F&O Expiry Trade: Nifty breakout above 25,300 may trigger short-covering

Nifty F&O Expiry Day: A breakout above the 25,300 level could result in swift short-covering and potentially drive the Nifty towards the 25,450 - 25,500 zone, said Dhupesh Dhameja of SAMCO Securities.

The futures & options (F&O) monthly expiry for all stocks and indices traded in the derivatives segment on the National Stock Exchange (NSE) is scheduled today, June 26, 2025.  The NSE Nifty 50 index has gained 1.7 per cent thus far in the June-month derivatives series. In the same period, Nifty Bank has rallied 2 per cent from levels of 55,546 at the end of May expiry to 56,621 on June 25.  Here's what to expect on the F&O expiry day for June. 

Nifty, Nifty Bank Expiry Day Outlook

  As per the Nifty option chain, the Nifty June Put-Call Ratio (PCR) stands at 1.13 - this ratio implies presence of higher open interest (OI) in Put contracts versus Calls. In general, this is considered a positive sign, as presence of higher OI suggests that Put writers, often considered as stronger hands, are showing willingness to support the market in case of a dip.  "Put writers have been aggressively building positions near the current price levels, indicating a firm stance in defending key support zones. Simultaneously, Call writers have shifted their positions slightly higher, reflecting cautious optimism about further upside", said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.  ALSO READ | Market crash unlikely: Limited downside for Sensex from current levels  The Nifty option chain shows that highest OI in Calls stands at 26,000 Strike followed by 25,500 and 25,300 Strike options. On the other hand, higher OI in Nifty Puts stands at 25,200 Strike followed by 25,000 and 25,100 Strikes.  A breakout above the 25,300 level could result in swift short-covering and potentially drive the Nifty towards the 25,450 - 25,500 zones, Dhupesh Dhameja said in the note.  In case of the Nifty Bank, the analysts believe that a breakout above the immediate resistance zone of 56,800 - 57,000 remains vital for validating a fresh bullish phase.  As per the NSE F&O data, Nifty Bank PCR stands at 0.94. Significant OI in Calls is seen at 57,000, 57,500 and 58,000 Strikes; whereas, Nifty Bank Puts show notable OI at 56,000, 56,500 and 55,000 levels.  ALSO READ | Nifty Media eyes BIG breakout: Den, Network18 up 9% today; what lies ahead?  A confirmed breakout above 57,000 could spark short-covering and drive the Nifty Bank towards the 57,700 - 57,800 region in the sessions ahead, the note from SAMCO Securities stated.  Echoing a similar view, Sudeep Shah, Head, Technical Research and Derivatives at SBI Securities in a note said that the zone of 56,800 - 56,900 will act as an immediate hurdle for the Nifty Bank. Any sustainable move above the level of 56,900 will lead to sharp upside rally up to the level of 57,500, followed by 58,200 in the short term.