Sellers Dominate as Nifty Posts Three Straight Declines Ahead of Expiry

The Nifty index extended its losing streak for the third consecutive session on Monday, weighed down by persistent profit-booking ahead of the weekly expiry. The benchmark settled 124.70 points lower at 25,202.35, slipping below its prior day’s low and signaling a short-term pause in the ongoing bullish momentum.

Nifty Technical Overview

• Close: 25,202.35 (-0.49%)
  
  
• Pattern: Three consecutive bearish candles, each closing below prior-day lows
  
  
• Support & Resistance:
  
  
  • Immediate support: 25,100–25,150 zone (near 10-day EMA & breakout neckline)
    
    
  • Resistance: 25,350 (shifted lower after repeated failures near the top)
    
    
• Momentum:
  
  
  • RSI steady near 60 — showing that bears dominate but lack full strength.
    
    
  • Trend: Consolidation bias as profit-taking dominates from resistance levels.
    
    

 Key Observation: The index is oscillating near 25,200. A breach below 25,150 could weaken the bullish structure, while reclaiming resistance above 25,350 is critical for upside momentum.

Derivatives Snapshot

• Call Writers in Control: Fresh open interest addition of 2.11 crore contracts at the 25,300 strike, firmly capped upside.
  
  
• Support from Put Writers: Put OI of 1.48 crore contracts at 25,200 reaffirmed this zone as key support.
  
  
• PCR (Put-Call Ratio): Dropped sharply to 0.57 from 0.82, reflecting a bearish tilt, though its oversold state raises the scope of a short-covering rebound.
  
  
• Bias: Range-bound trade likely between 25,150–25,350 until expiry.
  
  

Volatility Check

• India VIX: Jumped 5.92% to 10.55, reflecting heightened uncertainty amid global headlines around H1B visa developments.
  
  
• Despite the rise, VIX still hovers near historic lows  suggesting traders are not aggressively hedging, even as intraday volatility persists.
  
  

Market Outlook

Nifty’s broader uptrend remains intact but has clearly entered a pause phase, with sellers tightening their grip near resistance zones. The three-day losing streak and failure to close above prior-day highs underline near-term caution.

• A decisive close below 25,150 could extend the decline toward the psychological 25,000 mark.
  
  
• On the flip side, only a sustained close above 25,350–25,400 would allow bulls to regain control.
  
  
• Until then, the bias stays sideways to bearish, with profit-booking likely to dominate ahead of expiry.