The Indian equity benchmarks are poised for a cautious start to the week, with both the NIFTY 50 and BANKNIFTY indices hovering near critical support levels. Following a week of sustained selling pressure driven by underwhelming corporate earnings and foreign institutional outflows, market participants will be closely watching for signs of a potential rebound or further decline. Technical analysts have identified key levels that could dictate the market’s direction for the day.
The domestic market concluded the previous trading session on Friday, July 18, 2025, with significant losses for the third consecutive day. The NIFTY 50 index fell by 143.05 points, or 0.57%, to close at 24,968.40, slipping below the psychological 25,000 mark. The downturn was more pronounced in the banking sector, with the BANKNIFTY index plunging 545.80 points, or 0.96%, to settle at 56,283.00.
NIFTY 50 Trading Levels
Based on the underlying technical levels, the options chain for the NIFTY 50 indicates a significant battle between bulls and bears around the 25,000 mark.
- Resistance Levels (Call Side): The 25,100 and 25,200 call strikes are expected to act as formidable resistance zones. A high concentration of open interest is anticipated at these levels, indicating that call writers are active and do not expect the index to surpass this zone comfortably. A decisive move above 25,250 would trigger significant short-covering and could pave the way for a sharp upward rally. The 25,300 call strike is the next major hurdle.
- Support Levels (Put Side): On the downside, the 25,000 put strike holds immediate relevance. However, the most critical support is indicated by significant open interest at the 24,900 and 24,800 put strikes. These levels are expected to attract put writers, who will try to defend this zone. A breach below 24,875 could lead to an unwinding of put positions, accelerating the downward move.
- Trading Range: For the day, the NIFTY is expected to trade within a broad range of 24,800 to 25,200.
BANKNIFTY Trading Levels
The BANKNIFTY, having shown relative weakness, also has well-defined levels according to its options data.
- Resistance Levels (Call Side): Significant resistance is placed at the 56,500 call strike, which will likely act as the first major ceiling for any intraday bounce. Above this, the 56,800 and 57,000 call strikes have a substantial build-up of open interest. Analysts suggest a “sell on rise” approach, and these strikes represent key areas where call sellers are likely to be aggressive.
- Support Levels (Put Side): Immediate support from an options perspective can be found at the 56,200 and 56,000 put strikes. A high concentration of put open interest at the 56,000 strike makes it a critical level to watch. If the index fails to hold this support, the next significant level where put writers may attempt to stall the decline is 55,800 followed by 55,500.
- Trading Range: The likely trading band for BANKNIFTY today is between 56,000 and 56,800.
Strategic Outlook
Given the current market structure, option selling strategies, such as writing out-of-the-money (OTM) calls at resistance levels (e.g., NIFTY 25,200 CE, BANKNIFTY 56,800 CE) or writing OTM puts at strong support levels (e.g., NIFTY 24,800 PE), may be favored by experienced traders. Option buyers should remain cautious and wait for a decisive breakout from the established range before initiating directional bets.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Trading and investing in the stock market involve a risk of financial loss.
