Morning Snippet:- 27th February 2025 *Index Observation* Nifty has been trading below its support zone of 22650-22800 which it held on to for the past 4 weeks as it closed at 8 month low in last Friday’s session. Lower targets of 22400/22100 have opened up after the index gave a breakdown of bearish head and shoulder pattern below 22780 neckline. However the risk reward does not favour fresh shorting at current levels. Short covering trigger is unlikely unless 22950 is recouped on a closing basis. Bank Nifty has not made a fresh swing low despite breaking below its range of 48800-49800. The index has broken below this range which it was holding for the past 2 weeks now. Fresh downside of 1000 pts from 48800 can unfold on this index while negation level stands at 49000. NSE Nifty, Bank Nifty and other stock futures expiry is scheduled for today while a weekly and monthly closing on charts is set for tomorrow. *Interesting Observation* Dollar Index – At a Pivotal Level! The Dollar Index is currently exhibiting a pattern similar to the one observed in 2017, during Donald Trump’s first presidency. At that time, the index experienced a sustained rally of approximately 13% before entering a prolonged downtrend. A similar uptrend of 10% was seen this time as well before retracing towards 106 levels from highs of 110. The Dollar Index now stands at a crucial pivotal level that could determine its future trend. A monthly close below 106.7 would push the index below its previous resistance, confirming a shift to a downtrend. Conversely, a close above 106.7 would indicate a retest or a pullback from the highs. Looking at historical patterns, the resemblance to the trend during Trump’s first presidency, combined with the Dollar Index reversing from a key retracement level, suggests a sustained downtrend if the index closes below 106 on a monthly basis. This, in turn, would be bullish for commodities and emerging market equities. *DERIVATIVES* *Index IV* *NIFTY:* IV : 12.56 IVP : 73.6 IVR : 46.12 *BANKNIFTY:* IV : 14.7 IVP : 72.4 IVR : 35.3 *Trade Setup* Activity in Cash Market FII Cash: -3529.1 Crs. DII Cash: 3030.78 Crs. *WTD* FII: -9815.8 Crs. DII: 8216.43 Crs. *MTD* FII: -46792.5 Crs. DII: 50817.45 Crs. *F&O CUES* FIIs stance on index futures were bullish in the previous session. They have added 1K long contracts. FIIs net position on index futures now stand at 199K short contracts. On the option front, 22500 strike will continue to act as support as this strike has significant put open interest. On the upside, 22700 strike has significant call open interest and therefore will act as resistance. *UPCOMING CORPORATE EVENTS* *Date: 28-02-2025* SBILIFE: Dividend *Date: 04-03-2025* COFORGE: Stock Split *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 0 New 52 Week Lows: 5 *Mid Cap:* New 52 Week Highs: 0 New 52 Week Lows: 9 *Small Cap:* New 52 Week Highs: 1 New 52 Week Lows: 24 *NIFTY500:* New 52 Week Highs: 1 New 52 Week Lows: 38