Derivatives Analysis by SAMCO Securities
by Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities
🕗 Last Update: 16 November 2025, 8.00 AM
Nifty Ends Two-Week Losing Run; Bullish Pattern Signals Renewed Strength Near 26K
Nifty index finally broke its two-week losing streak, forming a bullish continuation pattern as strong buying interest resurfaced at lower levels. The index continues to maintain a higher-low formation, reinforcing an optimistic and structurally healthy technical setup. Despite lingering around the psychological 26,000 mark—which remains a crucial overhead barrier—Nifty has held firmly above the important 25,800–25,700 zone, supported by a bullish gap that continues to act as a dependable demand pocket for buyers. On Friday, the index added 30.90 points to settle at 25,910.05, forming a robust bullish candle that underscored buyers’ dominance. Moreover, the index’s sustained close above the previous week’s high, that further strengthens the improving structure and indicates that bulls are gradually reclaiming command over market momentum.
From a technical perspective, the Nifty is showcasing a steady continuation pattern, with the broader setup remaining constructive as the index comfortably trades above its 10-day and 20-day exponential moving averages. These moving averages—earlier hurdles—have now turned into dynamic support regions. Additionally, the index’s ability to hold above the bullish gap around 25,700–25,780 continues to reinforce the short-term positive bias and keeps the ongoing uptrend well-aligned. As long as Nifty stays above the 25,700–25,650 support belt, traders are likely to maintain a “buy-on-declines” mindset.
On the upside, immediate resistance stands at the 26,000 zone. A sustained move above this level could unlock fresh momentum-driven buying, potentially propelling the index towards higher trajectories. Conversely, a slip below 25,750 may attract renewed selling pressure and could temper the optimism in the near term. Momentum indicators remain aligned with the bullish view—the 14-day RSI hovering above 60 reflects healthy short-term strength. Going forward, 25,750 will continue to act as a crucial support marker, while the 25,950–26,000 band is expected to serve as a decisive resistance zone.
Derivatives Snapshot:
The current derivatives landscape indicates a mildly cautious yet constructive undertone. Call writers have been actively building positions at nearby strikes, whereas put writers are accumulating interest at lower levels—signalling a consolidation phase with an upward tilt. A substantial open interest buildup of nearly 1.50 crore contracts at the 26,000 call strike underscores its importance as a major resistance ceiling. Meanwhile, strong put OI of about 90.86 lakh contracts at the 25,500 strike reaffirms a firm support base.
Simultaneous additions in both call and put writing reveal balanced positioning with a positive bias, suggesting expectations of range-bound trade. The Put-Call Ratio (PCR) cooled to 0.79 from 1.03, reflecting a cautious sentiment as participants maintain short positions with increasing conviction.
Market Outlook:
Nifty continues to oscillate within a well-defined trading band between 26,000 and 25,750, even as it successfully reversed its two-week losing phase. A decisive breakout on either side will be key in shaping the next directional move. The index’s strong footing above major moving averages and the conversion of previous resistance levels into dependable support zones collectively bolster the short-term bullish sentiment. However, persistent FPI outflows across both cash and derivatives segments warrant measured caution.
While call writers have aggressively added positions near upper strikes, put writers sustaining positions at lower levels point to an ongoing battle between bulls and bears—resulting in a cautiously positive yet range-bound outlook. A clear breakout above 26,000 could spark a fresh uptrend, whereas a fall below 25,700 may induce short-term weakness. Until a directional move emerges, traders may prefer a selective and disciplined stance, capitalizing on opportunities that arise from moves beyond this consolidation range for clearer trend validation.
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