Why Is Heavy Call Writing Near 25500 Signaling Caution for Nifty?
About the Current Derivatives Setup
The latest option chain data indicates a clear build-up on the Call side at 25500 while meaningful Put positioning is visible at 25000. The structure reflects a defensive stance from option writers.
With Put-Call Ratio cooling to 0.60, the undertone has shifted from neutral to cautious.
After a gap-down start, Nifty drifted lower through the session and closed with a sharp loss of 1.12 percent. Interestingly, the Nifty Midcap 100 index outperformed with a smaller loss of 0.32 percent, suggesting selective resilience beneath index pressure.
Key Derivatives Data (24 February 2026)
🔹 Significant Call OI: 25500
🔹 Significant Put OI: 25000
🔹 Put-Call Ratio (PCR): 0.60
🔹 Max Pain: 25500
🔹 VWAP Range: 25310 – 25685
🔹 Sentiment Bias: Bearish undertone due to higher Call writing
In volatile derivatives environments, structured positioning through Nifty Options Tip strategies helps traders respond to directional bias rather than anticipate it.
Institutional Activity Snapshot
| Segment | Position |
|---|---|
| FIIs (Cash) | Net Sellers ₹102.53 Cr |
| DIIs (Cash) | Net Buyers ₹3,161.22 Cr |
| FII Nifty Futures | -13,794 Contracts |
| FII Bank Nifty Futures | -5,282 Contracts |
Sectorally, Metal and Oil & Gas showed relative strength, while IT and Realty lagged, indicating defensive rotation rather than broad-based collapse.
Strength Factors🔹 Strong DII participation 🔹 Midcap resilience 🔹 Defined VWAP range 🔹 Supportive metal rotation |
Risk Factors🔹 Heavy Call writing at 25500 🔹 PCR at 0.60 🔹 FII futures short build-up 🔹 Weak index breadth |
With Max Pain aligned at 25500 and VWAP band capped near 25685, upside may face supply unless fresh Put writing emerges.
Opportunity Zones🔹 25310 VWAP support test 🔹 Sector rotation plays 🔹 Intraday volatility expansion |
Threat Zones🔹 Break below 25310 🔹 Continued FII shorting 🔹 Weak IT sentiment |
Valuation & Trading View
The derivatives structure currently reflects a bearish undertone unless index sustains above 25500 with fresh Put addition.
Active participants may hedge broader exposure through BankNifty Options Tip frameworks during intraday volatility spikes.
Investor Takeaway: Derivative Pro & Nifty Expert Gulshan Khera, CFP®, advises reading option writers rather than price candles during such setups. When PCR compresses and Call writing dominates, risk management becomes priority over aggression. Explore disciplined derivatives positioning 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.
