Theresistance level remained at 27,000CE for a second consecutive week, while the support level rose 1,000 points to 26,000PE indicating narrowing down of trading range for the week ahead.
The 27,000CE has highest Call OI followed by 26,500/ 26,200/ 27,550/ 26,100 26,000/ 26,100/ 26,250/ 26,400/ 25,550/ 26,700/ 27,200 strikes, while 25,100/ 26,200/ 26,300/ 27,000/ 26,150/ 26,400 strikes recorded reasonable addition of Call OI. Call ITM strikes from 25,800 inwards witnessed modest OI fall. And Call OTM strikes from 27,200CE onwards too had marginal OI decline.
Fresh Call OI additions at lower strikes (24,500-27,000, especially 26,200 and 26,300) hint at renewed hedging, likely as traders expect Nifty to face headwinds near these zones. A decline in ITM Call OI from 25,800 upwards indicates long call unwinding, this may be traders booking profits as Nifty rises, or a reduction in bullish bets. Minor OI slippage in far OTM Calls beyond 27,200CE suggests traders are not aggressively betting on a major rally beyond those points currently.
Coming to the Put side, maximum Put OI is seen at 26,000PE followed by 25,000/ 25,500/ 25,200/ 25,100/ 25,600/ 25,300/ 25,200 strikes. Further, majority of ITM and OTM put strikes recorded modest to heavy OI decline. Deep Put OTM strikes 22,800/ 22,750/ 22,700 strikes have marginal Put OI addition.
The fact that ITM and OTM Put strikes generally saw OI declines signals profit-taking by bulls, possibly as Nifty moved up and Put sellers unwind positions. However, minor OI additions on deep OTM Puts (22,700-22,800) show hedges against a sharp correction, though activity here is marginal compared to main support zones.
The OI reduction at ITM Calls (profit booking) and ITM Puts (unwinding bullish bets) suggests that traders are locking in gains after a move up and are cautious about further near-term upside. The subdued OI beyond 27,200CE and new Put OI at very deep OTM levels indicate limited expectation for a runaway move in either direction.
Dhirender Singh Bisht, Associate Vice-President (Technical Research – Equity), SMC Global Securities Ltd, said: “In the derivatives segment, the highest Call Open Interest for Nifty was observed at the 26,500 and 26,200 strike levels, whereas notable Put OI was concentrated at the 26,000 and 25,900 strikes. For Bank Nifty, significant Call open interest was seen at the 60,000 and 59,500 strikes, with substantial Put OI at the 58,500 strike.”
The Implied Volatility (IV) eased at both the highest Call OI base (from 15.89 to 14.10) and the highest Put OI base (from 17.02 to 10.35). It indicates that Lower IV in both Calls and Puts often points to a consolidation phase or range-bound trading, where neither strong upward nor downward moves are anticipated imminently.
A decline in IV at the highest Call OI base suggests that traders expect less upside price volatility or reduced bullish volatility premium around those resistance levels. This usually happens when the market perceives less likelihood of a sharp rally beyond those strikes.
“Implied Volatility for Nifty’s Call options settled at 10.34 per cent, while Put options concluded at 11.37 per cent,” observes Bisht.
Similarly, the fall in IV at the highest Put OI base signals weakening bearish volatility expectations or reduced premium demand for downside protection at key support strikes-traders see less chance of a steep decline.
Option premiums are likely deflating, benefiting sellers while reducing potential gains for buyers betting on big moves.
“Both Nifty and Bank Nifty indices closed with a modest weekly gain of approximately 0.60 per cent. The market strengthened as FII selling eased, leading to selective buying near record highs. Sector-wise, IT, auto, and private banking stocks ended the week in positive territory, whereas realty, metal, and media sectors ended in red,” added Bisht.
For the week ended November 21, 2025, BSE Sensex closed at 85,231.92points, a further recovery of 669.14 points or 0.79 per cent, from the previous week’s (November 14) closing of 84,562.78 points. NSE Nifty too rose 158.10 points or 0.61 per cent to 26,068.15points from 25,910.05 points a week ago.
Bisht forecasts: “Nifty is currently trading near its record highs and approaching the upper boundary of the channel, indicating a potential resistance zone. However, it remains above the November series rollover levels as well as its long-term exponential moving averages. Any future retracement may be viewed as a buy-on-dip opportunity. In the upcoming sessions, resistance for Nifty is seen around 26,400, while support is placed near 26,000. Traders are advised to closely monitor rollover activity in the December series, as it will provide further clarity on the prevailing trend.”
India VIX rose 12.32 per cent to 13.63 level and signals growing fear or caution among investors, possibly due to recent market movements, economic data, or global uncertainties. The rising India VIX often leads traders to reduce leverage, tighten stop-loss levels, or adopt more defensive portfolio strategies.
“The India VIX, a key indicator of market volatility, concluded the week at 12.13 per cent. The Put-Call Ratio of Open Interest stood at 1.52 for the week,” remarked Bisht.
Bank Nifty
Bank Nifty, NSE’s banking index, closed the week at 58,867.70points, higher by 350.15 points or 0.59 per cent from the previous week’s closing of 58,517.55 points.