Will Nifty Face More Pressure As PCR Drops To 0.69?
PCR: 0.69
Max Pain: 24,200
VWAP Range: 24,145 – 24,275
Major Call OI: 24,300
Major Put OI: 24,000
Nifty witnessed profit booking at higher levels during Monday's session and remained under pressure for most of the day. However, buying interest near lower levels helped the index recover from intraday lows before closing marginally lower at 24,219.
The options market now signals a cautious-to-bearish undertone. Higher Call Writing combined with Put Unwinding suggests traders are becoming less confident about immediate upside potential.
What Does The Option Chain Indicate?
- Higher Call Writing at 24,300.
- Put Unwinding near support zones.
- PCR falls to 0.69.
- FII Index Futures remain net sellers.
A PCR of 0.69 indicates call positions significantly outweigh put positions. While extremely low PCR readings can sometimes create contrarian opportunities, the current reading reflects caution among market participants.
Institutional Activity Remains Mixed
- FIIs: Net Buyers ₹1,181.66 Crore
- DIIs: Net Buyers ₹2,493.41 Crore
Although both FIIs and DIIs were buyers in the cash market, derivatives positioning paints a different picture. Foreign investors reduced exposure in Nifty and Bank Nifty index futures, suggesting near-term caution despite positive cash market inflows.
FII Futures Positioning
- Nifty Futures: -7,786 Contracts
- Bank Nifty Futures: -2,631 Contracts
- Fin Nifty Futures: -12 Contracts
- Midcap Nifty Futures: +901 Contracts
The significant reduction in Nifty and Bank Nifty futures positions indicates that institutional traders remain defensive. However, selective buying in Midcap Nifty contracts suggests investors are still finding opportunities in broader markets.
Key Levels For 25 August 2026
- 24,145 (VWAP Lower Band)
- 24,000 (Major Put Base)
- 23,900 (Psychological Support)
- 24,275 (VWAP Upper Band)
- 24,300 (Major Call OI)
- 24,400 (Breakout Zone)
Trading View For The Next Session
The options market currently favors a narrow-to-negative bias. As long as Nifty remains below the 24,300 Call strike, traders may continue to witness selling pressure on rallies. A decisive move above 24,300 would be required to improve sentiment and trigger short covering.
On the downside, the 24,000 Put base remains the most important support. A breakdown below this level could increase volatility and encourage further bearish positioning.
Investor Takeaway
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