What Is Nifty Signalling Near 25700 as Option Writers Turn Active?
About the Current Market Setup
Latest Option Chain Analysis dated 23 February 2026 highlights a concentrated build-up at 26,000 Call and 25,500 Put strikes. With Nifty closing higher despite intraday weakness, derivatives positioning now becomes the primary lens for short-term direction.
The broader structure reflects controlled optimism supported by institutional buying, while sectoral participation remains selective. The next directional cue will likely emerge from how price behaves around the 25,700–26,000 zone.
After a gap-up opening, Nifty drifted lower through most of the session before staging a final-hour recovery to close up 0.55%. However, Nifty Midcap 100 underperformed with a 0.43% decline, indicating uneven participation beneath the index strength.
Key Derivative Highlights
🔹 Significant Call OI at 26,000
🔹 Significant Put OI at 25,500
🔹 Put-Call Ratio (PCR) at 0.98
🔹 Max Pain at 25,700
🔹 VWAP Trading Range: 25,595 – 25,790
🔹 Higher Put writing with Call unwinding indicates bullish undertone
With Put writers defending 25,500 and Call writers reducing exposure, the structure suggests that downside is currently perceived as limited while upside breakout requires decisive strength above 26,000.
For disciplined derivative traders seeking structured entries around such pivot zones, timely guidance via Nifty Tip can help align strategy with evolving option data.
Institutional & Sector Snapshot
| Category | Data |
|---|---|
| FII Cash Activity | Net Buyers ₹3,483.70 Cr |
| DII Cash Activity | Net Sellers ₹1,292.24 Cr |
| Top Sectors | PSU Bank, Financial Services |
| Lagging Sectors | IT, Chemicals |
FII futures data shows selective positioning: positive in Nifty and Midcap contracts, but net short in Bank Nifty. This divergence hints at index stability but sector rotation underneath.
Strengths🔹 Strong Put base at 25,500 🔹 PCR near equilibrium suggests stability 🔹 FII buying supports index floor |
Weaknesses🔹 Heavy Call supply at 26,000 🔹 Midcap underperformance 🔹 Bank Nifty futures negative bias |
The structure currently favours range-bound consolidation between 25,500 and 26,000, with 25,700 acting as gravitational Max Pain level.
Opportunities🔹 Break above 26,000 may trigger short covering 🔹 Sustained FII buying can expand upside range 🔹 Sector rotation into Financials |
Threats🔹 Breakdown below 25,500 widens volatility 🔹 Call writers may re-enter aggressively 🔹 Global cues remain uncertain |
Derivative positioning suggests cautious optimism. However, confirmation requires sustained trade beyond resistance supply zones.
Valuation & Investment View
While derivatives indicate short-term bullish bias, disciplined risk management remains critical. Traders should watch 25,500 as structural support and 26,000 as breakout trigger.
Strategic traders aligning positions with broader index momentum may consider structured guidance through BankNifty Tip to manage volatility across financial-heavy indices.
Investor Takeaway: The current setup reflects controlled bullishness with derivative defence at lower levels. According to Derivative Pro & Nifty Expert Gulshan Khera, CFP®, clarity will emerge once price decisively exits the 25,500–26,000 range. For structured market insights and disciplined strategy frameworks, explore guidance at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Nifty and Derivatives
What does Max Pain indicate for expiry?
How reliable is PCR at 0.98?
Why is 26,000 a key resistance zone?
How do FIIs influence option chain trends?
What happens if 25,500 breaks?
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.
