Nifty Trades Under Pressure Ahead of Monthly Expiry Settlement

The Nifty 50 witnessed selling pressure during the monthly expiry session as traders remained cautious amid weak market sentiment. The benchmark index opened at 22,732.45 before gradually slipping lower during the morning trade. It touched an intraday low of 22,569.65 and was trading around 22,584.20, down nearly 0.86%.

The derivatives setup suggests that market participants are positioning for a restricted trading range, with option writers playing a key role in determining the expiry movement. The current Put-Call Ratio (PCR) stands at 0.65, indicating comparatively higher Call open interest than Put open interest.

The maximum pain level for the expiry is placed at 22,600, which is close to the current spot price, suggesting that this zone could remain important throughout the session.

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Option Data Shows Bears Defending the Upside

The PCR reading below 1 highlights a stronger concentration of Call positions compared with Put positions. This indicates that traders are expecting resistance at higher levels and are actively writing Calls near the prevailing market zone.

The option chain shows significant Call open interest around the 22,600 strike, making it the first major hurdle for the index. Additional Call buildup is visible at 22,700 and 22,800 strikes, creating a broader resistance zone.

If the Nifty manages to sustain above 22,700, short covering from Call writers could provide support to the index. However, failure to cross this region may keep the benchmark under pressure during the expiry session.

22,500 Zone Emerges as Crucial Support

While Call writers are limiting upside, Put writers are attempting to protect lower levels.

The option chain indicates fresh Put additions around the 22,500 and 22,550 strikes, making this area an important support zone. Holding above 22,500 could help stabilise the index and keep expiry movement within a controlled range.

However, if the Nifty breaks below the 22,500 mark, it may trigger further unwinding of Put positions and increase downside pressure towards lower support levels.

Maximum Pain Suggests Expiry Battle Around 22,600

The maximum pain level at 22,600 is positioned close to the current Nifty spot, indicating a possible tussle between buyers and sellers around this level.

Since maximum pain represents the strike where option buyers collectively face the highest loss and option sellers potentially benefit the most, the index may see attempts to remain near this zone before expiry settlement.

However, elevated volatility and position adjustments during expiry can lead to sharp intraday swings.

Nifty Monthly Expiry Setup: Range-Bound Movement Likely

The overall derivatives structure points towards a cautious expiry session, with resistance placed at higher levels and support emerging near the lower end of the range.

For traders, the immediate levels to monitor remain:

• Support Zone: 22,500–22,550
• Immediate Resistance: 22,600–22,700
• Maximum Pain: 22,600

A decisive move above 22,700 may improve sentiment and trigger short covering, while a breach below 22,500 could increase selling pressure.

With PCR at 0.65 and significant Call concentration near current levels, the Nifty monthly expiry is likely to remain volatile, with the 22,500–22,700 range acting as the key battlefield between buyers and sellers.