FII Data Signals Caution – Nifty's Next Move Explained ,June 5

📊 Nifty 50 Intraday Market Outlook – 5 June 2025

📉 FII Activity Overview

• Index Futures: Strong Bearish (-1,031 Cr net OI) – FIIs are aggressively shorting the index futures, signaling caution in the near term.
• Index Options: Mixed Sentiment – They are mildly bullish in NIFTY options but neutral elsewhere, indicating a hedging bias rather than outright directional bets.
• Stock Futures: Indecisive – No strong positioning, suggesting focus remains on index-level strategies.

🔺 Interpretation:

FIIs continue to show skepticism by holding short positions in futures, despite mild optimism in options. This imbalance hints at a possible range-bound to slightly bearish bias unless strong buying comes in at key support levels (24,500/24,226).

🧭 Strategy Note:

Watch for any reversal in FII futures positioning. If shorts start unwinding near support, it could trigger a sharp upside move. Use this data in combination with technical chart breakouts for high-probability trades.

🔸 Overall Market Trend

Based on FII/DII data and chart structure, the market trend is neutral to mildly bullish. FIIs show strong bearish positions in Index Futures but mild bullish sentiment in NIFTY Index Options. DII and PRO traders are moderately bullish, especially in Index Futures.

🔍 Technical Chart Analysis

• Spot Price: 24,620
• Structure: Market created a BOS (Break of Structure) from the previous demand zone near 24,226. A higher low is formed, indicating demand building up.
• Key Levels:
• Support: 24,460 (PDL), 24,226 (Demand Zone)
• Resistance: 24,857 (PDR), 25,000–25,050 (Major Supply Zone)

📈 Option Chain Analysis (Exp: 6 June 2025)

• Spot Price: 24,620
• PCR: 0.60 (Bearish Bias, but potential short covering if breaks resistance)
• Max Pain: 24,600
• Support: 24,500 (High OI in Puts)
• Resistance: 24,700–24,800 (Heavy OI in Calls)

💡 Intraday Trade Setup

Bias: Rangebound to mildly bullish (watch for breakout above 24,700)

📌 Entry Ideas:

• CE Buy: On breakout and 15-min candle close above 24,700
• PE Buy: On breakdown and close below 24,500

🎯 Targets:

• CE Target: 24,850 / 25,000
• PE Target: 24,400 / 24,226

⛔ Stop Loss:

• For CE: Below 24,620
• For PE: Above 24,620

🧠 Conclusion

Market is consolidating between 24,500–24,700. Watch for a directional breakout. FII bearishness in futures is countered by support from DII and PRO. Wait for confirmation before taking trades near breakout levels.

Trade safe and follow proper risk management. RTS Group – Market Insight for Every Trader.