Morning Snippet:- 28th February 2025 *Index Observation* Nifty traded in less than half a percent range on its monthly expiry session yesterday. The index has been confined within a 150 point band from the start of this week after it broke below 22800 support on 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 faced marginal pressure as soon as it approached the resistance at 49k odd levels. The index has not made a fresh swing low despite breaking below its range of 48800-49800. Traction on downside is missing despite fresh downside being opened on charts after the break of this range. Negation for this down move stands at 49000 odd levels. BSE Sensex has a double inside bar formation wherein the index has been trading for the past2 session's within its range which was formed on Monday after it had hit its fresh 8 month low. Sensex has also been confined within a 500 point band from the start of this week and a round of short covering is not expected unless a close above 75750 is not seen. Weekly and monthly closing on charts is scheduled for today, while BSE Sensex weekly expiry is scheduled for upcoming Tuesday. *Rollover Analysis* FIIs have rolled most of their short positions into the next (March) series. FII’s net position on index futures at the start of March series stand at 173k *short contracts*. Nifty futures rollovers stood at 84%, higher than the last three months’ average of 79%, but with lower open interest of 17.6 Mn shares compared to 18.1 Mn shares in February. The rollover cost was around 58 bps. Bank Nifty rollover stood at 58% vs 3 month average of 59%, however significant lower compared to January rollover of 71%. The average roll cost stood at 55 bps. Market-wide futures rollovers were at 90%, slightly above the 3-month average of 89%. Stock futures rollovers came in at 92%, lower than the recent average. *Roll costs for most frontline stocks were around 52 bps.* *Sectoral Analysis* * On Sectoral front, only Nifty Private Bank (up 70 bps) and Nifty Metal index (up 40 bps) has managed to close in green in Feb series. * The Nifty IT and Nifty Auto index is expected to remain in pressure as major stocks have seen rollover in short position. * Wipro, Tech Mahindra has seen highest short buildup among IT names * On long side, Bajaj Finance and Tata Consumer Products has seen long buildup *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: -556.56 Crs. DII Cash: 1727.11 Crs. *WTD* FII: -10372.36 Crs. DII: 9943.54 Crs. *MTD* FII: -47349.06 Crs. DII: 52544.56 Crs. *F&O CUES* FIIs have rolled over their short positions into next series. Their net position on index futures stand at 173k 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, 23000 strike has significant call open interest and therefore will act as resistance. *UPCOMING CORPORATE EVENTS* *Date: 04-03-2025* COFORGE: Stock Split *Date: 05-03-2025* BEL: Dividend LICHSGFIN: Fund Raising *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 1 New 52 Week Lows: 11 *Mid Cap:* New 52 Week Highs: 1 New 52 Week Lows: 20 *Small Cap:* New 52 Week Highs: 0 New 52 Week Lows: 51 *NIFTY500:* New 52 Week Highs: 2 New 52 Week Lows: 82