Opening Zone: Nifty Turns Bearish, Gaps Down
On 22nd September 2025, Nifty opened with a sharp gap down, losing 88.95 points at 25,238.10. It made an intraday high of 25,331.70 and a low of 25,151.05, finally closing at 25,202.35—down 124.70 points for the day (-0.49%). Volatility surged, with VIX rising by 5.92%, reflecting increased market nervousness as traders braced for further downside ahead of expiry.
Early Movement: Bounce Fails, Bears Reclaim Control
After the gap down, the initial selling was absorbed by buyers, reflected in the first 15 minutes as the cumulative delta/cumulative volume was only 1.56%. Nifty rallied quickly to the 25,331 area (bearish FVG and VPOC zone) but was rejected from this resistance. The market then moved sideways, as buyers prevented a deeper drop, but from 1 PM, aggressive selling resumed. By 2:15 PM, Nifty had fallen another 100 points and, despite a late recovery attempt, still closed significantly lower. This sell-off indicates that buyers were unable to regain control, confirming persistent bearish momentum.
Key Technical & Option Levels
- Value Area High: 24,324
- Value Area Low: 24,235
- POC: 25,300
- Resistance: 25,330
- Support: 25,150
- open interest
Open interest data show significant call writing at 25,300 and put writing at 25,200. With a Put Call Ratio (PCR) of 0.6, sentiment is clearly bearish. Call writers dominate resistance levels while puts provide fragile support—setting the stage for potential expiry volatility.
Sectoral Performance: Gainers & Losers
On a weak day, cement stocks were the standout gainers, indicating selective rotation into defensives. Conversely, pharma stocks underperformed and dragged the broader market lower, accentuating sectoral divergence amid the overall bearish sentiment.
Macro Headlines Impacting Market Mood
- The Indian rupee was weighed down by a sharp hike in U.S. visa fees, adding pressure and uncertainty to the currency market.
- Gold surged to fresh record highs, as investors sought safety ahead of anticipated global rate cuts, further reflecting risk-off mood.
- Ongoing trade talk expectations and global political developments (e.g., US-China dynamics) amplified market caution, contributing to today’s sell-off.
My Trade: Profitable Exit Before Expiry
I carried forward select positional trades from last week, and as Nifty shifted down in today’s bearish session, I squared off those positions for a decent profit. With expiry tomorrow, I am staying on the sidelines for now and will look to establish fresh positions in the expiry session depending on market developments. This prudent approach helps manage risk ahead of highly volatile events and lets me capitalize on directional moves without overnight exposure.
Why Was Nifty Down Today?
The Nifty’s decline today was triggered by a confluence of factors:
- Global risk aversion and uncertainty (including rupee pressure and sharp moves in gold) led investors to sell equity and rotate into safer assets.
- Sharp intraday rejection at resistance levels underscored technical weakness and encouraged fresh selling by institutional traders.
- Weakness in key sectors, particularly pharma, weighed on index performance and offset selective gains in cement stocks.
- With expiry looming, traders took profits and hedged positions, further amplifying pressure.
With VIX up nearly 6%, volatility is expected to remain high into expiry, and traders should remain cautious, watching for key support and resistance breaks.
Disclaimer
This blog is strictly for educational purposes. I am not a SEBI registered advisor. Security markets are inherently risky—please consult a financial advisor before any investment. No trading platform or product endorsement is implied, and any P&L shown is purely to highlight options trading as a risk management tool. All opinions are for learning and discussion, not recommendations.
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