Nifty Options Trade Setup for October 23, 2025

Disclaimer: The following information is compiled from recent market analyses and is for educational purposes only. Trading in options involves high risk and potential for loss. This is not financial advice—consult a certified advisor before making any trades. Past performance does not guarantee future results.

Market Snapshot

• Nifty 50 Close (Oct 22, 2025): 25,869 (up ~0.52% on broad-based rally)
• Bank Nifty Close: 58,007 (up ~0.55%)
• Overall Bias: Bullish with mild consolidation. RSI near overbought (72+), but PCR at 1.08 signals bullish sentiment. India VIX at 11.30 indicates low volatility.

Key Support and Resistance Levels

Use these for intraday positioning. Break above resistances could signal "sureshot" upside momentum; dips to supports are ideal entry points for calls.

• Nifty Targets: Upside to 26,000–26,300 if 26,000 breaks decisively (near Sept 2024 highs).
• Bank Nifty Targets: Upside to 58,735+ if 58,285 holds.

Option Chain Highlights (Weekly/Monthly Expiry Focus)

• Nifty Call OI Buildup: Heavy at 26,000 (1.09 Cr contracts) and 25,900—watch for unwinding above these for bullish confirmation.
• Nifty Put OI Buildup: Strong at 25,800 and 25,700—potential support if defended.
• Bank Nifty Call OI: Peaks at 58,000; Put OI at 57,800.
• Key Writing Activity: Calls written at 26,000/25,900 (Nifty); Puts at 25,500 (Nifty). This suggests resistance at higher strikes but room for upside if breached.

Recommended Strategies ("Sureshot" Approaches Based on Consensus)

Analyses point to buy-on-dips as the low-risk, high-probability play, given the upward structure and positive global cues. Avoid fresh shorts unless supports break with volume.

1. Nifty CE (Call) Strategy – Bullish Bias:
   • Entry: Buy 25,900–26,000 CE on dips to 25,800 (e.g., if premium ~50–80).
   • Targets: 100–150 points (trail profits above 25,985).
   • Stop Loss: 25,750 or 20–30% premium decay.
   • Rationale: Sustained above 25,900 could trigger 26,000 breakout; 90%+ OI alignment supports this as a "sureshot" if volume confirms.
2. Nifty PE (Put) Hedge – For Protection:
   • Entry: Buy 25,700–25,800 PE only on breakdown below 25,768 (premium ~40–60).
   • Targets: 80–120 points.
   • Stop Loss: Above 25,900.
   • Rationale: Minimal unwinding in Puts suggests downside limited unless global risks spike.
3. Bank Nifty CE Strategy:
   • Entry: Buy 58,000–58,500 CE near 57,800 support.
   • Targets: 150–200 points toward 58,735.
   • Stop Loss: 57,500.
   • Rationale: Broad banking rally (e.g., AU Bank, IDFC First up) favors longs; trail stops to lock gains.

Broader Outlook

• Bullish Drivers: Higher highs/lows intact, northward EMAs, strengthening MACD. Focus on volume above resistances for conviction.
• Risks: Overbought RSI could lead to pullback to 25,700 zone. Monitor US futures and Asia opens.
• Positional Tip: For October expiry, consider bull call spreads (buy 25,800 CE, sell 26,200 CE) for defined risk/reward.

For real-time updates, check NSE option chains or trusted platforms. Trade responsibly!