Nifty 50 (24,271) gained 0.9 per cent over the past week, while Nifty Bank (57,939) slipped 0.4 per cent, reflecting a divergence. The derivatives data suggests that Nifty’s up move is finding support from fresh long additions in the July series, whereas Bank Nifty appears to be undergoing a phase of consolidation after its recent outperformance.FIIs (Foreign Institutional Investors) remained net short on index futures, with the position widening 12 per cent over the last week to 2.51 lakh contracts. However, their positioning in the options segment turned less defensive. Net short positions on index call options declined 10 per cent to 2.33 lakh contracts, while net long positions in index puts fell 20 per cent to 4.77 lakh contracts. This indicates that although foreign investors continue to retain a bearish bias through futures, they have reduced some downside hedges.The broader positioning remained mixed. Combined net short positions on index futures increased from 72,767 contracts to 78,070 contracts. At the same time, net short positions on call options increased from 1.20 lakh contracts to 1.44 lakh contracts, while net put shorts increased marginally from 1.34 lakh contracts to 1.36 lakh contracts. Taken together, the options data suggests that traders have become less aggressive in betting against the market despite the rise in futures shorts.The derivatives data broadly mirrors the price action. Nifty extended its recovery and saw fresh long additions in the July futures series, whereas Bank Nifty witnessed mild profit-booking after a strong rally over the previous weeks. Overall, the data points to a positive undertone for Nifty, while Bank Nifty appears to be consolidating within an ongoing positive trend.Nifty 50Nifty futures (Jul) (24,353) witnessed some weakness in the early part of last week but recovered strongly thereafter. On Friday, the contract opened above the resistance at 24,300 and managed to close the week above this level, a positive technical signal.The bullish outlook is supported by fresh long additions in the July series. While Nifty futures gained 0.8 per cent over the week, its open interest (OI) surged from 92 lakh contracts to 171 lakh contracts, indicating fresh buying interest.The options data also points to a positive bias. The Put Call Ratio (PCR) of July options stood at 1.14 on Friday. A PCR above 1 suggests that put writing continues to outpace call writing, reflecting positive sentiment among option traders.Taken together, the derivatives data indicates potential for further upside in Nifty futures (Jul). Although the contract could witness a brief corrective decline towards the 24,250-24,300 support zone, it is likely to attract buying interest there and eventually move up to 24,750 in the near term. A breakout of 24,750 can pave the way for a rally to 25,000.On the downside, a break below 24,250 can drag the contract to the 24,000-23,900 support band. A breach of this zone would weaken the near-term outlook and potentially shift the bias in favour of the bears. The next notable support below this region is at 23,600.Overall, the trend remains bullish and any corrective dip can be viewed as a buying opportunity.Strategy: Last week, we recommended buying Nifty futures (Jul) on a breakout above 24,300. Traders can continue to hold the position with the stop-loss at 23,900. When the contract rises to 24,600, revise the stop-loss to 24,500. Book profits at 24,700.Nifty BankNifty Bank futures (Jul) (58,221) largely traded sideways through last week and ended the period with a loss of 0.7 per cent. The decline was accompanied by an increase in OI from 12.6 lakh contracts to 22.4 lakh contracts, indicating fresh short build-up.That said, the options data paints a relatively less bearish picture. The PCR of July options improved from 0.79 to 0.85 over the week, suggesting that put writing outpaced call writing during the period. Although the ratio remains below 1, the increase points to a moderation in bearish sentiment among option traders.The broader trend on the chart continues to remain positive. Key supports for Nifty Bank futures (Jul) are placed at 57,550 and 57,000. Notably, the 21-day moving average is currently positioned at 57,250, creating a strong support cluster in the 57,000-57,550 region. We expect the support at 57,550 to hold and therefore consider the probability of a sustained decline below this level to be low.Consequently, Nifty Bank futures (Jul) is likely to resume its uptrend either from the current level or after a brief dip towards 57,550. Such a move can take the contract to 60,000, a key resistance. A breakout above 60,000 can further strengthen the bullish case and lift the contract to 61,000.On the other hand, if the contract slips below the support at 57,000, the correction can deepen towards 56,000. The next notable support below this level is at 55,000.Strategy: Last week, we recommended buying Nifty Bank futures (Jul) at 58,250. Traders can continue to hold this position with the stop-loss at 57,400. Book profits at 60,000.Published on July 4, 2026