Reversal Hopes vs. Resistance Walls: Nifty & Bank Nifty at a Tipping Point – 22 May 2025


🧭 Chart:

  • NIFTY formed a bullish harami, a possible reversal sign, but needs confirmation with a higher close on Thursday.
  • BANK NIFTY printed a harami cross—a stronger version of a harami, hinting at indecision and a potential pivot.
  • However, weekly candles for both indices lean bearish harami, which could spell trouble if Thursday fails to confirm strength.

🧾 Option Chain:

  • 24,800 has become a battleground with both put and call writing—tug-of-war territory.
  • 25,000 still holds as stubborn resistance with heavy call OI and limited unwinding.
  • Support is forming near 24,800, but not yet rock-solid.

⚖️ PCR (Put/Call Ratio):

  • Overall PCR: 0.6 (mildly bearish)
  • ATM PCR: ~0.8 (neutral-to-slightly bullish)
  • Reading: Mixed sentiment. Neither bulls nor bears are in full control.

🧩 Participant Option Data:

  • FIIs: Long both calls (13K) and puts (20K) — hedged, not directional.
  • Pros: Bought calls and puts aggressively — preparing for volatility.
  • Clients (Retail): Sold more calls than puts — possibly betting on range or downside.
  • Interpretation: No clear directional bets yet. Smart money is sitting on the fence.

🔮 Participant Futures Data:

  • Latest data not published yet.
  • No major futures bets confirmed. Watching Thursday’s release for clarity.

💰 Participant Stock Data:

  • FIIs bought ₹2,000 Cr in the cash market.
  • Positive sign — indicates risk-on mood despite global jitters.
  • DXY flat, gold recovering, and oil showing signs of exhaustion with a shooting star candle.

✅ Verdict:

Market is sitting at an inflection point. Bullish harami on the daily needs confirmation on Thursday. Weekly candles still warn of a possible reversal.
Until then, expect choppy sideways action with sharp intraday moves.


💡 Trades (Not a Recommendation):

  • Straddle at ATM could work if IV expands or wild swings continue.
  • Light OTM puts might offer tail-risk protection if harami fails to hold.
    ⚠️ Note: These are just observations. Manage risk smartly.

🧵 Conclusion:

  • Bulls showed signs of life, but bears still control the higher ground.
  • 24,800–25,000 is the key zone to watch.
  • Thursday will make or break this short-term reversal hope. Stay alert.

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