Market Overview
Indian equity markets showed tentative signs of stabilisation in the previous session after recent weakness. Both benchmark indices attempted a recovery during intraday trade but struggled to sustain higher levels. According to market experts such as Dhwani Patel, the current setup reflects a phase of consolidation where selective buying may emerge, but confirmation through momentum indicators is still awaited.
With volatility at historically low levels and options data indicating mixed positioning, traders should remain cautious and focus on clearly defined support and resistance zones.
Nifty 50 Technical Outlook
Current Level: 25,816
The Nifty 50 formed a bullish candle on the daily chart, featuring a long upper shadow and a small lower shadow. This structure resembles an inverted hammer–type formation, which is often associated with a potential reversal after a decline, though it does not qualify as a textbook pattern.
The index continues to oscillate between short-term and medium-term moving averages on a closing basis, reflecting indecision. Despite the bullish candle, momentum indicators remain under pressure. The RSI declined further to 46.37, staying below the neutral mark, while the MACD moved closer to the zero line with continued weakness in the histogram.
Overall, the setup suggests cautious optimism, but upside momentum remains limited unless key resistance levels are decisively crossed.
Key Levels for Nifty 50
Resistance (Pivot-Based):
- 25,882
- 25,924
- 25,991
Support (Pivot-Based):
- 25,747
- 25,706
- 25,639
A sustained move above 25,924 could improve sentiment, while a breakdown below 25,706 may invite renewed selling pressure.
Bank Nifty Technical Outlook
Current Level: 58,913
Bank Nifty also formed a bullish candle with a long upper shadow, indicating that selling pressure may be easing. The index attempted to reclaim the 20-day EMA during intraday trade and managed to close above the previous session’s low.
Importantly, Bank Nifty held above its rising support trendline, suggesting underlying demand at lower levels. However, momentum indicators continue to reflect weakness. The RSI slipped to 49.58, while the MACD remained below its reference line, with the histogram showing further deterioration.
This points to tentative stabilisation rather than a confirmed reversal.
Key Levels for Bank Nifty
Resistance (Pivot-Based):
- 59,136
- 59,253
- 59,444
Support (Pivot-Based):
- 58,755
- 58,638
- 58,447
Fibonacci Resistance:
- 59,467
- 60,895
Fibonacci Support:
- 58,643
- 58,296
Nifty Options Data – Weekly Expiry
Call Options Activity
The 26,000 strike continues to hold the highest Call open interest at 1.27 crore contracts, making it a key near-term resistance. Other notable Call OI levels include:
- 25,900 strike – 1.03 crore contracts
- 26,500 strike – 85.55 lakh contracts
Fresh Call writing was observed at:
- 26,600 strike (+20.1 lakh contracts)
- 25,800 strike (+13.57 lakh contracts)
- 26,200 strike (+10.04 lakh contracts)
Maximum Call unwinding occurred at:
- 26,150 strike (−10.01 lakh contracts)
- 26,300 strike (−8.22 lakh contracts)
- 26,650 strike (−3.33 lakh contracts)
Nifty Put Options Activity
On the Put side, the 25,500 strike holds the maximum Put open interest at 74.18 lakh contracts, acting as a strong support zone. This is followed by:
- 25,800 strike – 66.99 lakh contracts
- 25,600 strike – 65.8 lakh contracts
Put writing was highest at:
- 25,600 strike (+30.07 lakh contracts)
- 25,700 strike (+20.2 lakh contracts)
- 25,400 strike (+16.94 lakh contracts)
Maximum Put unwinding was seen at:
- 25,350 strike (−10.92 lakh contracts)
- 25,900 strike (−8.03 lakh contracts)
- 26,100 strike (−1.44 lakh contracts)
Bank Nifty Options Data – Monthly Expiry
Call Options Activity
The 59,500 strike holds the maximum Call open interest at 18.32 lakh contracts, emerging as a strong resistance level. This is followed by:
- 60,000 strike – 17.9 lakh contracts
- 59,000 strike – 11.88 lakh contracts
Fresh Call writing was observed at:
- 60,200 strike (+55,475 contracts)
- 60,100 strike (+32,900 contracts)
- 60,300 strike (+28,280 contracts)
Maximum Call unwinding was recorded at:
- 59,600 strike (−47,425 contracts)
- 59,400 strike (−46,725 contracts)
- 59,200 strike (−46,130 contracts)
Bank Nifty Put Options Activity
The 59,000 strike holds the highest Put open interest at 12.83 lakh contracts, followed by:
- 59,500 strike – 12.59 lakh contracts
- 58,000 strike – 10.08 lakh contracts
Put writing was strongest at:
- 58,700 strike (+62,055 contracts)
- 58,300 strike (+53,410 contracts)
- 58,800 strike (+39,795 contracts)
Put unwinding was highest at:
- 59,500 strike (−2.2 lakh contracts)
- 58,000 strike (−1.02 lakh contracts)
- 57,500 strike (−70,770 contracts)
Put-Call Ratio (PCR)
The Nifty Put-Call Ratio rose to 0.83, compared to 0.77 in the previous session. A rising PCR indicates increased Put selling relative to Calls, often signalling improving confidence and a gradual shift toward bullish sentiment.
However, the ratio remains below 1, suggesting optimism is still moderate rather than aggressive.
India VIX
India VIX declined for the third straight session, falling 1.32% to 9.7, marking a fresh closing low. Such low volatility typically favours bulls in the short term but also raises the risk of a sudden, sharp move in either direction.
Conclusion
The trade setup for December 19, 2025, points toward early stabilisation with cautious undertones. While candle structures on both Nifty and Bank Nifty hint at a possible reversal, weak momentum indicators and heavy resistance overhead suggest traders should remain selective and disciplined.
As highlighted by Dhwani Patel, confirmation through sustained price action above key resistance levels will be crucial before adopting an aggressive bullish stance.
Disclaimer
This analysis is prepared by Dhwani Patel (SEBI Registered Research Analyst – INH200006608).
All information is for educational purposes only and should not be considered investment advice.
Trading in securities involves significant risk; please consult your financial advisor before investing.
