_Morning Snippet:- 02nd June 2025_ *Index Observation* Nifty has been confined within a 2% band for the past 11 trading days. With 25k acting as a strong supply zone, it’s necessary for the index to close above 25050 for negation of its potential downside towards 24300 / 24100 as the index has had a strong run up in the past couple of weeks despite geopolitical challenges without a 2% pullback. With Bank Nifty closing at the highest ever level on weekly charts on Friday, the index has also given a short-term bullish flag breakout on daily charts. Dips below 55000 odd levels are likely to get bought for 56200 targets however this bullish set up negates below 54500 as the index is not in sync with broader Nifty. BSE Sensex weekly expiry is scheduled for tomorrow while Nifty 50 weekly expiry is scheduled for Thursday followed by RBI’s rate decision on Friday. *Interesting Observation* In the chart, the upper panel shows the Nasdaq 100’s weekly trend since 2007, highlighting a sharp recovery from recent lows—now trading just ~3% below its all-time high. The lower panel depicts the Nifty IT/Nifty 50 ratio, which historically tracks the Nasdaq’s trend and has repeatedly found support on a rising trendline. However, despite the Nasdaq’s strength, the ratio has not shown a comparable rebound, indicating continued underperformance of Indian IT stocks relative to the broader market. This divergence suggests that, while global tech is strong, Indian IT may still be lagging. Monitoring Nasdaq in comparison with this ratio remains key to identify either newfound outperformance or continued underperformance in the IT stocks. *DERIVATIVES | Trade Setup* Cash Market Activity FII: ₹ -6449 crore DII: ₹ 9,095 crore *Week-to-Date (WTD)* FII: ₹ -419 crore DII: ₹ 33,132 crore *Month-to-Date (MTD)* FII: ₹11,773 crore DII: ₹67,642 crore *F&O Cues* FIIs have added 5k short contracts in last trading session. Their net position now stand at 83k short contracts. In the options segment, the 24700 strike to act as support, while the 25200 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: 1 *Small Cap:* New 52 Week Highs: 2 New 52 Week Lows: 1 *NIFTY500:* New 52 Week Highs: 5 New 52 Week Lows: 2