Why Did Nifty Manage to Stay Above 24,950 Despite Profit Booking?

How Did Nifty Sustain Above 24,950 With Bullish Undertone?

The Indian stock market witnessed a volatile yet constructive session on 10 September 2025. The benchmark Nifty 50 index opened with a gap-up, briefly moved past the 25,000 mark, faced profit booking pressure, but managed to hold firm above 24,950 levels by the closing bell. This resilience highlighted investor optimism despite near-term fluctuations.

Market Recap:
Nifty gained 0.42% to settle above 24,950, while the Nifty Midcap 100 index outperformed with a strong 0.93% rise. Buying momentum was evident in select sectors, though some pockets faced selling pressure.

Sectoral performance and market breadth

Market action was not uniform across all sectors. IT and PSU Banks were the star performers, while Auto and Media stocks lagged. The broad-based rally in midcaps indicates continued retail participation and rotational buying from institutional desks.

Top Performing Sectors: IT, PSU Bank
Weak Sectors: Auto, Media

Institutional activity and flows

Foreign Institutional Investors (FIIs) turned net sellers, offloading equities worth ₹115.69 crore. In contrast, Domestic Institutional Investors (DIIs) absorbed the selling pressure with strong buying of ₹5004.29 crore. This divergence suggests that while global investors remain cautious, domestic institutions continue to support the market at key levels.

FII & DII Flows:
FIIs: Net Sellers ₹115.69 crore
DIIs: Net Buyers ₹5004.29 crore

FII index futures positioning

Derivative data showed that FIIs maintained a mildly positive stance in index futures. Their net contracts were positive in Nifty (2236), Bank Nifty (829), and Midcap Nifty (685), while being marginally negative in Fin Nifty (-3) and Nifty Next 50 (-37). This positioning hints at selective bullishness with caution in broader indices.

FII Index Futures (Net Contracts):
Nifty: 2236 | Bank Nifty: 829
Fin Nifty: -3 | Midcap Nifty: 685
Nifty Next 50: -37

Options market insights

The options chain for Nifty clearly signaled a bullish undertone. The heaviest Open Interest (OI) concentration was seen at the 25,000 Call and 25,000 Put strike, indicating a key battleground for bulls and bears. With the Put-Call Ratio (PCR) at 1.11, traders leaned on the bullish side, aided by stronger Put writing activity.

Options Signals:
Max Pain: 25,000
PCR: 1.11
VWAP Range: 24,890 – 25,030
Sentiment: Stronger Put writing → Bullish undertone

Investor takeaway

The market’s ability to absorb profit booking and still end the day in the green reflects underlying strength. The support zone remains intact at 24,890–24,950, while resistance continues around 25,030. Midcaps outperforming alongside supportive DII flows point towards resilience in domestic sentiment. Traders may adopt a cautiously bullish approach with a focus on IT and PSU banks, while monitoring global triggers for volatility.

For traders looking to navigate this volatile phase, tips are available below:

👉 Nifty Tip | BankNifty Tip

📌 Explore additional market content at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

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