Derivative Market Recap: A Volatile Day for Nifty

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Published 22 May 2026

After a negative opening, Nifty witnessed a volatile session with sharp swings between 24,700–25,065 and finally settled with a loss of 0.70%. The Nifty Midcap 100 outperformed, ending with a modest gain of 0.15%.


Nifty 50	Loss of 0.70%
Nifty Midcap 100	Gain of 0.15%

Sector Performance


PSU Bank	FMCG
Realty	IT

Options Market Insights


Significant Call side OI	25,000 Call
Significant Put side OI	24,500 Put
Put-Call Ratio (PCR)	0.749
Max Pain	24,850
VWAP Range	24,620 – 25,035
Sentiment	Higher Call writing vs. Put unwinding → Cautious Undertone

Institutional Activity


FIIs	₹348.45 crore
DIIs	₹10,104.66 crore

Index Futures – Net Contracts


BANKNIFTY	-1,735
FINNIFTY	-8
MIDCPNIFTY	-51
NIFTY	-14,295
NIFTYNXT50	-18

Technical Overview

Benchmark indices witnessed a volatile trading session. Nifty closed 175 points lower while Sensex was down 625 points. Among sectors, the defence index outperformed and gained over 1%, while select auto, banking and IT stocks witnessed intraday profit booking.

After the initial decline, the market bounced back sharply, but again we saw a hefty profit booking at higher levels. Currently, the market is witnessing non-directional activity; perhaps traders are waiting for a breakout from either side.

Key Technical Levels


Nifty	24,700 / 81,100	25,000–25,150 / 82,200–82,700
Nifty (upside)	Retest of 24,600 or 24,450 / 80,900–80,500	25,300–25,500 / 83,200–83,800
Bank Nifty	55,000	56,100

As long as the market trades within this range, a range-bound pattern is likely to persist. On the upside, a successful breach of 25,150 / 82,700 could take the market to 25,300 – 25,500 / 83,200 – 83,800. On the downside, a fall below 24,700 / 81,100 could lead to a retest of 24,600 or 24,450 / 80,900 – 80,500 levels.

Watchlist for Today

Today, keep a close eye on 24,600 levels (20-day SMA) as a bullish reversal from here could lead to a retest of 24,950-25,000 levels. A close below 24,600 would be negative. India VIX is still at 19 levels, which will keep the market volatile.

Final Thoughts

The market remains in a wait-and-watch mode, with traders keeping a close eye on the key support and resistance levels. Stay cautious, and let’s see if a breakout emerges in the coming sessions!

The content in this blog is intended purely for educational purposes. Any securities or mutual funds referenced are illustrative in nature and do not constitute a recommendation or endorsement by Kotak Neo. Investors are encouraged to assess their own financial situation and seek professional advice before making any investment decisions. For compliance T&C and disclaimers, Visit https://www.kotakneo.com/disclaimer/

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