Nifty 50 (26,186) and Nifty Bank (59,777) ended flat last week. Here is our analysis of the futures and options data of both indices.
Nifty 50
Nifty futures (December) (26,333) declined in the first half of last week. But then it recovered, particularly on Friday, cutting the weekly loss to 0.2 per cent. The contract rebounded on the back of the support at 26,050 where a trendline support coincides.
That said, the contract remains below the resistance at 26,500. Only a decisive breakout of this can result in a fresh leg of rally. Notable barriers above 26,500 are at 27,000 and 27,500.
On the other hand, if Nifty futures declines from the current level, it can find support between 26,050 and 26,000. Until the contract trades above the latter, the broader inclination will be bullish.
In case the support at 26,000 is breached, Nifty futures can drop to 25,750 and 25,600.
As Nifty futures dropped by 0.2 per cent last week, the open interest of the December contract rose from 136 lakh contracts to 147 lakh contracts.
While a price drop along with an increase in open interest denotes short build-up, considering the recovery in the second half of last week and the broader price action, it can be concluded that the bears have not gathered enough momentum to influence the trend.
With respect to options, Put Call Ratio (PCR) of weekly and monthly options stood at 1.2 and 1.1 respectively. A ratio greater than 1 is a positive sign.
Considering all the aforementioned factors, although Nifty futures maintain a bullish bias, there is some element of uncertainty at the moment.
Strategy: Refrain from trading for now. Go long 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) (60,056) dropped in the first half of last week and marked a low of 59,315 on Wednesday. However, it rallied on Friday reclaiming the 60,000-mark, indicating that the bulls are regaining traction.
We expect the contract to move up further and touch 61,000 in the near term. A breakout of this can open the door for a rally to 62,000.
On the other hand, if Nifty Bank futures declines from the current level, it can find support at 59,400, its 20-day moving average. Below this is the key base of 59,000, an important level from the short-term trend perspective. A clear breach of this can turn the outlook bearish. Nearest notable support below 59,000 can be spotted at 58,250.
Over the last week, the open interest of December Nifty Bank futures slightly dropped from 15.8 lakh contracts to 14.8 lakh contracts. But since the contract ended flat last week, the movement in open interest do not carry significance.
Coming to the options, the PCR of December expiry stood at 1 on Friday.
Overall, the futures and options data do not show a definite indication. Nevertheless, the price shows that Nifty Bank futures stays above a key support level and the uptrend is intact.
Strategy: Last week, we suggested buying Nifty Bank futures (December) at an average of 59,784. Retain this trade and maintain 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 December 6, 2025
