Market Overview

Indian equities continued their upward momentum, with both benchmark indices extending gains into Monday’s session. The market opened higher, sustained strength throughout the day, and closed on a firm note, driven by improving technical indicators and strong sectoral participation. With the Nifty crossing the 26,000 milestone and the Bank Nifty moving into uncharted territory, sentiment remains firmly in favour of the bulls.

In this report, Dhwani Patel, SEBI-registered Research Analyst, breaks down the key levels, options data, and major technical cues for today’s trade.

Setup 1 — Nifty 50: Key Resistance & Support Levels

Nifty Close: 26,013

Resistance (Pivot Points):

• R1: 26,026
• R2: 26,054
• R3: 26,099

Support (Pivot Points):

• S1: 25,936
• S2: 25,908
• S3: 25,863

Market View

The Nifty 50 formed a bullish candle with a higher-high, higher-low structure, clearly signalling an extension of the uptrend. The index is now holding well above every key moving average, while short-term and medium-term averages are turning upward in alignment with the ongoing bullish structure.

Key Indicators:

• RSI: 65.12 (bullish crossover sustained)
• Stochastic RSI: Positive crossover intact
• MACD: On the verge of a positive crossover
• Histogram: Firming up near the zero line

Bias: Strongly bullish with improving momentum.

Setup 2 — Bank Nifty: Key Resistance & Support Levels

Bank Nifty Close: 58,963

Resistance (Pivot Points):

• R1: 59,008
• R2: 59,101
• R3: 59,253

Support (Pivot Points):

• S1: 58,705
• S2: 58,612
• S3: 58,460

Fibonacci Levels:

• Resistance: 60,142 & 64,208
• Support: 57,718 & 56,923

Market View

Bank Nifty tested the 59,000 level for the first time and surged 0.76%, breaking into fresh all-time-high territory. The index closed above the upper Bollinger Band, reflecting strong buying pressure.

Momentum indicators continue to strengthen, signalling a firm bullish structure.

Key Indicators:

• RSI: 71.41 (strong bullish crossover)
• Stochastic RSI: Positive crossover sustained
• MACD: Close to a bullish crossover
• Histogram: Weakness fading consistently

Bias: Strong bullish continuation.

Setup 3 — Nifty Call Options Data

• Max Call OI: 26,000 strike (1.42 crore contracts) → Major resistance
• Followed by:
  • 26,500 strike: 1.23 crore
  • 26,100 strike: 1.17 crore

Max Call Writing:

• 26,050 strike: +30.44 lakh
• 26,250 strike: +27.5 lakh
• 26,100 strike: +26.43 lakh

Max Call Unwinding:

• 25,900 strike: –46.5 lakh
• 25,800 strike: –38.96 lakh
• 26,700 strike: –18.11 lakh

Interpretation:

Writers are aggressively building positions above 26,000, indicating a potential ceiling for the short term, unless a breakout is sustained.

Setup 4 — Nifty Put Options Data

• Max Put OI: 25,900 strike (1.41 crore contracts) → Strong support
• Followed by:
  • 25,800 strike: 1.11 crore
  • 26,000 strike: 1.08 crore

Max Put Writing:

• 25,900 strike: +79.25 lakh
• 26,000 strike: +71.65 lakh
• 25,950 strike: +64.15 lakh

Max Put Unwinding:

• 25,350 strike: –4.83 lakh
• 26,500 strike: –75,225
• 26,450 strike: –10,200

Interpretation:

Strong base now forming between 25,800–25,900, providing a cushion for dips.

Setup 5 — Bank Nifty Call Options Data

Max Call OI:

• 58,500 strike: 15.58 lakh
• Followed by:
  • 60,000 strike: 12.18 lakh
  • 59,000 strike: 12 lakh

Max Call Writing:

• 58,900 strike: +1.73 lakh
• 59,300 strike: +99,155
• 59,100 strike: +64,645

Max Call Unwinding:

• 58,500 strike: –3.74 lakh
• 58,000 strike: –1.85 lakh
• 58,600 strike: –1.4 lakh

Interpretation:

Profit-taking seen at lower OTM strikes while writers reposition at higher levels.

Setup 6 — Bank Nifty Put Options Data

Max Put OI:

• 58,500 strike: 18.87 lakh (strong support)
• 58,000 strike: 16.47 lakh
• 59,000 strike: 10.02 lakh

Max Put Writing:

• 59,000 strike: +6.88 lakh
• 58,800 strike: +3.61 lakh
• 58,900 strike: +3.37 lakh

Put Unwinding:

Minimal unwinding across major strikes — strong put writing indicates bullish sentiment.

Setup 7 — Put-Call Ratio (PCR)

• PCR: 1.13, up from 0.92

Interpretation:

A rising PCR above 1 shows stronger Put writing than Call writing — signalling continued bullish bias.

Setup 8 — India VIX

• India VIX: Fell below short-term moving averages
• Sustaining well under 12 zone

Interpretation:

Lower volatility levels give bulls a comfortable environment to extend the rally.

Key Takeaways by Dhwani Patel

• Nifty Support Zone: 25,863 – 25,936
• Nifty Resistance Zone: 26,026 – 26,099
• Bank Nifty Support Zone: 58,460 – 58,705
• Bank Nifty Resistance Zone: 59,101 – 59,253
• Bias: Strong bullish continuation
• Strategy:
  • Buy on dips near support zones
  • Avoid aggressive shorts
  • Keep tight stop-losses due to extended rally

Disclosure & Disclaimer

Dhwani Patel (SEBI Registration No: INH200008608) is a SEBI-registered Research Analyst.
This report is for educational and informational purposes only and should not be considered investment advice. Trading and investing involve risk. Please consult your financial advisor before taking any decision.