Chapter 1: Market Opening Zone – Strong Gap Up Momentum
On 18th September 2025, the Nifty opened with a significant gap up at 25,441.05, up by 110.80 points from the previous close. The index touched an intraday high of 25,448.95 and a low of 25,329.75, ultimately closing positively at 25,423.60. Overall, the market gained 93.35 points or 0.37% today, while the volatility index (VIX) dropped by 3.51%, reflecting reduced market fear and improved optimism.
This strong gap up opening set a bullish tone for the day, supported by positive global cues and expectations of monetary easing.
Chapter 2: Early Market Movement and Buyer Strength
Despite heavy selling pressure observed in the first 15 minutes, the cumulative delta to cumulative volume ratio was 27%, indicating that buyers retained control. The market showed resilience by failing to close below the Point of Control (POC) candle, highlighting strong demand near 25,400. Additionally, the Market For Cr ratio for buying was at 17, reinforcing this buying momentum.
The index pulled back close to 25,350 but reversed sharply around 3 PM, gaining 90 points as buyers aggressively entered, helping Nifty defend the 25,400 level. If the market sustains and closes above 25,500, it will confirm a positive market sentiment with the potential to rally further.
Bonus Market Levels
- POC: 25,400
- Support: 25,300
- Resistance: 25,500
Chapter 3: Open Interest Profile – Key Strikes to Watch
Open interest data shows high call open interest at 25,500 strike and high put open interest at 25,400 strike price. This confluence suggests a strong battle zone between these levels, with the potential for a breakout if the resistance at 25,500 is convincingly breached.
Chapter 4: Sectoral Performance Snapshot
Pharma and Banking sectors ended as top gainers, reflecting sectoral strength, while PSU Banks lagged, acting as market drags. This sectoral divergence shows where buying interest concentrated, supporting the overall positive bias in the market.
Chapter 5: Global & Currency Updates Impacting Market
Investors remain buoyed by hopes of the U.S. potentially scrapping penal tariffs on India and cutting reciprocal tariffs, as stated by India’s chief economic adviser. Such positive diplomatic moves add to the bullish sentiment.
Meanwhile, the Indian Rupee weakened slightly, ending down 0.36% at 88.1275 against the U.S. Dollar, which may have limited impact but remains a factor for FIIs and exporters.
My Trade Description: Managing Risk in a Volatile Week
I had a short straddle position at the 25,000 strike for this weekly expiry. As the market moved up strongly, I entered an additional straddle at the higher strike to adjust my position. Post 3 PM rally, I added hedges to cover overnight risk associated with a gap up or gap down in the market. This approach allows me to manage risk effectively in a week where strong market moves are expected, maintaining flexibility without being exposed to unlimited losses. The multiple straddles and timely hedges help me navigate the volatility during the crucial weekly expiry.
Why Did Nifty Move Up Today?
Multiple factors contributed to today’s positive momentum:
- The gap up and bullish market action were driven by renewed optimism in India-US trade negotiations, lifting investor confidence.
- The U.S. Federal Reserve’s 25 basis points rate cut reduced global financial uncertainty, encouraging buying in India’s equity markets.
- Broad-based buying in strong sectors like Pharma and Banking further supported the rally.
- Technical factors like the market’s ability to hold key support levels and favorable open interest positioning created a conducive environment for upside moves.
Together, these factors helped Nifty extend its winning streak, with traders eyeing a breakout above 25,500 to confirm a stronger bullish trend.
Disclaimer
This blog is for educational purposes only. I am not SEBI registered and not associated with any trading platform or product. Markets carry risks; please consult a financial advisor before investing. The options market is a tool for risk management and not inherently risky if used wisely. I share my trade and market views purely to provide learning insight; they are not recommendations.
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