Derivatives Analysis by SAMCO Securities
by Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities
🕗 Last Update: 23 December 2025, 8.00 AM
Buy-on-Dips Intact as Nifty Hovers, Near Key Double-Bottom Neckline
Nifty index continued to exhibit a resilient bullish structure, maintaining a sequence of higher highs and higher lows while sustaining at elevated levels despite intraday volatility. The benchmark is currently displaying an interesting and constructive price setup, hinting at the potential for fresh record highs. Notably, the index is attempting a breakout from a double-bottom formation and is hovering near its neckline. A sustained follow-through above the 26,250 mark could trigger a sharp bullish acceleration in the coming sessions.
On Tuesday, the index remained largely range-bound and closed almost flat, ending marginally higher by 4.75 points at 26,177.15.
From a trend perspective, the Nifty continues to trade above its 10-day and 20-day exponential moving averages, underscoring strong downside protection. Additionally, the index has firmly held above the psychological 26,000 level, which is now acting as a crucial support base. Given the positive undertone, any retracement toward this psychological mark is likely to attract fresh buying interest, as participants continue to accumulate bullish positions near key support zones.
Technically, the setup remains favourable for further upside momentum, with the possibility of new lifetime highs unfolding over the next few trading sessions. The persistent higher-low structure, combined with the index being on the verge of confirming a double-bottom breakout, strengthens the bullish outlook. Momentum indicators further reinforce this optimism, as the Relative Strength Index (RSI) remains comfortably above the neutral 50 mark, reflecting steady accumulation and sustained buying interest at lower levels.
Derivatives Snapshot
The derivatives space echoes a growing optimistic bias. Put writers have aggressively added fresh positions at at-the-money and nearby strikes, reinforcing a strong support base with every minor decline. In contrast, call writers have reduced exposure at lower strikes and rolled over positions to higher levels, signalling expectations of a continued “buy-on-dips” environment.
A significant build-up of nearly 79.73 lakh call contracts at the 26,200 strike has established this zone as an immediate resistance area. On the flip side, the addition of approximately 1.19 crore put contracts at the 26,000 strike provides a solid cushion on the downside. The Put-Call Ratio (PCR) has improved to 1.08, highlighting a rise in bullish sentiment and indicating that buyers are actively defending lower levels.
Market Outlook
The Nifty continues to signal an improvement in market sentiment, with declines being consistently absorbed near support zones while the index trades close to the breakout point of its double-bottom structure. The ongoing higher-low formation and sustained trade above short-term moving averages suggest that downside risks remain limited. However, sellers continue to maintain a presence in the 26,200–26,250 resistance band.
On the downside, the 26,000–25,900 region has emerged as a critical demand zone and will be key in preserving short-term stability. The migration of call writers to higher strikes, alongside aggressive put additions near at-the-money levels, indicates that market participants are defending every minor dip.
A decisive breakout and sustained close above 26,250 could pave the way for a short-covering rally, potentially driving the index toward fresh all-time highs near the 26,400 zone. Conversely, any pullbacks toward 25,900 are likely to be viewed as buying opportunities, keeping the broader buy-on-dips strategy firmly intact.
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