Nifty Futures Witness Short Covering; What It Means for Traders as Put-Call Ratio (PCR) Rises

Nifty Gains 0.5% as Futures Premium Rises, Signalling Short-Covering Pressure

The Indian stock market witnessed a positive session, with Nifty spot closing at 22,508.75, up 0.5%. Meanwhile, Nifty March futures ended at 22,584.3, registering a 0.62% gain and maintaining a 75.55-point premium over the spot price.

The increase in futures premium by 28.5 points along with a 1.2% fall in the combined Nifty Futures open interest (March, April & May), suggests short-covering pressure. Additionally, a 5.8% rise in combined Nifty future volume indicates a increase in overall trading activity, pointing towards cautious approach from bears ahead of crucial FED interest rate decision due on Wednesday night.

For traders and investors, the premium expansion and overall positive close point towards potential near-term stability, but staying cautious amid evolving market trends is key.

Nifty Put-Call Ratio (PCR) Insights:

Nifty March PCR: 0.987 (up from 0.953)

Nifty April PCR: 1.228 (up from 1.217)

Nifty May PCR: 1.239 (up from 1.235)

The increase in PCR for all three Expiries suggests higher put writing and call unwinding, indicating that traders are building support at lower levels. This is typically a bullish sign as sellers of put options expect the market to stay strong above their strike prices.

Nifty Total PCR (all Expiries): 1.047 (up from 0.866)

The sharp jump from 0.866 to 1.047 could signal that the market is shifting from a bearish to a neutral-to-bullish stance.

FII & DII Cash Activity: Diverging Market Positions

In the cash market, FIIs net sold ₹ 4,488.45 Cr, whereas DIIs provided strong support with net buying of ₹ 6,000.60 Cr, helping cushion the market.

FII Index Future Positioning: Short Covering Ahead of FED Meeting:

FII activity in both Nifty & Bank Nifty futures showed signs of short-covering.

FII Index Future Open Interest Long Ratio improved to 20.17% (from 18.82%).

FII Index Future Volume Long Ratio surged to 71.26% (from 49.19%).

FII Trading statistics in Cash & Derivative Markets

FII Trading Stats	17.03.25	13.03.25	12.03.25
FII Cash (Provisional Data)	-4488.45	-792.9	-1,627.6
Index Future Open Interest Long Ratio	20.17%	18.82%	17.90%
Index Future Volume Long Ratio	71.26%	49.19%	43.39%
Call Option Open Interest Long Ratio	58.41%	56.57%	57.10%
Call Option Volume Long Ratio	50.79%	48.99%	49.80%
Put Option Open Interest Long Ratio	60.35%	62.37%	60.98%
Put Option Volume Long Ratio	50.11%	49.33%	49.89%
Stock Future Open Interest Long Ratio	63.87%	63.39%	63.73%
Stock Future Volume Long Ratio	55.68%	46.58%	50.79%
Index Futures	Short Covering	Fresh Short	Fresh Short
Index Options	Fresh Long	Long Covering	Fresh Short
Nifty Futures	Short Covering	Fresh Short	Fresh Short
Nifty Options	Fresh Long	Long Covering	Fresh Short
BankNifty Futures	Short Covering	Fresh Long	Short Covering
BankNifty Options	Long Covering	Fresh Long	Fresh Short
FinNifty Futures	Fresh Long	Long Covering	Fresh Long
FinNifty Options	Short Covering	Fresh Short	Long Covering
MidcpNifty Futures	Short Covering	Fresh Short	Fresh Long
MidcpNifty Options	Short Covering	Fresh Short	Long Covering
NiftyNxt50 Futures	Short Covering	Long Covering	Short Covering
NiftyNxt50 Options	Fresh Short	Long Covering	Fresh Short
Stock Futures	Fresh Long	Long Covering	Short Covering
Stock Options	Fresh Short	Fresh Short	Fresh Short

Major Indices | Options Insights

SENSEX Weekly Expiry (18.03.2025)

The SENSEX index closed at 74169.95. The SENSEX weekly expiry for March 18, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 0.949against previous 0.762. The72000 PE option holds the maximum open interest, followed by the75500 CE and 75000 CE options. Market participants have shown increased interest with significant open interest additions in the72500 PE option, with open interest additions also seen in the 75500 CE and 73000 PE options. On the other hand, open interest reductions were prominent in the72700 PE, 74000 CE, and 78000 CE options. Trading volume was highest in the 74000 PE option, followed by the74500 CE and 75000 CE options, indicating active trading in these strikes.

