Will Nifty Sustain Its Recovery With Strong Put Writing at 25,500?
Market Recap
After a negative opening, Nifty staged a gradual recovery in the first half and touched the 25,660 mark. The index then traded in a narrow band between 25,530 and 25,650 before closing higher by 0.46 percent.
Nifty Midcap 100 outperformed with a 0.48 percent gain, indicating selective broader market participation.
Intraday structure reflects buy-on-dips behavior with controlled volatility.
Sector and Institutional Flow
- Top Performers: PSU Bank, Metal
- Lagging Sectors: IT, Media
- FIIs: Net sellers ₹934.61 crore
- DIIs: Net buyers ₹2,637.15 crore
Domestic institutional buying absorbed foreign selling pressure, supporting index stability.
FII Index Futures Positioning
| Index | Net Contracts |
|---|---|
| Nifty | 928 |
| Bank Nifty | 1,119 |
| Fin Nifty | -26 |
| Midcap Nifty | 2,136 |
| Nifty Next 50 | 51 |
Positive net contracts in key indices indicate selective long exposure in futures positioning.
Option Chain Analysis
- Major Call Open Interest: 26,000
- Major Put Open Interest: 25,500
- Put-Call Ratio: 0.87
- Max Pain: 25,600
- VWAP Trading Range: 25,395 – 25,730
Higher Put writing combined with Call unwinding suggests a bullish undertone. Writers appear confident about defending the 25,500 zone.
Max Pain at 25,600 aligns closely with the current consolidation zone, indicating potential expiry magnet behavior.
A move above 25,730 may open further upside, while breakdown below 25,395 could invite short-term pressure.
Investor Takeaway
Option chain positioning reflects a cautiously bullish bias with strong support at 25,500 and resistance near 26,000. Institutional flows and Put writing suggest stability unless key VWAP support breaks.
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