Nifty is looking for a breakout as bulls lift the index to its daily peak, facing key resistance at 26,000 and support at 25,500 for the third consecutive week. The latest options data from NSE indicates the market is range-bound within the 25,500-26,000 corridor. The highest Call Open Interest (OI) is at the 26,000 strike, followed by 25,900, 26,100, and 26,500 strikes, while significant Call OI build-up is noted at 25,800 and 25,950 strikes. Out-of-the-Money (OTM) Calls at 26,850 and above showed a minor decrease in OI, suggesting traders may be unwinding positions or taking profits due to the reduced likelihood of reaching those levels.
In-the-Money (ITM) Calls from 25,400 experienced a slight OI dip, indicating a lack of aggressive bullish sentiment. On the Put side, the maximum OI is at the 25,500 strike, with additional OI at 25,700 and 25,800 strikes. Some ITM Puts in the 25,850 range showed modest OI declines, while a few OTM Puts also recorded slight drops. According to Dhirender Singh Bisht, Associate Vice-President of Technical Research at SMC Global Securities, the highest Call OI for Nifty is at the 26,000 and 25,900 strikes, while notable Put OI is at the 25,800 and 25,700 strikes. For Bank Nifty, significant Call OI was noted at the 58,000 strike, alongside substantial Put OI at the same level.
The Implied Volatility (IV) for higher OI Calls increased by approximately 50%, while it rose about 25% for higher Put OI, a change that can lead to higher option premiums and adjustments in hedging strategies anticipating larger market fluctuations. Nifty rollovers decreased to 75.79%, down from 82.60% the previous month and below the three-month average of 80.64%, indicating waning momentum for the November series. Conversely, Bank Nifty rollovers slightly improved to 79.57%, aligning with the three-month average of 79.11%. Most Nifty rollovers occurred in the 26,000-26,050 futures range, while Bank Nifty rollovers were mostly between 58,100-58,200. Bank Nifty outperformed broader indices, closing the week positively, while Nifty fell about 0.25% weekly.
However, on a monthly scale, Nifty attained its second-highest gain of the year, driven mainly by the US Federal Reserve’s rate cut and expectations for reduced US-China trade tariffs. Towards the week’s end, the market saw some correction after Fed Chair Jerome Powell indicated no further rate cuts are likely this year due to a lack of supporting data. Sector performance varied, with PSU Banks, Metals, and Oil & Gas stocks leading gains, while Auto, Healthcare, and Capital Market sectors faced declines. For the week ending October 31, 2025, BSE Sensex reported a marginal loss of 273.17 points or 0.32% from the previous week, closing at 83,938.71 points.
Similarly, NSE Nifty dipped by 73.05 points or 0.28%, closing at 25,722.10 points. Bisht predicts that Nifty’s trading below its rollover zone may lead to further downside pressure, with immediate support in the 25,500-25,400 range and resistance around 26,000-26,200. India VIX increased by 0.70% to 12.15. The Implied Volatility for Nifty’s Call options concluded at 10.84%, while Put options ended at 11.89%. The India VIX, a key measure of market volatility, closed at 12.06% with a Put-Call Ratio of Open Interest at 1.14 for the week. Although Foreign Institutional Investors (FIIs) were net sellers in the F&O September series, their selling pressure diminished in October, turning net buyers with approximately 21,000 crore investment this month.
Domestic institutions also significantly invested over 45,000 crore each in September and October. Bank Nifty closed the week at 57,776.35 points, a gain of 76.75 points or 0.13% from the previous week’s close.