Derivatives Analysis by SAMCO Securities
by Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities
🕗 Last Update: 7 December 2025, 8.00 AM
Nifty logs a solid breakout, keeping uptrend firmly intact
Nifty concluded the week on an upbeat note, staging a steady rebound from lower zones and reinforcing a continuation structure that favours further upside. The index closed decisively above its previous three sessions’ highs, reflecting a clear revival in bullish conviction, supported by the positive tone of the Monetary Policy Committee (MPC). A firm base has now been established, accompanied by a continuation pattern marked by higher lows, offering ample room for the ongoing uptrend to extend. On Friday, the index added 152.70 points to settle at 26,186.45, forming a robust bullish trend-continuation candle while carving out a fresh swing low. The Nifty has consistently taken support at its 20-DEMA and has been witnessing swift recoveries from this dynamic support zone, reaffirming the underlying strength.
Technically, Nifty delivered a breakout above the previous three-session range with a strong bullish candle, endorsing continued upside momentum. With the index reclaiming territory above 26,150—its earlier resistance zone now acting as support—an upward trajectory toward 26,350 has opened up. On the downside, the 25,900–25,800 band, aligned with the 0.382–0.50 Fibonacci retracement cluster, forms a solid demand pocket and a meaningful base for buyers.
In the near term, 26,350 remains the immediate barrier to watch. A sustained move beyond this level would reaffirm bullish continuity. As long as the index holds above 25,800, any dip is likely to invite fresh buying interest. Momentum indicators echo this setup, with the 14-day RSI hovering near the 60 mark, signalling a strengthening of bullish momentum. Immediate resistance is placed at 26,350, while 25,800 continues to serve as a critical support zone.
Derivatives Snapshot
The derivatives setup reflects a constructive shift in market sentiment, with put writers aggressively adding positions across at-the-money (ATM) and near-term strikes. Conversely, call writers have unwound partial exposure and migrated to higher strikes, indicating expectations of continued buy-on-dips behaviour.
A sizeable accumulation of nearly 1.05 crore call contracts at the 26,200 strike positions it as a prominent resistance. Meanwhile, hefty put open interest of 1.73 crore contracts at the 26,000 strike reaffirms it as a strong support base. The Put-Call Ratio (PCR) rebounded to 1.19 from 0.80, signalling a sharp rise in bullish positioning and renewed optimism, with put writers regaining dominance at lower levels.
Market Outlook
Nifty’s breakout above its immediate resistance and a sustained higher-low formation underline the continuation of the prevailing uptrend. The index has wrapped up the week on a constructive note, showcasing renewed buying interest from lower zones.
With the 20-DEMA and the crucial 0.382–0.50 Fibonacci retracement cluster forming a strong demand area, dips continue to attract tactical accumulation. The shift of call writers to higher strikes, alongside aggressive additions by put writers at ATM levels, reflects a bullish-to-optimistic bias among market participants.
A sustained breakout above 26,330 would signal the next leg of rally toward 26,500. On the downside, holding above 25,800 keeps bulls firmly in command and maintains the buy-on-dips setup for the near term.
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