Resistance drops 1,500pts amid weak PCR

Hans India

2 days ago

Thelatest options data on NSE is pointing to a 1,500 points fall in resistance level as highest Put Open Interest (OI) is at 25,000CE, while the support level remained at 24,000PE for a third consecutive week. The 25,000CE has highest Call OI followed by 25,200/ 25,500/ 25,100/ 25,300/ 24,900/ 26,500/ 25,600/ 24,850/ 25,600/ 26,100/ 27,000/ 27,400 strikes, while 25,000/ 24,900/ 24,800/ 25,200/ 25,300/ 25,700/ 25,800/ 24,800 strikes recorded hefty build-up of Call OI.
Very minute Call OI fall is visible on 2 deep Call OTM strikes, select deep ITM strikes.
Coming to the Put side, the maximum Put OI is seen at 24,000PE followed by 24,500/24,200/ 24,300/ 24,600/ 24,700/ 24,800/ 24,900 strikes. Further, 24,700/ 24,600/ 24,850/ 24,300 strikes recorded reasonable addition of Put OI.
Put ITM strikes from 25,000PE inwards witnessed moderate Put OI fall.
Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, said: 'In the derivatives market, prominent Call Open Interest for Nifty seen at the 25,000 and 25,200 strike, while the notable Put Open Interest was at the 24,500 and 24,700 strike. For Bank Nifty, the prominent Call Open Interest was seen at the 57,000 strike, whereas notable Put Open Interest at the 56,000 strike.' The Implied Volatility (IV) fell over 50 per cent to 8.89 level for Call highest OI base, while it was hovering at 15 level, a marginal decrease from previous week, at highest Put OI base.
It's revealing wide-range trading with reasonable volatility for the week ahead.
'The market had a bit of a roller-coaster ride last week. Weak earnings, especially from IT companies, pulled the market down early on. But things turned around as hopes grew for a trade deal between India and the US, thanks to the recently announced trade deal between US and Japan.
This positive news gave the market a much-needed boost. Sectors like healthcare, financial services, and other service-related industries did well, while media, real estate, and IT stocks struggled and ended the week in the red,' added Bisht.
For the week ended July 25, 2025, BSE Sensex closed at 81,463.09 points, a fall of 294.64 points or 0.36 per cent, from the previous week's (July 18) closing of 81,757.73 points. NSE Nifty too declined by 131.40 points or 0.52 per cent to 24,837 points from 24,968.40 points a week ago. Bishtforeasts: 'A further decline toward 0.5 would reflect an extreme level, which could signal a potential bounce in the near term. Nifty closed the week near its technical support level of 24,800. A further decline could push it toward 24,500. For the upcoming week, support is seen at 24,500, while resistance is expected at 25,000 and 25,200.' India VIX rose 5.15 per cent to 11.28 level.
'Implied Volatility for Nifty's Call options settled at 9.99 per cent, while Put options concluded at 10.64 per cent.
The India VIX, a key indicator of market volatility, concluded the week at 10.72 per cent. The Put-Call Ratio based on Open Interest (PCR OI) stood at 0.75 for the week, indicating weakness in the market,' remarked Bisht.
Bank Nifty
Bank Nifty NSE's banking index closed the week at 56,528.90 points, 245.90 or 0.43 per cent lower from the previous week's closing of 56,283 points.