Cummins India Limited Max Pain Analysis
What is Max Pain?
Max Pain theory states the underlying gravitates toward the strike where option writers face minimum collective loss at expiry. For CUMMINSIND, that strike is ₹5,200. Spot at ₹5,035 is 3.2% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The options market’s “max pain” strike for Cummins India Limited (CUMMINSIND) is ₹5,200. Max pain is the strike at which option writers would incur the smallest combined loss, so the price often gravitates toward that level as expiry approaches.
Spot vs Max Pain Gap
The current spot of ₹5,035 sits about 3.2 % below the max‑pain strike. This downside gap suggests a pull‑back pressure that could ease if the market moves upward toward the ₹5,200 magnet.
Shift Signal
The max‑pain level shows no shift from yesterday, indicating that writers have not adjusted their positioning and are maintaining the same exposure. A flat shift typically reflects a balanced stance between call and put writers, with neither side aggressively moving the price.
Expiry Context
Max pain is derived from the net open interest of all strikes; the strike with the lowest aggregate writer loss tends to act as a “magnet” in the final weeks before expiration. Historically, the week of expiry often sees increased trading volume and price convergence toward the max‑pain level, though this is a tendency rather than a certainty.
Data Note
With 25 days remaining until the September 29 expiry, the spot is roughly ₹165 below the max‑pain strike of ₹5,200.
Data as of 2026-09-04