The domestic market closed the previous session on a strong footing, supported by broad-based buying and improving sentiment. The benchmark indices extended their upward momentum, helped by positive cues from global markets and strong options positioning at key Put strikes. With volatility at multi-week lows and momentum indicators turning favorable, traders now look forward to whether this strength can sustain.

Here’s the detailed trade setup for Nifty, Bank Nifty, options data, PCR, and India VIX for the trading day on December 8, 2025.

Setup 1 — Nifty 50: Key Resistance & Support Levels

Nifty Close: 26,186

🔸 Resistance (Pivot Points):

• R1: 26,208
• R2: 26,259
• R3: 26,342

🔸 Support (Pivot Points):

• S1: 26,042
• S2: 25,990
• S3: 25,907

📉 Market Outlook

Nifty printed a long bullish candle on the daily chart, highlighting strong buying interest throughout the session. The index also held firmly above all key moving averages, confirming a strengthening trend.

🔍 Technical Indicators

• RSI: Rose to 60.21 with a bullish crossover
• Stochastic RSI: Turned bullish
• MACD: Moving upward, though still below signal line
• Histogram: Weakness faded, indicating improvement in momentum

💡 Interpretation

With bullish momentum strengthening and sentiment improving, Nifty may attempt to move toward its overhead resistance zones. Supports at 26,042–25,907 remain crucial for sustaining this trend.

Setup 2 — Bank Nifty: Key Resistance & Support Levels

Bank Nifty Close: 59,777

🔸 Resistance (Pivot Points):

• R1: 59,831
• R2: 59,996
• R3: 60,263

🔸 Support (Pivot Points):

• S1: 59,296
• S2: 59,131
• S3: 58,863

🔸 Fibonacci Levels:

• Resistance: 60,874, 62,294
• Support: 58,995, 58,646

📉 Market Outlook

Bank Nifty maintained its strength by staying above all key moving averages, despite experiencing mild consolidation recently. The index formed a long green candle following a Doji pattern, confirming renewed buying interest at key levels.

🔍 Technical Indicators

• RSI: Climbed to 67.21, edging closer to a bullish crossover
• Stochastic RSI: Turned positive
• MACD: Still below the signal line, but histogram weakness has reduced

💡 Interpretation

Bank Nifty appears to be building momentum again. As long as it maintains above the 59,300–58,900 support range, the index holds potential for further upside toward the 60,000–60,250 zone.

Setup 3 — Nifty Call Options Data (Weekly Expiry)

📌 Call Side

• Max Call OI: 26,500 strike (1.12 crore contracts) → Major resistance
• Followed by:
  • 27,000 strike: 1.11 crore
  • 26,400 strike: 1.04 crore

🔸 Call Writing:

• 26,400 strike: +34.66 lakh
• 26,450 strike: +18.45 lakh
• 26,600 strike: +16.63 lakh

🔸 Call Unwinding:

• 26,000 strike: –52.59 lakh
• 26,100 strike: –50.01 lakh
• 26,050 strike: –32.78 lakh

👉 Heavy unwinding at lower strikes suggests declining bearish sentiment and shifting resistance higher.

Setup 4 — Nifty Put Options Data

📌 Put Side

• Max Put OI: 26,000 strike (1.68 crore contracts) → Strongest support
• Followed by:
  • 25,900 strike: 1.07 crore
  • 26,100 strike: 1.04 crore

🔸 Put Writing:

• 26,000 strike: +68.68 lakh
• 26,100 strike: +61.01 lakh
• 26,050 strike: +50.8 lakh

🔸 Put Unwinding:

• 25,600 strike: –10.94 lakh
• 25,550 strike: –1.79 lakh
• 26,650 strike: –1.6 lakh

👉 Put writers are aggressively strengthening the base near 26,000–26,100, indicating strong confidence among bulls.

Setup 5 — Bank Nifty Call Options Data (Monthly Expiry)

📌 Call Side

• Max Call OI: 60,000 strike (12.73 lakh contracts) → Key resistance
• Followed by:
  • 59,500 strike: 10.18 lakh
  • 58,500 strike: 8.24 lakh

🔸 Call Writing:

• 62,000 strike: +47,495
• 59,700 strike: +26,425
• 58,800 strike: +25,060

🔸 Call Unwinding:

• 59,500 strike: –2.21 lakh
• 60,000 strike: –1.87 lakh
• 59,400 strike: –86,590

👉 Despite Call resistance at 60,000, unwinding suggests some easing of selling pressure.

Setup 6 — Bank Nifty Put Options Data

📌 Put Side

• Max Put OI: 59,500 strike (16.64 lakh contracts) → Strong support
• Followed by:
  • 59,000 strike: 13.45 lakh
  • 58,500 strike: 10.25 lakh

🔸 Put Writing:

• 59,000 strike: +1.79 lakh
• 60,000 strike: +1.73 lakh
• 59,500 strike: +1.21 lakh

🔸 Put Unwinding:

• 59,200 strike: –34,685
• 60,300 strike: –31,710
• 58,400 strike: –16,765

👉 Strong Put OI buildup indicates market confidence and suggests dips may be bought into.

Put-Call Ratio (PCR)

• PCR: 1.22 (previous: 0.93)

📌 Interpretation:

A sharp rise in PCR above 1.0 reflects strong Put writing, signaling increased bullish sentiment and market confidence.

However, extremely high PCR levels can also hint at over-positioning by bulls.

India VIX

• VIX: 10.32, down 4.65%

India VIX continued its downward trend, closing at its lowest level since October 10. With volatility subdued for nearly two weeks, traders seem comfortable with market stability.

However, very low VIX often precedes sharp price swings, so caution is still advised.

Summary for Traders

Nifty

• Strong bullish candle
• Momentum indicators improved
• Support: 26,042–25,907
• Resistance: 26,259–26,342

Bank Nifty

• Trend strengthening after consolidation
• RSI and Stoch turning bullish
• Support: 59,296–58,863
• Resistance: 59,996–60,263

Options Data

• Nifty: Strongest support at 26,000
• Bank Nifty: Put build-up strongest at 59,500
• PCR rising — sentiment improving

Volatility

• VIX at multi-week lows → stable but prone to surprise moves

Disclosure & Disclaimer

Dhwani Patel (SEBI Registration No: INH200008608) is a SEBI-registered Research Analyst.
All views are for educational purposes only. This is not investment advice. Please consult your financial advisor before trading.