Indian equity markets enter the December 22 session on a stronger footing, supported by improving technical signals and firm options positioning. After a volatile phase last week, benchmarks have shown resilience by defending key supports and negating recent bearish structures. According to market expert Dhwani Patel, the broader setup now reflects strengthening bullish momentum, though traders should continue to track resistance levels closely.
Low volatility and rising risk appetite suggest the possibility of sharper intraday moves.
Nifty 50 Technical Outlook
Current Level: 25,966
The Nifty 50 formed a bullish candle after a gap-up opening, with small upper and lower shadows—indicating positive sentiment despite intraday volatility. Importantly, the index invalidated the lower high–lower low structure seen over the previous four sessions.
The benchmark successfully defended the 50-day EMA and the rising support trendline. It also closed above short-term moving averages and broke past the falling resistance trendline, signalling a shift in market structure.
Momentum indicators are turning supportive:
- RSI climbed to 52.07 with a positive crossover
- Stochastic RSI moved into bullish territory
- MACD histogram showed fading negative momentum
Overall, these signals point toward strengthening bullish bias.
Key Levels for Nifty 50
Resistance (Pivot-Based):
- 25,990
- 26,016
- 26,060
Support (Pivot-Based):
- 25,904
- 25,877
- 25,834
Sustaining above 25,904 keeps the upside intact, while a move beyond 26,016 could open further room for gains.
Bank Nifty Technical Outlook
Current Level: 59,069
Bank Nifty traded within the previous session’s range and formed a Doji-like candlestick, following an inverted hammer pattern earlier—highlighting indecision at higher levels.
The index continues to hold above the rising support trendline but closed marginally below the 10- and 20-day EMAs, even as volumes remained above average. This suggests cautious participation rather than aggressive selling.
Momentum indicators show gradual improvement:
- RSI edged higher to 52.28, though still below the reference line
- Stochastic RSI is close to a positive crossover
- MACD histogram reflected diminishing weakness
This combination indicates cautious optimism, with confirmation needed through price action.
Key Levels for Bank Nifty
Resistance (Pivot-Based):
- 59,129
- 59,186
- 59,279
Support (Pivot-Based):
- 58,943
- 58,886
- 58,793
Fibonacci Resistance:
- 59,455
- 60,874
Fibonacci Support:
- 58,636
- 58,287
Nifty Options Data – Weekly Expiry
Call Options Activity
The 26,000 strike holds the highest Call open interest at 1.29 crore contracts, making it a crucial resistance zone. Other notable levels include:
- 26,200 strike – 98.31 lakh contracts
- 26,100 strike – 79.47 lakh contracts
Fresh Call writing was seen at:
- 26,200 strike (+23.39 lakh contracts)
- 26,400 strike (+8.47 lakh contracts)
- 26,250 strike (+7.58 lakh contracts)
Maximum Call unwinding occurred at:
- 25,900 strike (−54.32 lakh contracts)
- 25,800 strike (−39.3 lakh contracts)
- 25,850 strike (−34.32 lakh contracts)
Nifty Put Options Activity
On the Put side, the 25,900 strike carries the maximum Put open interest at 1.3 crore contracts, acting as a strong support area. This is followed by:
- 25,800 strike – 1.06 crore contracts
- 26,000 strike – 94.37 lakh contracts
Put writing was highest at:
- 25,900 strike (+94.06 lakh contracts)
- 25,950 strike (+68.56 lakh contracts)
- 26,000 strike (+63.72 lakh contracts)
Maximum Put unwinding was observed at:
- 25,300 strike (−7.3 lakh contracts)
- 25,400 strike (−4.65 lakh contracts)
- 25,350 strike (−1.78 lakh contracts)
Bank Nifty Options Data – Monthly Expiry
Call Options Activity
The 59,500 strike holds the highest Call open interest at 18.02 lakh contracts, emerging as a key resistance. Other levels include:
- 60,000 strike – 17.82 lakh contracts
- 59,000 strike – 11.21 lakh contracts
Fresh Call writing was concentrated at:
- 59,200 strike (+65,975 contracts)
- 59,300 strike (+56,175 contracts)
- 60,500 strike (+23,520 contracts)
Maximum Call unwinding was recorded at:
- 61,000 strike (−81,340 contracts)
- 59,000 strike (−67,305 contracts)
- 59,700 strike (−60,515 contracts)
Bank Nifty Put Options Activity
The 59,000 strike has the highest Put open interest at 13.98 lakh contracts, followed by:
- 59,500 strike – 12.02 lakh contracts
- 58,500 strike – 10.44 lakh contracts
Put writing was strongest at:
- 59,000 strike (+1.14 lakh contracts)
- 58,800 strike (+63,245 contracts)
- 59,200 strike (+56,455 contracts)
Put unwinding was highest at:
- 59,500 strike (−57,260 contracts)
- 58,000 strike (−43,330 contracts)
- 59,700 strike (−22,925 contracts)
Put-Call Ratio (PCR)
The Nifty Put-Call Ratio jumped to 1.13, up sharply from 0.83 in the previous session. A PCR above 1 reflects increased Put writing relative to Calls, typically signalling strengthening bullish sentiment and growing confidence among traders.
India VIX
India VIX declined further by 1.91% to 9.52, marking an all-time closing low and extending its downtrend for the fourth straight session. While such low volatility supports bullish undertones, it also raises the probability of sudden sharp moves, making risk management essential.
Conclusion
The trade setup for December 22, 2025, indicates renewed bullish strength, supported by improving technical indicators, strong Put writing, and a rising PCR. As highlighted by Dhwani Patel, sustaining above key support zones will be crucial for the rally to extend, while resistance near higher levels may invite short-term profit booking.
Traders are advised to remain disciplined and trade with clearly defined levels amid low-volatility conditions.
