Indian equity markets showed signs of hesitation as benchmark indices witnessed selling pressure and slipped below key short-term levels. With technical indicators weakening and options data reflecting rising caution, traders should prepare for a volatile yet range-bound session. Below is a detailed breakdown of Nifty, Bank Nifty, derivatives positioning, and volatility indicators to help plan trades effectively.

1) Key Levels for the Nifty 50 (25,860)

Resistance Levels (Pivot Points):

• 25,948
• 25,982
• 26,038

Support Levels (Pivot Points):

• 25,836
• 25,801
• 25,745

Technical Setup:

The Nifty 50 formed a bearish candle, continuing the lower high–lower low structure, which reflects rising nervousness among participants.

Key technical observations:

• Index slipped below the 10-day and 20-day EMAs
• Fell under the Bollinger Bands midline
• Trading near the 50% Fibonacci retracement of the rally from November lows
• RSI dropped to 47.82, indicating weakening momentum
• MACD maintained a bearish crossover with continued histogram weakness

Market View:

The structure suggests short-term weakness with increasing caution. Unless Nifty reclaims 25,950–26,000, upside may remain limited.

2) Key Levels for the Bank Nifty (59,035)

Resistance Levels (Pivot Points):

• 59,253
• 59,340
• 59,481

Support Levels (Pivot Points):

• 58,971
• 58,884
• 58,743

Fibonacci Levels:

• Resistance: 59,453, 60,866
• Support: 58,643, 58,296

Technical Setup:

The Bank Nifty also formed a bearish candle, declining nearly 0.7%, and closing below short-term moving averages.

Key indicators:

• RSI slipped to 51.55 with a negative crossover
• MACD stayed below the reference line
• Histogram continued to show weakness

Market View:

Bank Nifty remains in consolidation with a bearish bias, and strength may only return above 59,350–59,500.

3) Nifty Call Options Data (Weekly)

• Maximum Call OI:
  • 26,000 strike – 76.6 lakh contracts
  • 26,500 strike – 53.9 lakh contracts
  • 26,100 strike – 51.25 lakh contracts
• Maximum Call Writing:
  • 26,000 strike – +47.73 lakh
  • 25,900 strike – +40.82 lakh
  • 26,300 strike – +35.6 lakh
• Call Unwinding:
  • Negligible across the 25,200–26,700 range

Interpretation:

Heavy Call writing near 26,000 indicates strong resistance and limited upside in the near term.

4) Nifty Put Options Data (Weekly)

• Maximum Put OI:
  • 25,500 strike – 46.98 lakh contracts
  • 25,900 strike – 36.36 lakh contracts
  • 26,000 strike – 33.3 lakh contracts
• Maximum Put Writing:
  • 25,900 strike – +17.67 lakh
  • 25,500 strike – +16.65 lakh
  • 25,300 strike – +13.92 lakh
• Maximum Put Unwinding:
  • 26,050 strike – 1.82 lakh
  • 26,400 strike – 30,825
  • 26,150 strike – 24,075

Interpretation:

Support appears around 25,500–25,800, but aggressive Put writing is lower compared to Calls, showing defensive positioning.

5) Bank Nifty Call Options Data (Monthly)

• Maximum Call OI:
  • 59,500 strike – 18.16 lakh
  • 60,000 strike – 17.83 lakh
  • 61,000 strike – 10.54 lakh
• Maximum Call Writing:
  • 60,000 strike – +3.23 lakh
  • 59,500 strike – +2.77 lakh
  • 59,300 strike – +2.74 lakh
• Call Unwinding:
  • 58,500 strike – 52,885
  • 58,000 strike – 52,115

Interpretation:

Strong Call writing suggests selling pressure near 59,500–60,000.

6) Bank Nifty Put Options Data (Monthly)

• Maximum Put OI:
  • 59,500 strike – 16.8 lakh
  • 59,000 strike – 13.31 lakh
  • 58,500 strike – 10.43 lakh
• Maximum Put Writing:
  • 58,600 strike – +1.61 lakh
  • 58,000 strike – +97,580
  • 57,700 strike – +39,165
• Maximum Put Unwinding:
  • 59,500 strike – 2.33 lakh
  • 59,000 strike – 1.82 lakh

Interpretation:

Put unwinding near 59,500 hints at weakening support at higher levels.

7) Put–Call Ratio (PCR)

• PCR dropped to 0.90 (previous: 1.18)

Interpretation:

The sharp fall in PCR reflects reduced bullish confidence and rising caution among traders.

8) India VIX

• India VIX fell 1.83% to 10.06
• Lowest closing level since early October

Interpretation:

Low volatility favours bulls structurally, but such levels also increase the risk of a sudden sharp move in either direction.

Overall Market Outlook for December 17, 2025

• Nifty faces pressure below 26,000
• Bank Nifty remains weak below 59,350
• Options data indicates strong resistance overhead
• Momentum indicators show short-term bearish bias
• Volatility remains low, suggesting sudden moves possible

Strategy:
Traders should adopt a sell-on-rise or range-trading approach, keep strict stop-losses, and avoid aggressive long positions until indices reclaim key resistance zones.

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.