The futures and options market (F&O) setup for Wednesday, 27 November, suggests a continuation of range-bound movement in the Nifty with caution setting in after state election results euphoria. Foreign institutional investors (FIIs) have reduced their long positions in index futures, with a dip in the long-short ratio to 34.89 from Tuesday’s 36.74.
Nifty faces immediate resistance at 24,350–24,400, while holding above the critical support level of 24,100 will be essential to avoid a deeper correction.
Nifty futures indicate long unwinding, options suggest a tight range
The Nifty index traded in a narrow 217-point range on Tuesday, closing with a marginal decline of 0.11 percent at 24,194.50. Nifty November futures fell 0.23 percent. The cumulative open interest (OI) across current, next, and far-month series fell 1.64 percent, showing long unwinding.
Sudeep Shah, Head of Technical & Derivatives Research at SBICAP Securities, highlighted, “The 100-day EMA zone of 24,320–24,350 continues to act as a key resistance for the index. A breakout above 24,350 could push the Nifty towards 24,550 in the short term. On the downside, support at 24,100 is critical, with the next cushion at 23,980.”
Options data also indicates a tight range, with significant call writing at the 24,300 and 24,400 strikes and strong put writing at 24,100 and 24,000 strikes. The put-call ratio (PCR) for the November series slipped to 0.95 from 1.03. This shows traders are now turning cautious with the post-state election results momentum fading.
Market indicators and sectoral performance
The volatility index, India VIX, remained flat at 15.3 on Tuesday, suggesting subdued market volatility. Support for VIX is seen at 14–13.8, with resistance at 16.8–17. Sectorally, Nifty IT, PSU Bank, Realty, and Financial Services are expected to outperform in the short term, said Sudeep Shah.
FII / DII activity: Long positions ease
FIIs turned net sellers in index futures on Tuesday, with the long-short ratio declining to 34.89 from 36.74. FIIs sold 14,377 index futures and 2,351 stock futures, reflecting a cautious stance. On the options front, FIIs sold 33,268 call contracts while buying 55,579 put contracts, further indicating a bearish tilt.
Despite this, FIIs net bought Rs 1,157.7 crore in equities, while domestic institutional investors (DIIs) sold Rs 1,910.86 crore.
Nifty outlook for today
The Nifty’s ability to hold above the 24,100 support level will be crucial for maintaining buyer strength. Conversely, traders are watching the 24,350–24,400 resistance zone closely for a breakout, which could trigger short-covering and drive the index towards 24,550.
“On the downside, immediate support is positioned at 24,100, with a clear move beyond either of these levels expected to determine the index’s next trend,” said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities. He added that “a breach below 24,100 might push the index to test 23,900.” Sudeep Shah said that “if the index slips below the level of 24100, then the next support is placed at 23980 level.”
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