Nifty 50 (26,203) gained 0.5 per cent and Nifty Bank (59,753) was up 1.5 per cent over the last week. Here is our analysis of the derivatives data of both indices:
Nifty 50
Nifty futures (December) (26,387) was up 0.4 per cent last week. After witnessing a fall in the first half of last week, the contract rebounded from the support at 26,050.
As the contract rallied, the open interest shot up. It increased from about 77 lakh contracts on November 21 to 137 lakh contracts on November 28. A rally along with an increase in open interest denotes long build-up.
In options, the Put Call Ratio (PCR) of weekly and monthly (December) expiry stood at 1.1 and 1.2 respectively on Friday. A ratio greater than 1 is a positive sign as traders sell relatively a greater number of puts when compared to calls. Participants sell puts when their outlook is positive.
Overall, the futures and options data show a bullish inclination. However, there is a challenge ahead as shown by the chart.
From the current level, there is a resistance band of 26,450-26,500. Although the underlying Nifty index hit a record high, the futures was unable to rally past the barrier at 26,500.
If Nifty futures breaks out of 26,500, it will open the door for a fresh leg of rally. This upswing can potentially lift the contract to 27,000 and 27,500 in the near term.
On the other hand, if Nifty futures falls, it can find support at 26,250. Below there is another support at 26,000. A breach of this can turn the near-term outlook bearish. Key support levels below 26,000 are at 25,750 and 25,600.
Strategy: Stay out for now. Buy if Nifty futures (December) breaks out of the resistance at 26,500. Target and stop-loss can be 27,500 and 26,000 respectively. After initiating the trade, once the contract reaches 27,000, trail the stop-loss to 26,500.
Nifty Bank
Nifty Bank futures (December) (60,068) appreciated 1.5 per cent last week. As it happened, the open interest doubled. It went up from 8 lakh contracts on November 21 to 16 lakh contracts on November 28. This indicates long build-up.
In options, the PCR of December options stood at nearly 1.2 on Friday. This is a bullish indication. Broadly, the derivatives positioning highlights the bullishness.
Substantiating the positive inclination, the price of Nifty Bank futures shows that it has formed a clear higher high. The chart shows that the contract rebounded twice on the back of the support at 59,000 in the last week alone, showing good buying interests.
Therefore, as it stands, the probability of a rally from the current level is high. Nifty Bank futures can soon touch 61,000. A breach of this can lift it further to 62,000.
On the other hand, if there is a fall from the current level of 60,068, the contract can find support at 59,000 where the 21-day moving average coincides. Subsequent support is at 58,250. Only a breach of this will give some strength to the bears. Until then, the bulls will be in the driving seat.
Notable support levels below 58,250 are at 58,000 and 57,500.
Strategy: Traders can buy Nifty Bank futures (December) now at 60,068 and accumulate if it declines to 59,500. Place stop-loss at 58,800. When the contract touches 60,800, revise the stop-loss to 60,000. On a rally to 61,500, tighten the stop-loss further to 61,000. Book profits at 62,000.
Published on November 29, 2025
