Chapter 1: Market Opening Zone – Nifty Gaps Down, Bears Surface
On 18th September 2025, the Nifty opened with a moderate gap down at 25,410.20, a decline of 13.40 points versus the previous close. The index moved between a high of 25,428.75 and a low of 25,286.30, finally closing at 25,327.05—down 96.55 points, or 0.38%. Volatility ticked up, with VIX rising by 0.48% as broader market sentiment shifted cautious.
The opening bearish tone reflected weak global momentum and investors bracing for potential negative news in the session.
Chapter 2: Intraday Action – Heavy Selling Dominates
Nifty kicked off with a negative cumulative delta/cumulative volume of -19% in the first 15 minutes, highlighting aggressive selling at the open. By 9:30 AM, bears were active, pushing the market lower. Around midday, selling pressure was absorbed, but the index stayed in the selling zone. Into the close, bears remained in control. The market attempted a recovery, trimming losses but maintained a downtrend as cumulative delta remained negative at closing.
Any new negative news could trigger further selling—traders are advised caution in the upcoming session. Only a move above 25,366.90 (the VPOC resistance) and 25,400 can confirm a shift back to a positive sentiment.
Bonus Technical Levels
- VPOC Key Level: 25,366.90
- Resistance: 25,400
- Put Call Ratio (PCR): 0.80 (shows limited bullish sentiment as calls outweigh puts at upper strikes)
Chapter 3: Open Interest View
The 25,400 strike has elevated call open interest, asserting itself as a resistance zone, while strong put interest at 25,300 provides minor support. The overall Put Call Ratio (PCR) at 0.8 signals a cautious market with call writers in control—consistent with today’s downside move.
Chapter 4: Sectoral Performance
On a volatile day, PSU Banks turned out as top gainers, showing resilience and possible rotational play. Consumer sector stocks lagged, acting as market underperformers and contributing to Nifty’s drag.
Chapter 5: Macro Headlines & Impact
- India’s central bank urged state governments to spread out borrowings across maturities, a move aimed at better liquidity and debt management.
- Globally, the markets watched the Trump-Xi diplomatic showdown, adding uncertainty and keeping traders defensive.
This climate of caution fueled the gap-down and selling pressure through the day.
My Trade Description: Managing Straddle Positions with Hedges
I carried forward a profitable positional short straddle at 25,000 from the previous blog ahead of the weekly expiry. As the market shifted downwards, I entered a fresh straddle to capture volatility and adjust my risk. Post the late-day move after 3 PM, I added hedges to shield the position overnight from possible gap ups or gap downs. This prudent approach using multiple straddles and timely hedges provides stability during turbulent expiry weeks and allows me to trade the volatility, not just the direction.
Why Did Nifty Move Down Today?
Key factors for today’s decline:
- Weak global sentiment on the back of geopolitical tensions (Trump-Xi showdown) led traders to book profits and hedge long positions.
- Rising volatility, as VIX increased, encouraged caution.
- Aggressive early selling from institutional players, confirmed by negative cumulative delta and falling prices.
- Lack of strong buying in heavyweight sectors—consumers lagged, while only PSU banks outperformed, keeping the index suppressed.
- Technical resistance near 25,400 held strong as open interest build-up from call writers prevented a reversal.
The combination of these factors triggered a gap down and a closing in the red, making risk management essential for option traders today.
Disclaimer
This blog is for educational purposes only. Not SEBI registered; consult a financial advisor before investing. I am not associated with any trading platform or product, nor promoting any service. The options market can be used to control risk when managed carefully. All opinions shared here are for learning and discussion, not financial recommendations.
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