The markets continued displaying stability as benchmark indices moved within a controlled range while maintaining a positive undertone. With both Nifty and Bank Nifty sustaining above critical moving averages, traders can expect a session driven by consolidation, selective strength, and improving momentum signals. Below is a complete breakdown of the important technical levels and option data to help you prepare for the trading day.

1) Key Levels For The Nifty 50 (26,027)

Resistance (Pivot Points):

• 26,048
• 26,081
• 26,136

Support (Pivot Points):

• 25,939
• 25,905
• 25,851

Special Formation:

The Nifty formed a bullish candle on the daily chart, showing continued strength. However, the index failed to close above the previous day’s high, signalling some hesitation at upper levels.

Technically, the index:

• Remained above all key moving averages, which is positive
• Could not close above the midline of the Bollinger Bands
• Showed a positive Stochastic RSI crossover, indicating early momentum
• Saw its RSI dip slightly to 53.68, staying marginally below the reference line
• Witnessed fading histogram weakness for the third straight session

Despite this, the MACD stayed below the reference line, suggesting that a full confirmation of trend reversal is still pending.

Interpretation:
Nifty is in a consolidation phase with mild positive bias, supported by strong moving average structure but restrained by weak momentum confirmation.

2) Key Levels For The Bank Nifty (59,462)

Resistance (Pivot Points):

• 59,533
• 59,646
• 59,830

Support (Pivot Points):

• 59,165
• 59,052
• 58,868

Fibonacci Levels:

• Resistance: 60,907, 62,337
• Support: 58,988, 58,638

Special Formation:

The Bank Nifty closed the session on a positive note, forming a bullish candle and breaking above a downward-sloping resistance trendline—a constructive sign for bulls.

The index also:

• Stayed above all major moving averages
• Sustained above the Bollinger Bands midline
• Held a bullish Stochastic RSI crossover
• Saw RSI climb to 59.18, though still below its reference line
• Reflected further fading of histogram weakness
• Kept MACD below the reference line

Interpretation:
Bank Nifty shows improving momentum with cautious optimism. A close above 59,650–59,700 could unlock further upside.

3) Nifty Call Options Data

• Max Call OI:
  • 26,200 strike (1.42 crore contracts) – major resistance
  • 26,100 strike (1.35 crore contracts)
  • 26,300 strike (1.1 crore contracts)
• Highest Call Writing:
  • 26,100 strike (+51.95 lakh)
  • 26,200 strike (+45.62 lakh)
  • 26,050 strike (+36.81 lakh)
• Max Call Unwinding:
  • 26,800 strike (-16.36 lakh)
  • 26,600 strike (-13.21 lakh)
  • 26,350 strike (-12.44 lakh)

Interpretation:
Strong supply continues near 26,100–26,200, suggesting overhead pressure and a tough zone to cross.

4) Nifty Put Options Data

• Max Put OI:
  • 25,900 strike (1.75 crore contracts) – strong support
  • 26,000 strike (1.58 crore)
  • 25,800 strike (1.34 crore)
• Highest Put Writing:
  • 25,900 strike (+60.82 lakh)
  • 25,950 strike (+57.52 lakh)
  • 25,850 strike (+48.28 lakh)
• Max Put Unwinding:
  • 25,600 strike (-7.1 lakh)
  • 25,350 strike (-5.73 lakh)
  • 26,100 strike (-4.29 lakh)

Interpretation:
The Put writing at 25,900–26,000 indicates that the market is likely to defend this support strongly.

5) Bank Nifty Call Options Data

• Max Call OI:
  • 59,500 strike (15.38 lakh contracts)
  • 60,000 strike (14.59 lakh)
  • 61,000 strike (8.35 lakh)
• Top Call Writing:
  • 59,500 strike (+2.02 lakh)
  • 60,500 strike (+80,080)
  • 59,700 strike (+55,160)
• Max Call Unwinding:
  • 60,000 strike (-39,235)
  • 58,800 strike (-31,360)
  • 59,800 strike (-23,450)

Interpretation:
Bank Nifty faces firm resistance at 59,500–60,000, where traders continue adding short positions.

6) Bank Nifty Put Options Data

• Max Put OI:
  • 59,500 strike (19.14 lakh contracts)
  • 59,000 strike (15.14 lakh)
  • 58,500 strike (11.15 lakh)
• Top Put Writing:
  • 59,500 strike (+2.28 lakh)
  • 59,000 strike (+1.94 lakh)
  • 59,200 strike (+1.01 lakh)
• Max Put Unwinding:
  • 58,900 strike (-6,335)
  • 57,800 strike (-5,250)
  • 58,800 strike (-4,760)

Interpretation:
Support continues to strengthen around 59,000–59,500, aligning with technical improvements.

7) Put-Call Ratio (PCR)

• PCR rose to 1.18 (previous: 1.15)

A PCR above 1 indicates heightened Put writing and increasing bullish confidence.

8) India VIX

• India VIX increased by 1.41% to 10.25
• Remains below all significant moving averages
• Still within the lower volatility zone

Interpretation:
Market stability remains intact. Low VIX offers comfort but also warns that sudden sharp moves cannot be ruled out.

Conclusion: What to Expect on December 16

• Nifty may continue to consolidate between 25,900–26,100, with a slight upward bias
• Bank Nifty strength appears better, supported by trendline breakout and strong Put bases
• Options data suggests upside caps near 26,200 (Nifty) and 59,500–60,000 (Bank Nifty)
• Momentum is improving, but full confirmation requires breakouts above resistance zones

Overall sentiment remains cautiously optimistic, supported by structure but limited by weak momentum indicators.

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.