New Delhi, May 21 -- The Nifty 23,800 level has become a major resistance point for bulls for now, leading market analysts to wonder if bears possess insights others lack despite growing hopes for a West Asian peace deal. While global benchmarks like the Nasdaq and Nikkei surged more than 1% on Wednesday amid this optimism, the Nifty has struggled to follow suit.

This trend is particularly evident in the last two trading sessions through Wednesday, as bears aggressively built positions on 23,800 call options expiring next Tuesday, amid hopes of a last-minute breakthrough in negotiations between the warring sides.

When option writers sell a huge quantity of calls at a specific strike price, they are betting that the market will not rise ...