F&O Tracker: Hinges On A Support

Nifty 50 (25,694) and Nifty Bank (60,121) appreciated 1.5 per cent and 0.9 per cent respectively.

Last week had six trading sessions as the market remained open for the Union Budget presented on February 1.

There was volatility before and after the Budget, but the key indices managed to close the week in the green. Here is our analysis of derivatives data of both indices:

Nifty 50

Nifty futures (February) (25,735) rallied 1.3 per cent last week. After marking a low of 24,636 on February 1, the contract rose to hit an intra-week high of 26,320 on February 3 before closing the week at 25,735.

Despite the drop in the recent sessions, the price remains above the 21-day moving average, which is now at 25,608. There is a support ahead at 25,500. A rebound on the back of this can lift the contract to 26,500.

On the other hand, if the support at 25,500 is breached, the downswing can extend to 25,125 and 24,800, notable support levels.

While Nifty futures (February) closed the week in the green, it saw a fall in open interest – it dropped from 182 lakh contracts on January 30 to 160 lakh contracts on February 6. This shows short covering.

With respect to options, the Put Call Ratio (PCR) of weekly and monthly options stood at 0.86 and 1.14 respectively. A ratio greater (less) than 1 is bullish (bearish). So, as per options positioning, the weakness can be temporary.

Overall, the price action and the futures and options data give a slight bullish bias. But the key pivot is 25,500. As long as this level holds, the probability for a rally will be higher.

Strategy: Go long on Nifty futures (February) at 25,650. Place a stop-loss at 25,400. When the contract rises to 26,100, trail the stop-loss to 25,850. Book profits at 26,350.

Alternatively, one can buy 25,500-call of February monthly expiry, which closed at ₹373.70 on Friday. Buy at ₹300. Target and stop-loss can be at ₹700 and ₹100 respectively.

Nifty Bank

Nifty Bank futures (February) (60,252) was up 0.6 per cent last week. The contract witnessed a considerable sell-off on the Budget day and made a low of 58,046. But then it recovered to hit an intra-week high of 62,300 on February 3 and have now moderated to 60,252.

The contract has a support at 60,000 where a trendline coincides and its 21-day moving average is at 59,850. Therefore, the price region between 59,850 and 60,000 is a support band.

Nifty Bank futures can recover on the back of the support band. In such a case, it can rally to 61,500. A breakout of this can take it higher to 62,000. However, if the base at 59,850 is breached, it might see a deeper decline to 59,500 and 58,800.

Supporting the positive view, the open interest of February futures increased over the last week from 13.3 lakh contracts to 14.3 lakh contracts. Therefore, on a weekly basis, there has been a fresh long build-up.

Although options’ PCR shows a different picture as the ratio of February options stood at 0.90, showing a bearish tilt.

Nevertheless, the chart and the futures data substantiate a bullish bias and for a rally, the support band of 59,850-60,000 is the key.

Strategy: Buy Nifty Bank futures (February) at 60,100. Target and stop-loss can be 61,300 and 59,700 respectively.

Option traders can buy February 60,000-call (₹720.45). Go long at ₹580 with a stop-loss at ₹250. Exit the trade at ₹1,400.

Published on February 7, 2026