Nifty 50 (25,285) rallied 1.6 per cent whereas Nifty Bank (56,610) was up 1.8 per cent over the last week. As it stands, indications suggest further appreciation. Here is the analysis of futures and options data of both indices:
Nifty 50
Nifty futures (October) (25,411) extended the gain by 1.6 per cent last week. Importantly, it surpassed the hurdle at 25,250, reinforcing the prevailing bull trend.
That said, the contract might witness some moderation in price from the current level, possibly to 25,180-25,250 price band. After this, Nifty futures can restart the rally. Given the prevailing chart set-up, we predict it to cross over the nearest barrier at 25,500 and touch 25,750 in the near term.
But in case the contract slips and breaches the support at 25,180, it can lead to a further decline to 25,000, a support. Subsequent support is at 24,750.
As far as futures open interest is concerned, while the October contract rallied, there was a drop. It fell from about 180 lakh contracts to 175 lakh contracts over the past week. An upward move in price along with a drop in open interest denote short covering.
While the aforesaid may not be a strong bullish sign, the Put Call Ratio (PCR) of nearest weekly and October monthly options stood at 1.40 and 1.10 respectively. A ratio greater than 1 is a positive signal as there have been comparatively more put options selling than call options. Traders sell puts when they are bullish.
Overall, we expect Nifty futures to see a dip to 25,250 and then embark on a rally to 25,750.
Strategy: Retain the long position on Nifty futures (October) initiated at 25,000. But revise the stop-loss from 24,700 to 25,180. The target can be shifted upward from 25,500 to 25,750 as the chart indicates further rally.
Option traders can buy October 25200-call (₹325.90). Go long at ₹325 and ₹225. Place a stop-loss at ₹125. When the premium rises to ₹450, raise the stop-loss to ₹350. Exit at ₹550.
Nifty Bank
Nifty Bank futures (October) (56,862) was up 1.8 over the last week. Consequently, it moved past the resistance at 56,250, confirming the inverted head and shoulder pattern. As per this chart set-up, the contract can touch 58,250.
In case there is a decline from the current level, Nifty Bank futures can find support at 56,500. Below this is the support band of 56,000-56,100. Given the current upward momentum, a decline below 56,000 is less likely.
Like Nifty futures, Nifty Bank futures also saw short covering as the open interest dropped during the rally. Over the past week, the open interest of October futures decreased to 17.8 lakh contracts from 19.2 lakh contracts.
Although short covering may not show strength of bulls, the PCR of options gives a positive sentiment. The PCR of October expiry options stood at 1.15 on Friday, which is a sign of optimism.
Overall, we cannot reject the possibility of a temporary correction. However, this is likely to be restricted to 56,500. A rally, either from the current level of 56,862 or after a dip to 56,500, can lift Nifty Bank futures to 58,250.
Strategy: Buy Nifty Bank futures at 56,860 and on a dip to 56,500. Place initial stop-loss at 56,000. When the contract rises to 57,800, revise the stop-loss to 57,200. Exit at 58,250.
Instead of buying futures, traders can consider call options. We suggest October 57,000-call (₹421.60). Buy at ₹420 and accumulate on a dip to ₹250. Place stop-loss at ₹100. When the premium goes up to ₹800, trail the stop-loss to ₹600. Exit at ₹1,000.
Published on October 11, 2025
