed a continuation of bullish momentum as foreign institutional investors (FIIs) increased their preference for long positions, with a rise in the long-short ratio to 36.74 from Monday’s 33.58. However, the Nifty index faces immediate resistance at the 24,350 level, while support zones are seen at 24,200 and 24,100.

Nifty futures show long build-up, options signal key levels

Nifty November futures saw a 1.62 percent surge in open interest (OI) on Monday, indicating a long build-up as the index closed at 24,222. Analysts said there was a sustained bullish activity in derivatives, with cumulative OI across current, next, and far-month series rising 2.37 percent, further indicating long positions.

Sudeep Shah, Head of Technical & Derivatives Research at SBICAP Securities, said, “The 100-day EMA zone of 24,320–24,350 is an immediate hurdle for Nifty. A breakout above 24,350 could push the index towards 24,550 in the short term.” On the downside, Nifty has immediate support at 24,130–24,100, with a further cushion at 23,980.

Also read | FIIs turn net buyers after 38 consecutive sessions, buy shares worth Rs 9,948 crore

Options data shows significant call OI at the 24,300 and 24,400 strikes, marking these levels as resistance. Meanwhile, heavy put writing at 24,200 and 24,000 establishes these strikes as strong support zones. The put-call ratio (PCR) for the November series is at 1.03, showing a balanced but slightly bullish sentiment.

Bank Nifty: Focus on resistance at 52,500

Bank Nifty surged over 2 percent on Monday, outperforming the broader market. The banking index futures saw a 17.6 percent drop in cumulative OI across series, signalling a robust short-covering rally. Immediate resistance is seen at 52,450–52,500; a breakout may potentially drive the banking index to 52,900. Support lies at 51,800 and 51,700.

Shivangi Sarda, Derivatives & Quantitative Research Analyst at Motilal Oswal Financial Services, said there was a significant call OI at the 54,000 strike, and put OI at the 51,000 strike. The Bank Nifty PCR stands at 1.28, showing a very strong bullish bias.

Market indicators and sectoral outlook

India VIX fell 5 percent on Monday to settle at 15.3, indicating reduced market volatility. Support for VIX is seen at 14–13.8, with resistance at 16.8–17. Sectorally, Nifty PSU Bank has rebounded 10 percent in three sessions. Nifty IT and Nifty Realty are also expected to maintain outperformance in the short term, according to analysts.

FII / DII activity highlights bullish bias

FIIs purchased Rs 9,947.55 crore worth of equities on Monday, while DIIs sold to the tune of 6907.97 cr. FIIs' long-short ratio in index futures rose to 36.74 from 33.58, reflecting increased long positions. On the stock futures front, FIIs bought 69,861 contracts, further solidifying bullish sentiment.

Outlook for today

With FIIs strengthening their long positions and Nifty’s support at 24,200, traders are closely watching the 24,350 level for a breakout. Sustained movement above this resistance could drive the index higher, while any breach of immediate support levels may trigger a corrective move.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.