Derivatives strategy by SAMCO Securities

by Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities

🕗 Last Update: 6 March 2026, 7.00 AM

Bearish trend deepens in Nifty as 10-DEMA slips below 200-DEMA

Nifty index remained under pressure and closed at 24,450.45, down 315.45 points (-1.27%), as persistent selling dragged the index closer to the crucial 24,300 support zone, which now emerges as a make-or-break level for the near-term trend. The price structure continues to reflect a series of lower highs, highlighting sustained supply at higher levels.

Technically, the 10-DEMA has crossed below the 200-DEMA, indicating a deterioration in short-term momentum and a strengthening bearish undertone. Importantly, the 24,300 region coincides with the 20-DEMA, making it a critical level for bulls to defend. Momentum indicators remain weak, with the RSI hovering below the 40 mark, reflecting prevailing bearish momentum.

On the derivatives front, the Put–Call Ratio (PCR) stands near 0.67, signaling aggressive call writing and a cautious bias. Options data also shows significant call open interest around 24,600–24,800, marking it as the immediate resistance band, while put writers are active near 24,300, followed by 24,000, suggesting ongoing defense of this support. As long as the index manages to hold 24,300, a technical pullback cannot be ruled out; however, any rise is likely to be viewed as a selling opportunity unless the index decisively reclaims the 24,600–24,800 resistance zone. A break below 24,300 could open the door toward 24,000, reinforcing the ongoing bearish structure.

Bank Nifty weakens with lower-high pattern; 57,500 support under spotlight

Nifty Bank index remained under heavy selling pressure and closed at 57,783.25, down 1,272.60 points (-2.15%), extending its recent decline and maintaining a clear lower-high structure, which reflects persistent supply at higher levels. The index has now slipped toward the 57,500 region, a crucial support zone that aligns closely with the 200-day moving average, a level that has historically acted as a strong rebound point for the index. This area now becomes a critical support zone for the bulls, as a sustained hold here could trigger a technical pullback after the recent sharp decline.

However, momentum indicators remain weak, with the RSI slipping below the 40 mark, signaling strengthening bearish momentum and limited buying strength at present.

From a derivatives perspective, the Put–Call Ratio (PCR) stands near 0.80, indicating a cautious undertone in the options segment. The options data highlights significant call open interest clustered around the 58,500–59,000 zone, suggesting that rallies toward this region may face stiff resistance. On the downside, put writers are seen building positions near the 57,500 level, reinforcing it as an immediate support base. As long as the index manages to defend the 57,500 region, a short-term rebound cannot be ruled out; however, any recovery is likely to encounter selling pressure near the 58,500–59,000 resistance band, keeping the broader outlook cautious unless the index manages to reclaim this zone decisively.

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