Is Call Writing at 25600 Capping Nifty Upside?
About the Current Derivatives Setup
The latest option chain positioning reflects significant open interest build-up at 25600 Call and 25500 Put.
With Put-Call Ratio at 0.65 and relatively higher Call writing, the undertone remains cautious despite positive cash market flows.
During the session, Nifty opened firm and moved higher in the first hour. However, profit booking near 25,650 restricted momentum and the index eventually settled with a modest gain of 0.23 percent. Midcaps outperformed, closing up 0.58 percent.
Key Options Data (25 February 2026)
🔹 Significant Call OI: 25600
🔹 Significant Put OI: 25500
🔹 Put-Call Ratio (PCR): 0.65
🔹 Max Pain: 25500
🔹 VWAP Range: 25370 – 25675
🔹 Sentiment Bias: Cautious due to higher Call writing
In such capped environments, traders often align positioning using Nifty Option Analysis frameworks to respond to supply zones rather than anticipate breakouts.
Institutional Flow Snapshot
| Segment | Position |
|---|---|
| FIIs (Cash) | Net Buyers ₹2,991.64 Cr |
| DIIs (Cash) | Net Buyers ₹5,118.57 Cr |
| FII Nifty Futures | +986 Contracts |
| FII Bank Nifty Futures | +31 Contracts |
Sectorally, Metal and Auto outperformed, while PSU Bank and FMCG lagged. The divergence suggests rotational strength rather than broad-based momentum.
Supportive Factors🔹 Strong FII and DII buying 🔹 Midcap outperformance 🔹 Defined VWAP support at 25370 🔹 Sector rotation into cyclicals |
Limiting Factors🔹 Heavy Call writing at 25600 🔹 PCR below 0.70 🔹 Profit booking near 25650 🔹 Overhead supply zone |
With Max Pain anchored at 25500 and VWAP cap near 25675, the 25600–25700 zone remains critical on the upside. Sustained move above this band would require fresh Put addition and Call unwinding.
Opportunity Zone🔹 Sustain above 25675 🔹 Fresh Put writing above 25500 🔹 Broad-based sector participation |
Risk Zone🔹 Break below 25370 🔹 Renewed Call addition 🔹 Weak breadth expansion |
Valuation & Trading View
Despite positive institutional flows, derivatives positioning signals caution near 25600. The next directional cue may emerge from either a breakout above 25675 or a breakdown below 25370.
Index participants may consider hedging broader exposure through BankNifty Option Analysis structures during resistance tests.
Investor Takeaway: Derivative Pro & Nifty Expert Gulshan Khera, CFP®, emphasizes watching option writers’ behavior around 25600. Until Call supply unwinds, aggressive upside may remain capped. Strategic positioning frameworks are available 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.
