The market continued to display mixed sentiment on Tuesday, with the Nifty extending weakness while the Bank Nifty managed a recovery from intraday lows. Volatility remains elevated as traders weigh technical signals, options positioning, and sector rotation dynamics ahead of the new trading session.

Here’s a complete breakdown of the market setup for December 10, 2025.

1) Key Levels for the Nifty 50 (25,840)

Resistance (Pivot Points):

• 25,905
• 25,951
• 26,026

Support (Pivot Points):

• 25,756
• 25,710
• 25,635

Special Technical Formation

The Nifty 50 formed a bearish candle with both upper and lower shadows, sustaining a lower-high, lower-low pattern, suggesting ongoing weakness amid volatility.

Key technical observations:

• Price tested the 50 DEMA and lower Bollinger Band intraday
• 10-day and 20-day EMAs continue to slope downward
• RSI slipped below 50, now at 47.08, signaling fading momentum
• MACD retains bearish crossover, with the histogram deepening

Conclusion:
Short-term sentiment remains weak, with the index vulnerable to further corrective moves unless strong buying emerges at lower supports.

2) Key Levels for the Bank Nifty (59,222)

Resistance (Pivot Points):

• 59,336
• 59,450
• 59,633

Support (Pivot Points):

• 58,970
• 58,856
• 58,673

Fibonacci Levels:

• Resistance: 59,466 / 60,887
• Support: 58,632 / 58,280

Special Technical Formation

Unlike the Nifty, the Bank Nifty displayed resilience and formed a bullish candle after recovering sharply from the day’s low.

Additional cues:

• Sustained above the 20 DEMA and Bollinger midline — a positive sign
• RSI flattened at 56.67, still below reference line
• MACD remains bearish, with continued weakness in histogram
• Stochastic RSI moved slightly above the lower band

Conclusion:
Mild positivity with caution — the index shows strength at lower levels but lacks strong upward momentum.

3) Nifty Call Options Data

• Highest Call OI: 26,000 strike (78.25 lakh contracts) → Major short-term resistance
• Next levels with high OI:
  • 26,500 strike (60.99 lakh)
  • 26,100 strike (57.6 lakh)

Call Writing:

• Strongest at 26,000 strike → +37.15 lakh contracts
• Followed by:
  • 25,900 strike → +32.68 lakh
  • 25,800 strike → +27.03 lakh

Call Unwinding:

• Maximum at 26,750 strike → –58,650 contracts

Conclusion:
Call writers continue to dominate, adding pressure near the 26,000 resistance zone.

4) Nifty Put Options Data

• Highest Put OI: 25,500 strike (50.76 lakh contracts) → Strong base support
• Next key strikes:
  • 25,400 strike (47.24 lakh)
  • 25,800 strike (44.85 lakh)

Put Writing:

• Strongest at 25,400 strike → +34.98 lakh contracts
• Followed by:
  • 25,800 strike → +24.61 lakh
  • 25,500 strike → +20.2 lakh

Put Unwinding:

• Highest at 26,200 strike → –3.06 lakh contracts

Conclusion:
Support levels are developing lower, indicating caution and shifting bullish protection downward.

5) Bank Nifty Call Options Data

• Highest Call OI: 60,000 strike (15.07 lakh contracts) → Major resistance
• Next zones:
  • 59,500 strike (12.77 lakh)
  • 61,000 strike (8.07 lakh)

Call Writing:

• 59,000 strike → +58,800 contracts
• 59,300 strike → +55,300
• 59,200 strike → +49,630

Call Unwinding:

• 59,500 strike → –1.51 lakh
• 59,800 strike → –54,565
• 61,500 strike → –54,355

Conclusion:
Call writers are active, but unwinding at higher strikes shows uncertainty for upward continuation.

6) Bank Nifty Put Options Data

• Highest Put OI: 59,500 strike (16.47 lakh) → Strongest support
• Next key levels:
  • 59,000 strike (12.82 lakh)
  • 58,500 strike (9.85 lakh)

Put Writing:

• Highest at 58,900 strike → +79,485 contracts
• Followed by:
  • 59,000 → +66,010
  • 58,800 → +39,305

Put Unwinding:

• 59,800 strike → –45,535
• 58,000 → –24,220
• 60,300 → –14,280

Conclusion:
Firm support around 59,000–59,500, though unwinding at higher strikes hints at caution.

7) Put–Call Ratio (PCR)

• PCR increased to 0.86 (from 0.64 earlier)

Interpretation:

• Values above 0.7 → Increasing bullish sentiment
• Sharp recovery in PCR suggests fresh Put writing and short covering

However, the market is not firmly bullish yet — just stabilizing from oversold zones.

8) India VIX

• India VIX slipped 1.55% to 10.95
• Continues to trade below all key moving averages

Interpretation:

Low VIX = Market comfort, reduced volatility
But extremely low VIX also increases the probability of a sudden sharp move.

Final Outlook for December 10

• Nifty remains weak, with technical indicators suggesting further downside or consolidation
• Bank Nifty shows resilience, but momentum indicators remain weak
• Options data indicates strong resistance overhead for both indices
• Low VIX provides stability but also warns of potential sudden volatility

Overall Bias:
🔻 Nifty – Weak / Cautious
🔹 Bank Nifty – Mildly Positive but with Caution

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.