Nifty Futures Witness Marginal Short Build-Up | Put-Call Ratio (PCR) Declines

Nifty Faces Mild Decline Amid Short Build-Up & Reduced PCR

The Indian stock market saw a muted session as Nifty spot settled at 22,397.2, losing 0.33%, while Nifty March futures closed at 22,444.25, down 0.38%, maintaining a 47.05-point premium. Despite the decline, the March expiry future trading at a premium signals an absence of panic, although the basis was reduced by 12.8 points, hinting at shifting market sentiment.

Nifty Futures Open Interest & Volume Analysis

A 0.72% rise in combined Nifty Futures open interest (March, April & May), coupled with a negative futures closing and a reduction in basis, suggests short build-up in the market. Additionally, a 17.7% drop in combined Nifty future volume indicates a decrease in overall trading activity, pointing towards cautious participation from traders.

Nifty Put-Call Ratio (PCR) Insights:

Nifty March PCR: 0.95 (down from 0.99)

Nifty April PCR: 1.22 (down from 1.26)

Nifty May PCR: 1.24 (up from 1.20)

Nifty Total PCR (all expiries): 0.87 (down from 0.96)

The decline in total PCR suggests a rise in call writing or put unwinding, signaling a slightly bearish undertone in the near term.

FII & DII Activity: Diverging Market Positions

In the cash market, FIIs net sold ₹792.9 Cr, whereas DIIs provided strong support with net buying of ₹1,723.8 Cr, helping cushion the market.

FII activity in Nifty futures showed signs of short build-up, while Bank Nifty futures witnessed fresh buying, indicating a sectoral divergence.

FII Index Future Open Interest Long Ratio improved to 18.82% (from 17.9%), indicating selective long positions.

FII Index Future Volume Long Ratio surged to 49.19% (from 43.39%), suggesting increased participation in futures trading.

FII Trading statistics in Cash & Derivative Markets

FII Trading Stats	13.03.25	12.03.25	11.03.25	10.03.25	7.03.25
FII Cash (Provisional Data)	-792.9	-1,627.6	-2,823.8	-485.4	-2,035.1
Index Future Open Int Long Ratio	18.82%	17.90%	18.34%	18.15%	18.47%
Index Future Volume Long Ratio	49.19%	43.39%	50.69%	45.35%	47.53%
Index Call Open Interest Long Ratio	56.57%	57.10%	58.85%	57.47%	58.07%
Index Call Volume Long Ratio	48.99%	49.80%	50.52%	50.12%	50.42%
Index Put Open Interest Long Ratio	62.37%	60.98%	62.17%	61.67%	61.68%
Index Put Volume Long Ratio	49.33%	49.89%	50.66%	50.16%	50.58%
Stock Future OI Long Ratio	63.39%	63.73%	63.68%	63.80%	63.93%
Stock Future Volume Long Ratio	46.58%	50.79%	49.79%	48.04%	47.40%
Index Futures	Fresh Short	Fresh Short	Fresh Long	Long Covering	Fresh Short
Index Options	Long Covering	Fresh Short	Fresh Long	Fresh Long	Fresh Long
Nifty Futures	Fresh Short	Fresh Short	Fresh Long	Long Covering	Fresh Short
Nifty Options	Long Covering	Fresh Short	Fresh Long	Fresh Long	Fresh Long
BankNifty Futures	Fresh Long	Short Covering	Fresh Short	Fresh Short	Fresh Short
BankNifty Options	Fresh Long	Fresh Short	Long Covering	Fresh Long	Fresh Short
FinNifty Futures	Long Covering	Fresh Long	Short Covering	Short Covering	Short Covering
FinNifty Options	Fresh Short	Long Covering	Fresh Short	Fresh Short	Fresh Short
MidcpNifty Futures	Fresh Short	Fresh Long	Short Covering	Fresh Short	Fresh Short
MidcpNifty Options	Fresh Short	Long Covering	Fresh Long	Fresh Long	Fresh Short
NiftyNxt50 Futures	Long Covering	Short Covering	Short Covering	Short Covering	Short Covering
NiftyNxt50 Options	Long Covering	Fresh Short	Fresh Short	Fresh Long	Fresh Long
Stock Futures	Long Covering	Short Covering	Fresh Long	Long Covering	Long Covering
Stock Options	Fresh Short	Fresh Short	Fresh Short	Fresh Short	Fresh Short

Major Indices | Options Insights

SENSEX Weekly Expiry (18.03.2025) | Range within 75000 – 72000

The SENSEX spot closed at 73828.91(-0.27%). The SENSEX weekly expiry for March 18, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 0.762 against previous 0.840. The 72000 PE option holds the maximum open interest, followed by the 76000 CE and 75000 CE options. Market participants have shown increased interest with significant open interest additions in the 72000 PE option, with open interest additions also seen in the 74700 CE and 75000 CE options. On the other hand, open interest reductions were prominent in the 77300 CE,70400 PE, and 70300 PE options. Trading volume was highest in the 74000 PE option, followed by the 74000 CE and 74500 CE options, indicating active trading in these strikes.

