_Morning Snippet:- 29 May 2025_ *Index Observation* For the past 9 trading days, Nifty has been static within a 2% band, however the highs of 25000 have been constantly providing supply on index longs. Unless a closing above 25050 is not confirmed, downside swing towards 24300 / 24100 remain open on the index. Nifty has had a run up of nearly 15% in the past 6 weeks without a 2% correction. With the price action seen from the start of this week, it is fair for the index to retest 200 DMA support on downside which currently reads below 24100. Bank Nifty has broken from its 6 week rising trendline in last week’s trading. This puts the index back on track to retest its polarity support of its original 5 year rising trendline. Targets for this breakdown hint for a 1200-1500 point breakdown from CMP. Negation for this down move is seen only when the index closes above 55600. Nifty 50 and all stocks derivative monthly expiry is scheduled for today while weekly and monthly closing on charts is seen on Friday. *Interesting Observation* Historically, the Nifty IT Index (lower panel) has maintained a strong directional correlation with the US Nasdaq 100 (upper panel), often trailing the Nasdaq’s moves by a few months, if not immediately. The Nasdaq has typically acted as a leading indicator for Nifty IT. Recently, the Nasdaq has rebounded from March lows and now trades just 3.7% below its highs, while Nifty IT’s recovery has been comparatively subdued. This divergence suggests a potential lag in performance. If the Nasdaq consolidates or pushes higher, it could spark a catch-up rally in Nifty IT. However, any reversal or profit booking in the Nasdaq may limit Nifty IT’s upside. Hence, Nasdaq’s next move will be key in determining whether Nifty IT aligns with global tech strength or continues to underperform. *DERIVATIVES | Trade Setup* Cash Market Activity FII: ₹ 4,663 crore DII: ₹ 7,962 crore *Week-to-Date (WTD)* FII: ₹ 5,146 crore DII: ₹ 19,811 crore *Month-to-Date (MTD)* FII: ₹17,338 crore DII: ₹54,259 crore *F&O Cues* FIIs have added 11k short contracts in index futures in the last trading session, taking their net position to 78k short contracts. In the options segment, the 24700 strike to act as support, while the 25000 strike remains a key resistance. *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 1 New 52 Week Lows: 0 *Mid Cap:* New 52 Week Highs: 2 New 52 Week Lows: 0 *Small Cap:* New 52 Week Highs: 3 New 52 Week Lows: 2 *NIFTY500:* New 52 Week Highs: 6 New 52 Week Lows: 2