Nippon Life India Asset Management 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 NAM-INDIA, that strike is ₹940. Spot at ₹922.5 is 1.9% below max pain — possible upward gravitational pull into expiry.
Max Pain Level
The current max‑pain strike for NAM‑INDIA sits at ₹940. At this level option writers would incur the smallest aggregate loss if all outstanding options expired worthless, creating a magnet that often draws price action as expiry approaches.
Spot vs Max Pain Gap
The spot price of ₹922.5 is about 1.86 % below the max‑pain strike, indicating a modest bearish gap. If the underlying continues to drift toward the ₹940 level, the gap will narrow, suggesting a potential pull‑back from current lows.
Shift Signal
The max‑pain figure has moved down by 100 points from yesterday, a clear downward shift. This downward adjustment hints that option writers are re‑balancing their short positions toward lower strikes, possibly anticipating a softer rally or a sideways range.
Expiry Context
Max‑pain is derived from the aggregate open‑interest of calls and puts; as expiry nears, market makers often hedge to protect against large payouts, which can reinforce price movement toward the pain point. During the final week before expiry, price tends to oscillate around the pain level, but the phenomenon remains a statistical tendency, not a deterministic outcome.
Data Note
The spot is currently ₹17.5 below the max‑pain strike, with 26 days remaining until the 23 November 2026 expiry.
Data as of 2026-10-28