Polycab 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 POLYCAB, that strike is ₹7,700. Spot at ₹7,680 is near max pain — the expiry magnetic pull is active.
Max Pain Level
The option strike at ₹7700 is identified as the point where option writers experience the smallest aggregate loss at expiry. This “pain” level typically acts as a magnetic zone that draws the underlying price toward it as the contract nears settlement.
Spot vs Max Pain Gap
The current market price of ₹7680 sits about 0.26 % below the ₹7700 threshold, indicating a modest bearish gap. If the underlying continues to drift downward, the gap may widen, whereas a rally toward the strike could compress the distance and increase the likelihood of convergence.
Shift Signal
The shift metric shows a decline of 500 points from the previous day, suggesting that the concentration of open interest is moving toward lower strikes. Writers are thus increasingly positioned to benefit if the price slides further beneath the identified level.
Expiry Context
As expiry approaches on 23 Nov 2026, the cumulative open interest at each strike will be resolved, and the strike with the smallest net writer loss tends to become a focal point for price action. Historically, the final week often exhibits heightened gamma‑driven trading, but the “pain” figure remains a statistical tendency rather than a deterministic outcome.
Data Note
The spot price is currently 20 points away from the identified level, with 26 days remaining until the contract expires.
Data as of 2026-10-28