Derivatives Analysis by SAMCO Securities
by Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities
🕗 Last Update: 27 October 2025, 8.00 PM
Nifty on firm footing ahead of expiry; sustained strength above 25,700 reaffirms bullish bias
Nifty index regained its upward momentum ahead of the monthly expiry tomorrow (Tuesday), reversing after a brief two-day losing streak. The index has successfully completed a healthy retest of its breakout neckline and is now exhibiting renewed signs of steady bullish continuation. Holding comfortably above its previous resistance levels, Nifty has consistently respected prior swing lows while forming a series of higher highs and higher lows — reaffirming a robust and well-established bullish structure.
On Monday, the Nifty advanced 178.45 points to close at 25,966.75, maintaining its position above the breakout neckline with strong follow-through buying interest. From a technical standpoint, the index has built a firm base above its key support of 25,700. Its sustained position above the 10- and 20-day exponential moving averages (DEMA) continues to lend solid support, reinforcing the underlying positive bias. Every minor dip is being actively bought, indicating persistent accumulation by market participants. The 25,750–25,650 zone remains a crucial “buy-on-dips” pocket, supported by multiple technical factors including the breakout neckline and previous swing lows.
On the upside, the index faces intermittent resistance around the 26,000–26,100 zone, coinciding with prior supply levels. However, given the ongoing formation of higher highs and higher lows, the probability of a decisive breakout above this zone remains elevated. As long as the index sustains above 25,600, the medium-term outlook stays decisively positive, supported by consistent bullish price action.
Momentum indicators also align with this optimistic view—RSI (14) remains comfortably above the 70 mark, reflecting strong momentum and sustained strength in the uptrend. Hence, 25,700–25,600 serves as a critical support cluster, while immediate resistance is seen at 26,000–26,100.
Derivatives Snapshot:
Derivatives data points toward a cautiously optimistic setup ahead of the monthly expiry, with both long and short positions being actively built—signalling a range-bound yet positive sentiment. A substantial open interest (OI) of 1.36 crore contracts at the 26,100 call strike highlights a significant resistance area, while heavy put OI of 1.52 crore contracts at the 25,900 strike reaffirms strong support at lower levels.
Interestingly, the balanced buildup of positions on both sides suggests that the index could continue to oscillate within a defined range in the near term. The Put-Call Ratio (PCR) rose sharply to 1.02 from 0.65, underscoring a bullish undertone and indicating that any corrective move is likely to attract fresh buying from positional traders.
Volatility Check:
India VIX edged up marginally by 2.31% on Monday, gradually inching higher but still reflecting a composed and confident market sentiment. Market participants appear strategically positioned with disciplined risk management despite lingering global uncertainties. The low-volatility environment underscores a phase of measured optimism and steady participation from both traders and investors.
Market Outlook:
Nifty continues to showcase a resilient bullish setup, with every dip being swiftly absorbed—a hallmark of a healthy uptrend. Although the index appears slightly stretched in the short term, this consolidation phase provides opportunities for accumulation in alignment with the prevailing higher high–higher low pattern. Persistent put writing at lower strikes further reflects traders’ confidence in the ongoing rally.
A sustained move above the 26,100 mark could trigger fresh long positions and short-covering, propelling the index toward 26,300 in the near term. On the downside, strong demand is expected around 25,600–25,700, which should cushion any short-term corrections. As long as Nifty holds above this crucial support band, the broader trend remains decisively bullish. Traders are advised to maintain a “Buy-on-Dips” approach, with a close above 26,000 likely to unleash the next leg of the uptrend.
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