SENSEX	Weekly	Expiry:	18-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
73828.91	0.762	0.840	0.996
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	1,24,49,860	60,99,629	63,50,231
PUT:	94,85,920	51,24,660	43,61,260
Top CALL Open Interest:
Strike	OI	OI Change	Volume
76000	10,51,280	4,50,320	59,98,960
75000	7,59,260	5,04,380	94,71,860
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
74700	6,28,260	5,49,940	47,15,000
75000	7,59,260	5,04,380	94,71,860
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
77300	48,720	-13,900	2,38,760
77400	67,260	-1,480	3,08,360
Top CALL Volume:
Strike	OI	OI Change	Volume
74000	5,48,720	2,82,840	1,04,18,700
74500	4,50,180	2,39,400	94,90,900
Top PUT Open Interest:
Strike	OI	OI Change	Volume
72000	12,80,440	7,30,700	69,85,340
71000	5,68,360	2,05,740	31,46,700
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
72000	12,80,440	7,30,700	69,85,340
72700	5,13,700	4,51,880	31,29,400
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
70400	9,320	-13,300	1,96,200
70300	7,640	-11,300	1,89,160
Top PUT Volume:
Strike	OI	OI Change	Volume
74000	3,23,080	78,360	1,27,55,600
73000	4,15,480	2,38,600	73,21,540

NIFTY Monthly Expiry (27.03.2025) | Range within 22500 – 22000

The NIFTY spot closed at 22397.2(-0.33%). The NIFTY monthly expiry for March 27, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 0.953 against previous 0.986 . The 22000 PE option holds the maximum open interest, followed by the 31000 CE and 22500 PE options. Market participants have shown increased interest with significant open interest additions in the 22500 CE option, with open interest additions also seen in the 23000 CE and 22500 PE options. On the other hand, open interest reductions were prominent in the 22000 PE, 22600 PE, and 21500 PE options. Trading volume was highest in the 22500 PE option, followed by the 22500 CE and 23000 CE options, indicating active trading in these strikes.

NIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
22,397.20	0.953	0.986	0.894
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	6,78,80,350	6,55,57,600	23,22,750
PUT:	6,47,05,850	6,46,08,325	97,525
Top CALL Open Interest:
Strike	OI	OI Change	Volume
31,000	68,05,650	-9,100	11,424
23,000	62,90,875	3,53,200	1,21,531
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
22,500	59,25,075	6,25,200	1,25,376
23,000	62,90,875	3,53,200	1,21,531
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
23,200	11,03,475	-1,28,400	34,171
23,900	6,65,850	-1,00,950	12,306
Top CALL Volume:
Strike	OI	OI Change	Volume
22,500	59,25,075	6,25,200	1,25,376
23,000	62,90,875	3,53,200	1,21,531
Top PUT Open Interest:
Strike	OI	OI Change	Volume
22,000	79,76,900	-2,24,575	97,008
22,500	63,87,675	3,17,400	1,28,656
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
22,500	63,87,675	3,17,400	1,28,656
21,900	8,33,850	1,72,800	26,906
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
22,000	79,76,900	-2,24,575	97,008
22,600	16,28,100	-2,06,550	35,982
Top PUT Volume:
Strike	OI	OI Change	Volume
22,500	63,87,675	3,17,400	1,28,656
22,000	79,76,900	-2,24,575	97,008

BANKNIFTY Monthly Expiry (27.03.2025) | Range within 48000 – 50000

The BANKNIFTY spot closed at 48060.4(+0.01%). The BANKNIFTY monthly expiry for March 27, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 0.936 against previous 0.975. The 49000 CE option holds the maximum open interest, followed by the 40500 PE and 50000 CE options. Market participants have shown increased interest with significant open interest additions in the 45000 PE option, with open interest additions also seen in the 50100 CE and 48000 CE options. On the other hand, open interest reductions were prominent in the 44500 PE, 52000 CE, and 43000 PE options. Trading volume was highest in the 48000 PE option, followed by the 48200 CE and 48200 PE options, indicating active trading in these strikes.

BANKNIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
48,060.40	0.936	0.975	0.944
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	2,58,84,990	2,46,12,795	12,72,195
PUT:	2,42,23,215	2,39,97,990	2,25,225
Top CALL Open Interest:
Strike	OI	OI Change	Volume
49,000	19,32,300	92,190	1,68,893
50,000	15,38,400	61,590	1,44,163
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
50,100	3,20,340	1,91,850	29,733
48,000	9,87,330	1,87,140	1,92,351
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
52,000	12,73,770	-3,00,660	92,212
55,000	3,55,650	-43,080	11,303
Top CALL Volume:
Strike	OI	OI Change	Volume
48,200	4,30,230	1,32,540	2,42,881
48,500	12,43,110	15,510	2,02,548
Top PUT Open Interest:
Strike	OI	OI Change	Volume
40,500	17,55,150	1,71,180	70,931
48,000	15,34,755	87,660	2,59,303
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
45,000	12,88,380	1,99,800	1,23,339
40,500	17,55,150	1,71,180	70,931
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
44,500	5,12,190	-3,24,060	90,418
43,000	3,59,370	-1,07,970	24,018
Top PUT Volume:
Strike	OI	OI Change	Volume
48,000	15,34,755	87,660	2,59,303
48,200	5,11,740	69,930	2,36,951

