Is Nifty Setting Up for a Continuation Move After Strong Put Writing?
Market Tone and Current Snapshot
Nifty CMP: ~26,250 (▲ +34 points)
After hitting a fresh all-time high near 26,310, the index saw expected profit booking and tested support at 26,140. The quick rebound indicates bulls defended structure aggressively.
Based on flows and OI changes, the market continues to favour a buy-on-dips approach.
Price action shows reaction. Options data shows intention.
Options Chain Highlights (From Image Data)
CALL OI: 25.21 Lakh (▲ +6.04 Lakh / +32%)
PUT OI: 33.11 Lakh (▲ +11.31 Lakh / +52%)
👉 PCR (OI): 1.31 (Prev: 1.14)
A rising PCR, driven by stronger Put additions, signals bullish tone and declining downside expectations.
Key Zones in Image:
🔹 Highest CALL concentration: 26,300 CE
🔹 Highest PUT concentration: 26,000 PE
Money Flow: Put writers holding mark-to-market advantage; confidence remains strong on the long side.
👉 Strong momentum aligns well with: Nifty Options View | BankNifty Options View
Strike-Wise Activity Summary
| Strike | Call Side Action | Put Side Action |
|---|---|---|
| 26,300 | Short Buildup (Resistance Zone) | Minor activity |
| 26,200 | Mild Unwind / Mixed Flows | Short Buildup (Strong Defending) |
| 26,000 | Neutral | Massive Short Buildup (Primary Support) |
Strengths & Weaknesses in Current Positioning
|
🔹 Strong Put writing at 26,000 & 26,200 🔹 Rising PCR supports bullish continuation 🔹 Dip buying visible on tape |
🔹 Overextension risk if 26,400 fails 🔹 Volatility spike possible near expiry 🔹 Bulls must defend 26,140 zone |
Trading Bias Based on OI Structure
Support Zone: 26,140
Resistance Zone: 26,400
As long as Nifty maintains above 26,140, the structure favours a controlled upward move toward 26,400 and above.
Strategy Outlook: Buy-on-Dips remains valid.
Investor Takeaway:
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, notes that the OI structure suggests stability and continuation rather than exhaustion. For disciplined execution, follow live insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: This data is for educational and analytical purposes only. It must not be treated as investment or trading advice. Market conditions may change rapidly. Always follow risk management rules.
