_Morning Snippet:- 4th June 2025_ *Index Observation* Nifty has closed at a 3 week low after trading in a narrow 2% band in the same time. The index remains on track to hit 24300 / 24100 unless a close above 25050 is not seen. On daily charts Nifty has also formed a bearish head and shoulder pattern allowing similar downside below 24500 to test its 200 DMA support. Bank Nifty has faced rejection from its previous all time highs above 56k mark in Tuesday’s session. Any trade below 55400 is likely to allow further skidding on the index towards 54700 / 54500 as the supply pressure is likely to mount post rejection seen in yesterday’s session. PMI data release is scheduled for today while Nifty’s weekly expiry being set for Thursday followed by RBI’s rate decision on Friday. *Interesting Observation* The US Dollar Index (DXY) has yet to break below its recent swing low, indicating potential resilience. Historically, June tends to be a seasonally strong month for the DXY. If the index holds above its swing low and aligns with its seasonal strength, it could trigger a broader risk-off sentiment in markets—potentially prompting a reversal in emerging markets (EM). It’s worth noting that DXY has diverged from its typical seasonal pattern since the beginning of the year. However, given that it is currently hovering near a key inflection point—one not seen for several years—DXY's behavior this month could prove pivotal. Heightened volatility is expected as markets gauge whether the index will maintain support or break lower. *DERIVATIVES | Trade Setup* Cash Market Activity FII: ₹ -2.853 crore DII: ₹ 5,907 crore *Week-to-Date (WTD)* FII: ₹ -5,443 crore DII: ₹ 11,221 crore *Month-to-Date (MTD)* FII: ₹ -5,443 crore DII: ₹ 11,221 crore *F&O Cues* FIIs have added 14k short contracts in last trading session. Their net position now stand at 103k short contracts. In the options segment, the 24500 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: 2 New 52 Week Lows: 1 *Mid Cap:* New 52 Week Highs: 2 New 52 Week Lows: 1 *Small Cap:* New 52 Week Highs: 3 New 52 Week Lows: 1 *NIFTY500:* New 52 Week Highs: 7 New 52 Week Lows: 3