Put OI Addition Holds Rising Support Levels

Based on the options data on NSE after the last Friday session, the resistance level remained at 26,000CE for a second successive week, while the support level moved up by 1,000 points to 26,000PE. Highest Open Interest (OI) on Put and Call options at the same strike i.e. 26,000 further confirms the range-bound trading.

The 26,000CE has highest Call OI followed by 26,500/ 26,800/ 25,000/ 24,500/ 25,300/ 25,800/ 25,700 strikes, while 26,800/ 25,800/ 25,300/ 24,900 strikes recorded reasonable addition of Call OI. Majority Call ITM strikes witnessed minute to significant OI fall.

Coming to the Put side, highest Put OI is seen at 24,000PE followed by 23,000/ 23,500/ 24,600/ 24,400/ 24,200/ 23,800/ 23,300/ 22,000 strikes. Further, 24,800/ 24,900/ 24,700/ 23,500 strikes hold moderate to heavy build-up of Put OI. Only 3-4 Put OTM strikes had modest 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 was seen at the 25,000 strike, while the notable Put Open Interest was at the 24,500 strike. For Bank Nifty, the prominent Call OI was seen at the 55,500 and 56000 strikes, whereas notable Put OI at the 55,000 strike.”

“The rupee strengthened following a decline in the dollar index and buying in Indian equities. The Indian market ended Friday’s session on a positive note, but closed the week relatively flat. The Nifty slipped 0.67 per cent for the week, while the Bank Nifty was down 0.08 per cent. Sector-wise, realty, capital markets, and PSU banks were the top gainers, whereas consumer durables, midcaps, and auto stocks saw declines,” added Bisht.

For the week ended May 23, 2025, BSE Sensex closed at 81,721.08 points, a net fall of 609.51 points or 0.74 per cent, from the previous week’s (May 16) closing of 82,330.59 points. NSE Nifty too declined by 166.65 points or 0.66 per cent to 24,853.15 points from 25,019.80 points a week ago.

Bisht forecasts: “In the previous week, the Nifty index tested the crucial support level of 24,500 points, rebounded, and closed above 24,800 points. Moving forward, the 24,500 level remains pivotal. A sustained breach below this support could trigger a decline toward 24,300 points. However, on the upside, immediate resistance is observed near the 25,200 mark.”

India VIX rose 0.12 per cent marginally to 17.28 level. “Implied Volatility for Nifty’s Call options settled at 15.03 per cent, while Put options concluded at 15.95 per cent. The India VIX, a key market volatility indicator, closed the week at 17.26 per cent. The Put-Call Ratio of Open Interest for the week was 0.79,” observes Bisht. The volatility gauge rose over two per cent during the past one month.

Nifty futures clocked Rs17,879.09 crore turnover with OI declining by 25,125 contracts or 0.24%. In F&O space, FIIs sold over Rs11,260 crore and bought more than Rs5,100 crore during the last week.

Bank of India witnessed over 2.70 per cent rise in OI, while Indian Bank, RBL Bank, Axis Bank, Bank of Baroda, IndusInd Bank, Union Bank, PNB, Canara Bank, SBi recorded OI fall in 2-6% range. And reasonable arbitrage opportunities are visible in MRF, Page Ind, Dixon, Coforge, Maruti, Balkrishna Ind, Persistent stocks.

Bank Nifty

Bank Nifty NSE’s banking index closed the week at 55,398.25 points, a hefty recovery of 43.35 or 0.078 per cent from the previous week’s closing of 55,354.90 points.