The resistance level has remained at 26,000CE for a second week due to a lack of fresh Open Interest (OI) build-up, while the support level has risen by 1,200 points to 25,200PE, narrowing the trading range for the upcoming week. The 26,000CE has the highest Call OI, followed by 25,400, 25,600, 26,500, 25,350, 25,300, 25,700, and 26,100 strikes, with reasonable additions in Call OI noted at 26,500, 25,350, 25,650, and 26,200 strikes. Additionally, Call ITM strikes are observed from 25,250 and OTM strikes in 25,550, 25,800, 25,950, and 26,000. The Implied Volatility (IV) has significantly decreased for both the higher OI bases at Call and Put strikes.
The decline in IVs coupled with substantial Put OI additions indicates a cautious base-building phase between 25,000 and 25,400. The maximum Put OI is at 25,200PE, followed by 25,000, 24,500, 25,300, 25,150, 24,500, 24,000, and 24,300 strikes. There is notable heavy Put OI build-up at 25,300, 25,100, 25,000, 25,200, 24,700, and 24,000 strikes, while heavy additions of Put OI are seen around 25,300, 25,200, 25,250, 25,150, and 25,400 strikes. The significant Put positioning around 25,000-25,300, paired with subdued Calls, indicates the market is in a consolidation phase.
Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, noted that in the derivatives segment, the highest Call Open Interest for the Nifty was at the 25,500 and 25,400 strike levels, while significant Put Open Interest was at the 24,200 and 25,100 strikes. For the Bank Nifty, significant Call Open Interest was concentrated at the 57,000 strike, with substantial Put Open Interest at the 56,000 strike. The Indian market experienced upward movement, with broader indices ending in positive territory. The Nifty rose over 1.5%, while the Bank Nifty outperformed with gains of approximately 1.8% on the weekly chart.
Key factors driving this rally included expectations surrounding upcoming IT earnings, buying interest in metal stocks, and optimism regarding eased lending norms, particularly benefiting PSU banks. Sectors such as capital markets, IT, and healthcare saw major gains, while media, defense, and FMCG sectors ended the week lower. For the week ending October 10, 2025, the BSE Sensex closed at 82,500.82 points, reflecting a net decrease of 1,293.65 points or 1.59% from the previous week’s closing of 81,207.17 points. Similarly, the NSE Nifty fell by 391.10 points or 1.57% to 25,285.35 points from 24,894.25 points the prior week.
Bisht predicts that on the daily chart, the Nifty is trading within an upward channel, indicating sustained upward momentum and is also above its long-term exponential moving average, suggesting a bullish trend. Immediate support is at 24,800; as long as the index remains above this level, the bullish outlook is expected to persist, allowing for a ‘buy on dips’ strategy. Resistance is set in the 25,500-25,600 range. The NSE Nifty defended the 25,000 level, closing near the highs. It may maintain its positive bias and approach 25,500. Additionally, aggressive Put writing was seen in ATM and OTM strikes, signifying support at lower levels.
Therefore, aggressive traders can utilize dips to establish new long positions, with 25,000 as a critical support level, according to ICICIdirect.com. However, our stance remains positive as long as the Nifty is above its crucial support level of 24,800. On the upside, the Nifty could extend its gains towards the September highs of 25,500. The India VIX fell by 0.17% to 10.10. After hovering low for the past few sessions, the India VIX rose to the 10 level following the RBI MPC outcome. Current levels of the India VIX are notably lower, and it may rise ahead of quarterly results.
Foreign Institutional Investors (FIIs) in the F&O segment, after a recovery last week, reduced their net shorts to 185,000 from recent highs of 196,000 contracts, still considered high relative to recent market movements, according to ICICIdirect data. FIIs have taken major long positions in Put options, while foreign funds remain net long in Put options, indicating their continued negative bias towards equities. Implied Volatility for Nifty’s Call options settled at 8.74%, while Put options concluded at 9.91%. The India VIX, a significant market volatility indicator, ended the week at 10.12%. The Put-Call Ratio of Open Interest (PCR OI) was at 0.99 for the week.
The Bank Nifty closed the week at 56,609.75 points, down 1,020.50 or 1.80% from the previous week’s closing of 55,589.25 points.