The most striking observation from the option chain is the significant open interest build-up at the 26,100 Call and the 26,000 Put. Fresh Call writing at higher levels combined with Put unwinding suggests that bulls are losing conviction at resistance zones, while downside protection is being reduced. This shifts the near-term bias toward a neutral-to-cautious stance.

The Put-Call Ratio (PCR) at 0.65 further confirms that Calls are being accumulated more aggressively than Puts. A sub-1 PCR often reflects a hedged or bearish undertone, as traders position for limited upside or potential pressure around the resistance band.

The VWAP-derived trading range for the next session stands between 25,955 and 26,125. This relatively tight window indicates lower intraday volatility expectations and reinforces the possibility of sideways movement unless a strong directional catalyst emerges.

The market opened on a positive note but gradually lost steam as the session progressed. Nifty slipped below the crucial 26,000 mark due to intensified selling pressure in the second half, eventually closing with a modest 0.42% decline. Interestingly, the Nifty Midcap 100 index showed relative resilience, losing only 0.32%.

Sector performance revealed a mixed picture. The IT and Bank sectors outperformed, demonstrating stronger buying interest and relative strength. Meanwhile, Chemicals and Realty lagged behind as traders prefer sectors aligned with stability rather than cyclicality in the current environment.

Foreign Institutional Investors (FIIs) were net sellers of ₹4,171.75 crore, adding to the pressure on frontline stocks. Domestic Institutional Investors (DIIs) offset some of the selling impact by purchasing ₹4,512.87 crore. This tug-of-war indicates that domestic support continues to prevent deeper corrections.

In index futures positioning, FIIs held net 6,163 contracts in Nifty and 1,563 contracts in Bank Nifty. This tilt suggests selective bullish exposure despite cautiously unwinding positions elsewhere. Meanwhile, Fin Nifty (-14) and Nifty Next 50 (38) show minor activity, reflecting muted risk appetite outside the primary indices.

The combination of Call writing at 26,100 and Put unwinding at 26,000 shows that traders expect strong overhead resistance around the 26,100–26,150 zone. Bulls will need heavy short covering or positive global cues to regain momentum above the resistance band.

Max Pain at 26,000 implies that the market may gravitate toward this strike as expiry approaches. With PCR at 0.65, the market tone remains hedged. Traders should expect controlled moves with a mild downward bias unless large FIIs turn into net buyers in futures.

Overall, the sentiment depicted by the data leans toward caution. The interplay of resistance buildup, declining Put support, and institutional selling collectively warns traders to maintain disciplined stop-losses and avoid aggressive long positions at higher levels.