Nifty 50 (26,042) posted a gain of 0.3 per cent last week whereas Nifty Bank (59,011) was down by a marginal 0.1 per cent. Here’s our analysis of the derivatives data of both indices:
Nifty 50
Nifty futures (January) (26,235) was up 0.2 per cent last week. But, while it gained in the first half of last week, it fell during the second half. It has also slipped below the 21-day moving average, which is now at 26,288.
However, this has not altered the trend. There is a chance for further dip from the current level but only to some extent. As long as the support at 26,000 stays valid, the bulls will have an edge over the bears.
A resumption in the rally, either from the current level or after some more correction, can eventually lift Nifty futures (January) to 27,000. Although the price band between 26,500 and 26,600 is a potential resistance, we expect the contract to surpass this level.
Substantiating the bullish inclination, the Put Call Ratio (PCR) of both December (1.1) and January (1.6) expiry options stood above 1. A ratio greater than 1 is because of the relatively higher number of put option selling. Traders sell puts when they are positive.
Also, last week, along with a positive close in Nifty futures (January), the open interest of the contract saw an increase from 17.2 lakh contracts to 56.6 lakh contracts, implying long build-up on a weekly basis.
Overall, even though there is a possibility for Nifty futures (January) to witness some more decline, the broader trend remains bullish.
Strategy: We had suggested buying Nifty futures (December) at 26,145. As the contract is nearing expiry, traders can roll-over the long to January contract.
That is, sell the December contract at 26,060 and buy the January contract at 26,235. Target and stop-loss can be 27,000 and 25,900 respectively.
Traders who bought 26000-call option (December) (purchasing price is ₹158.85) can exit the contract at the current price of ₹100. Post this, consider buying 26500-call of January expiry (₹152.65). Go long at ₹150 with a stop-loss at ₹70. Exit at ₹380.
Nifty Bank
Nifty Bank futures (January) (59,439) was down 0.3 per cent last week. It dropped in the last three sessions, indicating a good selling momentum. However, it is now trading in a key demand zone between 59,300 and 59,500. Until this region holds, the outlook will not turn bearish.
A recovery from the current level can lift the contract to 60,000. A breakout of 60,000, which is likely to occur, can take Nifty Bank futures (January) to 60,750.
On the other hand, if the support at 59,300 is breached, the near-term outlook can turn bearish. In this scenario, the contract can see a quick drop to 58,500, a support. Subsequent support is at 58,250.
The futures and options data do not give a definite signal. While the open interest of January futures shot up from 2.8 lakh contracts to 6.2 lakh contracts over the last week, indicating a short build-up, the PCR of December options stands at 1. Also, the PCR of January options is currently at 1.8, showing a positive bias.
Since the support band of 59,300-59,500 remains valid now, we stay inclined for a rebound.
Strategy: Exit Nifty Bank futures (December) long (initiated at 59,784) at the current level of 59,065. And then, buy Nifty Bank futures (January) at 59,430. Place stop-loss at 59,250.
When the contract rises to 60,000, trail the stop-loss to 59,500. Exit at 60,750.
Instead of futures, traders can buy January 60000-call (₹452.55). Buy at ₹450 with a stop-loss at ₹250. When the price goes up to ₹750, revise the stop-loss to ₹600. Exit at ₹900.
Published on December 27, 2025
