Nifty 50 experienced high volatility on December 23, 2025, during weekly expiry, opening with a modest gap-up but closing nearly flat at 26,177.15 after filling the opening gap and testing key supports. This choppy session reflected expiry-driven swings, gamma expansion post-2 PM, and profit booking, keeping the index in a consolidation zone near yesterday’s pivot

MY TRADE .

Market opened with a gap up then start moving down , so I immediately entered a sell multi-leg position. As Nifty kept falling, call sells turned profitable—I booked them and re-entered fresh call sells.

When the market reversed, I added put sells. I repeated this process—debooking winners and layering opposing legs—to stay balanced.

At the end, I added hedges to protect against gap up or gap down risks.

Key Takeaways

• Book call/put profits early to fund fresh entries.
• Layer sells dynamically for delta neutrality.
• Final hedges secure the position into expiry.

Educational only. Not trading advice.

Opening and Price Action

Nifty gapped up by 32.80 points to open at 26,205.20, quickly hitting a high of 26,233.55 while respecting the opening low at 26,205.20. Positive sentiment faded rapidly with a 50+ point drop from 26,200 toward 26,100, where yesterday’s pivot provided crucial support for recovery into consolidation. After 2 PM gamma expansion triggered a sudden call premium spike and upside shoot, the market reversed again, closing below 26,200 up just 4.75 points or 0.02% – overall sideways yet highly volatile in the final hour.

Why Such High Volatility Today?

Expiry day amplified swings due to heavy options positioning, with maximum call open interest at 26,200 and put OI at 26,150 creating magnetic resistance and support levels. Post-2 PM gamma expansion from call unwinds fueled the brief spike, but FII selling, IT sector profit-taking, and year-end dollar liquidity pressures via rupee forwards added uncertainty. RBI intervention calls amid NDF spikes and low inflation signals further weighed on sentiment, capping upside amid importer dollar demand.

Key Market Observations

Market opened gap-up with positive sentiment but shocked traders with a rapid 50-point fall, recovering only to consolidate as expiry dynamics dominated. It filled the opening gap and reached yesterday’s range center, signaling higher chances of downside or sideways moves unless major positive news emerges – upside remains rare without catalysts. Broader participation stayed muted, with volatility index ticking up on FII short-covering expectations.

Critical Support and Resistance Levels

26000 acts as major support, while 26200 functions as key resistance per OI buildup and pivot alignment. A sustained break below 26,000 could accelerate selling, but holding above offers dip-buying chances toward 26,250 only on strong cues.

Sectoral Performance Highlights

• Metal sector led gains, buoyed by global commodity strength and prior momentum.
• Banking lagged as losers, pressured by rupee volatility and FII outflows.

Open Interest Insights

26200 holds highest call OI, reinforcing resistance, while 26000 shows peak put OI for downside protection – shifts here will dictate post-expiry direction.

Major Global and Domestic News Impact

• Bankers urge RBI action amid dollar glut and NDF pressure roiling rupee forwards, spiking one-month premiums to six-year highs.
• Rupee ended flat, squeezed by importer dollar demand and firmer Asia FX.
• India-Mexico trade hits new heights, offering long-term positivity.
• RBI’s Kumar warns India’s low inflation may signal demand stress.

Note: I am not SEBI registered; this blog is for educational purposes only. Security markets are risky – consult your financial advisor before investing. Not associated with any trading platform; images and P&L shown are personal, not endorsements or promotions. No courses sold – sharing thoughts for learning; I may be wrong