SENSEX	Weekly	Expiry:	18-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
74169.95	0.949	0.762	1.036
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	1,68,70,920	1,24,49,860	44,21,060
PUT:	1,60,03,200	94,85,920	65,17,280
Top CALL Open Interest:
Strike	OI	OI Change	Volume
75500	12,52,660	5,66,080	1,85,03,200
75000	12,44,040	4,84,780	5,66,05,280
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
75500	12,52,660	5,66,080	1,85,03,200
75000	12,44,040	4,84,780	5,66,05,280
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
74000	4,22,960	-1,25,760	2,78,75,360
78000	3,82,460	-93,620	25,62,760
Top CALL Volume:
Strike	OI	OI Change	Volume
74500	7,43,580	2,93,400	5,86,13,840
75000	12,44,040	4,84,780	5,66,05,280
Top PUT Open Interest:
Strike	OI	OI Change	Volume
72000	13,44,160	63,720	1,13,03,200
72500	10,95,780	7,46,440	1,62,30,080
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
72500	10,95,780	7,46,440	1,62,30,080
73000	9,55,620	5,40,140	4,02,48,540
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
72700	2,83,580	-2,30,120	1,24,75,200
70000	3,85,220	-85,000	33,54,900
Top PUT Volume:
Strike	OI	OI Change	Volume
74000	7,61,180	4,38,100	6,09,15,080
73500	7,11,840	5,03,120	5,19,61,220

NIFTY Weekly Expiry (20.03.2025):

The NIFTY index closed at 22508.75. The NIFTY weekly expiry for March 20, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 1.031 against previous 0.993. The 23500 CE option holds the maximum open interest, followed by the 23000 CE and 22000 PE options.  Market participants have shown increased interest with significant open interest additions in the 22500 PE option, with open interest additions also seen in the 22300 PE and 22850 CE options. On the other hand, open interest reductions were prominent in the 22400 CE, 22000 PE, and 20500 PE options. Trading volume was highest in the 22500 PE option, followed by the 22500 CE and 22600 CE options, indicating active trading in these strikes.

NIFTY	Weekly	Expiry:	20-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
22,508.75	1.031	0.993	1.009
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	12,22,59,300	7,53,59,250	4,69,00,050
PUT:	12,60,47,475	7,48,21,575	5,12,25,900
Top CALL Open Interest:
Strike	OI	OI Change	Volume
23,500	98,74,875	24,41,550	5,07,716
23,000	88,53,150	36,69,375	14,66,360
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
22,850	55,49,925	45,98,100	11,12,676
22,800	79,74,300	43,16,325	19,76,235
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
22,400	19,00,500	-14,96,475	8,97,618
24,200	2,34,900	-76,125	21,929
Top CALL Volume:
Strike	OI	OI Change	Volume
22,500	69,22,950	18,82,125	34,49,987
22,600	48,46,950	13,41,600	26,56,894
Top PUT Open Interest:
Strike	OI	OI Change	Volume
22,000	85,57,650	-7,42,650	15,72,506
22,500	83,98,725	53,21,700	38,26,211
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
22,500	83,98,725	53,21,700	38,26,211
22,300	73,45,200	49,25,850	19,12,490
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
22,000	85,57,650	-7,42,650	15,72,506
20,500	20,22,975	-7,20,975	1,59,057
Top PUT Volume:
Strike	OI	OI Change	Volume
22,500	83,98,725	53,21,700	38,26,211
22,400	56,36,100	23,64,075	23,60,776

NIFTY Monthly Expiry (27.03.2025)

The NIFTY index closed at22508.75. The NIFTY monthly expiry for March 27, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 0.987 against previous 0.953. 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 21500 PE option, with open interest additions also seen in the 20350 PE and 23200 CE options. On the other hand, open interest reductions were prominent in the 22500 CE, 22400 CE, and 24500 CE options. Trading volume was highest in the 22500 PE option, followed by the 22500 CE and 22000 PE options, indicating active trading in these strikes.

NIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
22,508.75	0.987	0.953	1.098
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	7,03,34,075	6,78,80,350	24,53,725
PUT:	6,93,94,800	6,47,05,850	46,88,950
Top CALL Open Interest:
Strike	OI	OI Change	Volume
31,000	69,53,000	1,47,350	12,825
23,000	65,81,400	2,90,525	1,53,296
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
23,200	15,11,775	4,08,300	53,916
23,100	12,03,000	3,56,100	49,220
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
22,500	56,27,475	-2,97,600	1,61,896
22,400	12,58,275	-1,66,650	47,028
Top CALL Volume:
Strike	OI	OI Change	Volume
22,500	56,27,475	-2,97,600	1,61,896
23,000	65,81,400	2,90,525	1,53,296
Top PUT Open Interest:
Strike	OI	OI Change	Volume
22,000	82,82,600	3,05,700	1,54,761
22,500	67,89,450	4,01,775	2,00,273
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
21,500	38,79,525	5,08,125	88,179
20,350	6,24,000	5,02,875	12,060
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
19,000	6,28,325	-81,150	4,928
21,800	13,37,400	-74,100	52,061
Top PUT Volume:
Strike	OI	OI Change	Volume
22,500	67,89,450	4,01,775	2,00,273
22,000	82,82,600	3,05,700	1,54,761

BANKNIFTY Monthly Expiry (27.03.2025)

The BANKNIFTY index closed at48354.15. The BANKNIFTY monthly expiry for March 27, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 1.031 against previous 0.935. The 49000 CE option holds the maximum open interest, followed by the 40500 PE and 48000 PE options. Market participants have shown increased interest with significant open interest additions in the 48500 PE option, with open interest additions also seen in the 48400 PE and 50400 CE options. On the other hand, open interest reductions were prominent in the 48000 CE, 52000 CE, and 48100 CE options. Trading volume was highest in the 48500 CE option, followed by the 48500 PE and 48400 PE options, indicating active trading in these strikes.

BANKNIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
48,354.15	1.031	0.935	0.997
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	2,48,32,305	2,58,84,990	-10,52,685
PUT:	2,55,89,790	2,42,08,674	13,81,116
Top CALL Open Interest:
Strike	OI	OI Change	Volume
49,000	18,96,540	-35,760	1,92,172
50,000	15,74,070	35,670	1,53,685
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
50,400	2,82,150	1,62,810	31,812
48,500	13,08,030	64,920	2,96,562
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
48,000	7,59,750	-2,27,580	1,12,131
52,000	11,12,250	-1,61,520	68,739
Top CALL Volume:
Strike	OI	OI Change	Volume
48,500	13,08,030	64,920	2,96,562
48,400	3,79,350	62,190	2,17,587
Top PUT Open Interest:
Strike	OI	OI Change	Volume
40,500	16,64,070	-91,080	59,447
48,000	16,03,905	69,150	2,18,366
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
48,500	9,86,760	3,16,380	2,45,870
48,400	4,82,010	2,03,790	2,43,562
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
40,500	16,64,070	-91,080	59,447
44,800	90,900	-71,220	10,439
Top PUT Volume:
Strike	OI	OI Change	Volume
48,500	9,86,760	3,16,380	2,45,870
48,400	4,82,010	2,03,790	2,43,562

FINNIFTY Monthly Expiry (27.03.2025)

The FINNIFTY index closed at23529.25. The FINNIFTY monthly expiry for March 27, 2025, has revealed key trends in open interest. The current Put/Call Ratio is at 1.342 against previous 1.161. The 19500 PE option holds the maximum open interest, followed by the 22000 PE and 24500 CE options. Market participants have shown increased interest with significant open interest additions in the 22000 PE option, with open interest additions also seen in the 23500 PE and 22500 PE options. On the other hand, open interest reductions were prominent in the 23800 CE, 23500 CE, and 22200 PE options. Trading volume was highest in the 23500 PE option, followed by the 23500 CE and 22000 PE options, indicating active trading in these strikes.

FINNIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
23,529.25	1.342	1.161	1.260
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	19,84,515	18,58,415	1,26,100
PUT:	26,62,920	21,58,520	5,04,400
Top CALL Open Interest:
Strike	OI	OI Change	Volume
24,500	1,99,420	7,345	6,097
24,000	1,65,555	47,905	7,825
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
24,000	1,65,555	47,905	7,825
24,400	73,645	30,680	2,951
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
23,800	1,35,915	-28,015	3,995
23,500	1,07,640	-27,300	10,719
Top CALL Volume:
Strike	OI	OI Change	Volume
23,500	1,07,640	-27,300	10,719
24,000	1,65,555	47,905	7,825
Top PUT Open Interest:
Strike	OI	OI Change	Volume
19,500	3,05,110	24,050	1,633
22,000	2,88,210	1,07,185	8,545
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
22,000	2,88,210	1,07,185	8,545
23,500	94,445	60,905	13,201
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
22,200	83,395	-18,200	2,165
21,500	1,41,310	-12,675	1,590
Top PUT Volume:
Strike	OI	OI Change	Volume
23,500	94,445	60,905	13,201
22,000	2,88,210	1,07,185	8,545

MIDCPNIFTY Monthly Expiry (27.03.2025)

The MIDCPNIFTY index closed at 10893.15. The MIDCPNIFTY monthly expiry for March 27, 2025 has revealed key trends in open interest. The current Put/Call Ratio is at 0.925 against previous 1.000. The 10000 PE option holds the maximum open interest, followed by the 11500 CE and 11000 CE options. Market participants have shown increased interest with significant open interest additions in the 11200 CE option, with open interest additions also seen in the 11600 CE and 11300 CE options. On the other hand, open interest reductions were prominent in the 60000 CE, 57000 PE, and 58000 CE options. Trading volume was highest in the 11200 CE option, followed by the 10900 CE and 10800 PE options, indicating active trading in these strikes.

MIDCPNIFTY	Monthly	Expiry:	27-03-2025
Index Spot	PCR OI	Prev PCR OI	PCR VOL
10,893.15	0.925	1.000	0.786
Total Open Interest Change in all CALLs & PUTs:
	Current	Prior	Net Ch
CALL:	1,02,53,520	92,77,560	9,75,960
PUT:	94,87,800	92,79,840	2,07,960
Top CALL Open Interest:
Strike	OI	OI Change	Volume
11,500	9,60,840	98,520	15,374
11,000	9,36,960	70,800	22,707
Top CALL Open Interest addition:
Strike	OI	OI Change	Volume
11,200	7,50,000	1,72,440	33,850
11,600	4,10,400	1,63,440	9,324
Top CALL Open Interest reduction:
Strike	OI	OI Change	Volume
12,500	1,96,560	-70,080	1,321
12,200	2,24,040	-69,000	2,547
Top CALL Volume:
Strike	OI	OI Change	Volume
11,200	7,50,000	1,72,440	33,850
10,900	7,04,640	60,120	27,341
Top PUT Open Interest:
Strike	OI	OI Change	Volume
10,000	10,34,760	59,280	15,937
10,500	8,73,600	10,080	16,921
Top PUT Open Interest addition:
Strike	OI	OI Change	Volume
10,700	6,46,680	85,320	9,272
9,900	3,49,680	78,840	7,550
Top PUT Open Interest reduction:
Strike	OI	OI Change	Volume
10,200	2,73,000	-1,57,680	8,011
9,700	1,67,040	-76,200	1,658
Top PUT Volume:
Strike	OI	OI Change	Volume
10,800	5,34,000	39,720	23,921
10,900	6,48,840	12,480	22,349

Short Covering in Nifty Futures Signals Potential Rebound

Signs of short covering in Nifty futures suggest a possible rebound, easing downside risks and hinting at a shift in market sentiment.

DII buying continues to provide stability, counteracting FII selling in the cash market and supporting the broader market trend.

The rise in PCR along with fall in Open Interest indicates short-covering pressure.

Meanwhile, FII index futures are witnessing short covering with higher volumes, signalling a potential shift from bearish to neutral or bullish positioning.

According to options data, Nifty faces strong resistance between 23,000 and 23,200, where heavy call writing has been observed. This range could act as a barrier for further upside unless significant buying emerges. Immediate support remains at 22,500. Traders should closely monitor market sentiment and institutional activity for confirmation of a pullback rally.