FINNIFTY Monthly Expiry (27.03.2025) | Range within 24500 – 22000

The FINNIFTY spot closed at 23290(-0.16%). The FINNIFTY monthly expiry for March 27, 2025, has revealed key trends in open interest. The current Put/Call Ratio is at 1.161 against previous 1.207. The 19500 PE option holds the maximum open interest, followed by the 24500 CE and 22000 PE options. Market participants have shown increased interest with significant open interest additions in the 24500 CE option, with open interest additions also seen in the 23500 CE and 21600 PE options. On the other hand, open interest reductions were prominent in the 23000 PE, 23400 CE, and 23300 PE options. Trading volume was highest in the 23400 CE option, followed by the 23500 CE and 24000 CE options, indicating active trading in these strikes.

FINNIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
23,290.00	1.161	1.207	0.920
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	18,58,415	17,81,325	77,090
PUT:	21,58,520	21,50,265	8,255
Top CALL Open Interest:
Strike	OI	OI Change	Volume
24,500	1,92,075	19,305	3,041
23,800	1,63,930	390	2,922
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
24,500	1,92,075	19,305	3,041
23,500	1,34,940	19,175	5,882
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
23,400	58,955	-14,365	6,084
23,200	71,370	-8,645	1,153
Top CALL Volume:
Strike	OI	OI Change	Volume
23,400	58,955	-14,365	6,084
23,500	1,34,940	19,175	5,882
Top PUT Open Interest:
Strike	OI	OI Change	Volume
19,500	2,81,060	-3,770	1,537
22,000	1,81,025	17,160	4,073
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
21,600	52,455	18,785	1,280
22,000	1,81,025	17,160	4,073
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
23,000	1,39,555	-18,850	3,735
23,300	72,410	-10,205	4,285
Top PUT Volume:
Strike	OI	OI Change	Volume
23,400	31,330	-130	4,625
23,300	72,410	-10,205	4,285

MIDCPNIFTY Monthly Expiry (27.03.2025) | Range within 11000 – 10500

The MIDCPNIFTY spot closed at 10823.95(-0.8%). The MIDCPNIFTY monthly expiry for March 27, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 1.000 against previous 1.028. The 10000 PE option holds the maximum open interest, followed by the 11000 CE and 10500 PE options. Market participants have shown increased interest with significant open interest additions in the 12000 CE option, with open interest additions also seen in the 10700 PE and 11000 CE options. On the other hand, open interest reductions were prominent in the62000 CE, 61000 CE, and 59500 PE options. Trading volume was highest in the 11000 CE option, followed by the 10900 PE and 10900 CE options, indicating active trading in these strikes.

MIDCPNIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
10,823.95	1.000	1.028	0.830
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	92,77,560	85,94,760	6,82,800
PUT:	92,79,840	88,32,969	4,46,871
Top CALL Open Interest:
Strike	OI	OI Change	Volume
11,000	8,66,160	1,27,920	23,201
11,500	8,62,320	79,560	12,563
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
12,000	7,91,400	1,61,040	9,980
11,000	8,66,160	1,27,920	23,201
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
12,200	2,93,040	-67,320	1,960
11,800	3,69,960	-36,840	6,546
Top CALL Volume:
Strike	OI	OI Change	Volume
11,000	8,66,160	1,27,920	23,201
10,900	6,44,520	57,000	20,420
Top PUT Open Interest:
Strike	OI	OI Change	Volume
10,000	9,75,480	61,080	7,698
10,500	8,63,520	90,000	13,181
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
10,700	5,61,360	1,31,280	9,123
9,900	2,70,840	99,000	4,337
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
10,800	4,94,280	-54,480	13,210
9,500	2,83,800	-47,640	1,947
Top PUT Volume:
Strike	OI	OI Change	Volume
10,900	6,36,360	46,800	22,762
11,000	6,86,760	-35,280	14,365

Key Takeaways & Market Outlook

Bears Take Control, But a Pullback Rally May Be on the Horizon

The Indian stock market is witnessing increased bearish activity, with a high level of short positions in the system. However, this also opens the door for a potential pullback rally as traders look to cover their positions. Short build-up signs in Index futures suggest caution, but the lack of panic selling keeps downside risks limited. DII buying provided stability, offsetting FII selling in the cash market.

According to options data, Nifty faces strong resistance between 22,500 and 23,000, where heavy call writing has been observed. This range could act as a barrier for further upside unless significant buying emerges.

Signs of a Possible Pullback

A crucial indicator of a potential reversal is the heavy open interest build-up at the 22,500 PUT strike. This suggests that market participants are expecting a pullback towards this level, increasing the chances of a bounce-back above 22,500 if short-covering begins.

Traders should closely monitor market sentiment and institutional activity for confirmation of a pullback rally. Stay tuned for more market insights!