Nifty 50 Option-Chain Analysis – 23 October 2025 to arrive at conclusion for 24 Oct
Our focus is the Nifty 50 index’s options market as of 23 October 2025, analysing hidden signals in open interest (OI), volume, Put-Call Ratio (PCR) and other derivatives dynamics to gauge the likely trading range and sentiment for the next session.
The key derivatives data for Nifty 50 on 23 October 2025 are summarised in the table below for clarity:
| Metric | Value | Comment |
|---|---|---|
| Max Pain | ₹25,850 | Strike where option-writers stand to benefit if price gravitates here |
| Put-Call Ratio (PCR) | 0.86 | Lower than 1 → heavier call writing vs put writing |
| Key Call OI build-up | ₹26,200 Call | Significant open interest addition on the upside |
| Key Put OI build-up | ₹25,500 Put | Notable put accumulation on the downside |
| VWAP-derived range (for next day) | ₹25,840 – ₹26,130 | Estimated based on volume-weighted average price dynamics |
Decoding the Key Terms for Laypersons
Here are the jargon explanations to ensure clarity:
- Open Interest (OI): The total number of outstanding option contracts (either calls or puts) that have been opened and not yet closed. A build-up suggests fresh positions are being taken.
- Put-Call Ratio (PCR): Ratio of the number of outstanding puts to outstanding calls. When PCR < 1 it means more calls are open vs puts (often interpreted as bullish or cautious), when PCR > 1 more puts are open (often bearish).
- Max Pain: The strike price at which option-writers (sellers) will incur the least loss if the underlying expires at that level. Often seen as a magnet for price movement near expiry.
- VWAP (Volume Weighted Average Price) Range: A model-derived range using average price weighed by volume. It suggests a probable trading band for next day.
- Call/Put Writing: When option-writers sell calls or puts, expecting the underlying to stay below (for calls) or above (for puts) the strike. Higher writing of calls vs puts suggests sentiment is guarded rather than free-wheeling bullish.
Interpretation – What the Data Suggests
The most notable observation is the heavier call writing relative to puts (PCR 0.86). This implies that traders/writers are comfortable with the index staying below higher strikes (calls) rather than betting on aggressive downside via puts. In other words, the market appears cautious-bullish rather than fully bullish.
The significant open interest build at the ₹26,200 call strike means many are expecting the index to approach, but not necessarily sustainably breach, the 26,200 level. On the flip side, the build at the ₹25,500 put indicates a floor of sorts — a level below which heavy buying is anticipated or writers have taken the opposite side.
The Max Pain figure of ₹25,850 aligns closely with the VWAP-suggested range of ₹25,840 – ₹26,130, indicating the option market positioning expects the index to trade within this band in the near term, reducing likelihood of a sharp breakout outside this corridor in immediate horizon.
What Traders Should Consider for Tomorrow (24 October 2025)
- With the expected trading range of ₹25,840 – ₹26,130, setting stop-losses and targets close to these boundaries is prudent rather than expecting large directional moves.
- Given the higher call-writing, upside beyond ₹26,200 may be resisted by option-writers looking to cap the move and benefit from time decay.
- Support around ₹25,500 (put build) is important — if the index begins to slip below this, it might signal a change in sentiment to a more negative bias.
- Monitoring volume and open interest changes early in the session is critical: if open interest in calls drops sharply or puts build up rapidly, that may hint at shift in conviction.
📌 Note: This analysis uses option-chain and VWAP data to infer probable movement and is meant for educational purposes only. Option trading carries risk and traders should use appropriate risk-management and hedging techniques.
Looking for more data-driven strategies? Explore our Nifty Option Tip and BankNifty Tip for live market insights and risk-managed ideas.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, emphasises that the option-chain data for 23 October shows a market that is upbeat yet cautious. While the presence of call-writing suggests confidence that the index will stay elevated, the lack of aggressive put-writing and the PCR below 1 hint that traders are not fully bullish and are preserving upside. For retail participants, this suggests a strategy of moderate risk, tight stop-losses near support levels and modest targets rather than being overly aggressive. Discover more analytical perspectives and fact-based guidance at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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.
