Can Nifty Hold Above 23,000 As Options Data Turns Mildly Bullish?
About Kotak Neo and the Market Setup
Kotak Neo is the digital trading platform of Kotak Securities and regularly publishes derivatives and market analytics based on options activity, institutional flows and technical indicators. The latest data for Nifty indicates a mildly bullish undertone after a recovery from intraday lows. However, persistent FII selling and resistance near higher levels suggest traders should remain selective and disciplined while positioning for the coming session.
Indian equity markets witnessed a volatile trading session on 25 September 2026. After opening weak, the Nifty index spent much of the first half trading within a narrow range before buying interest emerged near the 23,025 zone. This buying momentum helped the benchmark index recover sharply and close the day with gains of approximately 0.34%.
While the headline index finished in positive territory, the broader market picture remains mixed. Options data, institutional flows and futures positioning collectively indicate that traders are becoming more optimistic, although caution remains necessary due to continued foreign institutional selling pressure.
Key highlights from the latest options data
- Major Call Open Interest: 23,500 Strike
- Major Put Open Interest: 23,000 Strike
- Put-Call Ratio (PCR): 0.93
- Max Pain Level: 23,250
- VWAP Trading Range: 23,005 – 23,230
- Market Bias: Mildly Bullish
The most notable development in the derivatives market is the combination of Put Writing and Call Unwinding. This generally suggests that market participants are becoming more comfortable with current support levels while reducing bearish positions. Such activity often reflects improving sentiment, although it does not guarantee a sustained rally.
Understanding the significance of PCR at 0.93
A Put-Call Ratio of 0.93 is significantly stronger than readings seen during periods of excessive pessimism. The figure suggests that traders are gradually building confidence in market stability. While the ratio is not yet at levels that indicate excessive bullishness, it reflects a healthier balance between put and call activity compared with earlier sessions.
Historically, a PCR close to 1.0 often reflects a relatively balanced market structure. Therefore, the latest reading indicates that traders are not aggressively betting against the market despite recent volatility.
Why the 23,000 level remains important
The largest concentration of Put Open Interest remains at the 23,000 strike. This effectively makes the zone a key support level for the near term. As long as Nifty sustains above this region, traders may continue to view declines as opportunities rather than reasons for panic.
Support Zone: 23,000
VWAP Lower Range: 23,005
Max Pain Level: 23,250
Major Resistance Zone: 23,500
A sustained move below 23,000 could alter sentiment considerably and may encourage fresh defensive positioning. Conversely, continued stability above this level can strengthen confidence among short-term market participants.
For traders evaluating short-term opportunities amid changing market sentiment, explore our latest market insights here:
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What does Max Pain at 23,250 indicate?
The Max Pain level at 23,250 suggests that options writers may benefit most if Nifty gravitates toward this area near expiry. While the market does not always move directly toward Max Pain, it often acts as an important reference point for short-term traders.
With Nifty closing below the Max Pain level, traders will closely watch whether the index attempts to move higher toward this zone during the coming sessions. A sustained move above Max Pain can improve bullish confidence, while repeated failures may indicate limited upside momentum.
Institutional activity sends mixed signals
Foreign Institutional Investors remained net sellers, offloading approximately ₹3,693.93 crore. Domestic Institutional Investors partially absorbed this selling pressure with purchases worth approximately ₹2,838.17 crore.
FII Activity: Net Selling ₹3,693.93 crore
DII Activity: Net Buying ₹2,838.17 crore
The divergence between FII and DII behaviour remains one of the most important themes in the current market environment. Domestic institutions continue providing support, while foreign investors remain cautious amid global uncertainties.
FII futures positioning reveals selective optimism
Interestingly, FII positioning in index futures presented a more nuanced picture. Nifty futures witnessed net additions of 3,324 contracts while Midcap Nifty futures saw an increase of 932 contracts. These numbers suggest that despite cash market selling, some institutional participants are selectively positioning for potential upside.
However, Bank Nifty futures recorded a reduction of 6,462 contracts, indicating continued caution within banking and financial stocks.
Positive Futures Positioning:
• Nifty: +3,324
• Midcap Nifty: +932
Negative Futures Positioning:
• Bank Nifty: -6,462
Sector leadership and market rotation
Consumer Durables and Realty emerged as the strongest sectors during the session. Strength in these sectors often reflects improving confidence in domestic demand and economic activity.
On the other hand, Healthcare and Media stocks lagged the broader market. Sector rotation remains an important characteristic of the current market phase, with investors continuously reallocating capital toward segments demonstrating stronger earnings visibility and momentum.
Trading outlook for 28 September 2026
Based on the available options data, Nifty appears to be entering the next session with a mildly positive bias. Put Writing and Call Unwinding support the constructive outlook. However, traders should remember that significant Call Open Interest at 23,500 continues to represent an important resistance area.
Key Trading Levels To Watch:
Support Zone: 23,000 – 23,005
Reference Level: 23,250 (Max Pain)
Resistance Zone: 23,500
Market Bias: Mildly Bullish With Resistance Overhead
Investor takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that the latest derivatives data indicates improving sentiment compared with recent sessions. Put Writing, Call Unwinding and a stronger PCR suggest growing confidence among market participants. However, sustained FII selling and significant resistance near 23,500 imply that traders should remain disciplined and focus on risk management. The 23,000 level remains a critical support zone for maintaining the present constructive market structure.
For additional market education, trading perspectives and research-driven insights, readers may explore resources available at Indian-Share-Tips.com, a SEBI Registered Advisory Services platform.
