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Informist, Friday, Jan. 30, 2026

By Simran Rede

MUMBAI – After a resilient performance throughout the week, the Nifty 50 took a breather Friday ahead of the Union Budget for the financial year 2026-27 (Apr-Mar). Traders added short positions across the options chain of the index with analysts expecting volatility and a significant movement on Budget day. The Budget is being presented Sunday.

With traders going short on out-of-the-money call contracts, equities are likely to decline in the next trading session. Additionally, traders added short positions on the put side. However, the lower quantum of premiums on these contracts suggests the Nifty 50 may move in a tight range with any sudden rise being unlikely.

Analysts said if there is any surprise announcement in the Budget, the market may see an upside move. However, this will be short-lived as negative bias persists, they said. "Expectations are balanced between growth support and fiscal prudence," Vinod Nair, head of research at Geojit Investments, said.

"Profit booking intensified in metals and IT (information technology) amid a firmer dollar and global liquidity concerns, with sentiment turning cautious ahead of clarity on the incoming Fed chair," Nair said. Market participants remain wary that a potentially stronger inflation focus could prolong tight financial conditions and weigh on emerging markets, he said.

Overall, the Indian equity market is expected to remain rangebound, underpinned by strong domestic fundamentals but constrained by external uncertainties, including geopolitical risks, global tariff developments, continued foreign investment outflows, and the US Federal Reserve's evolving policy outlook.

US President Donald Trump has nominated Kevin Warsh, a former Fed governor, to serve as the next chair of the board of governors of the US Federal Reserve System, according to Trump's post on his social media platform Truth Social. Incumbent Jerome Powell's term ends in May.

On the options chain, premiums on out-of-the-money call options fell 12-26% on contracts between strike prices 25300 and 26000. The open interest in each of these contracts rose around 2 million. Premiums on put contracts between strike prices 24400 and 25300 rose 28-40% with the open interest rising 1 million-4 million. The 26000 level saw maximum call writing acting as a resistance, whereas the 24900-point level shows support.

--Nifty 50 February closed at 25425.00, down 111.30 points; 104.35-point premium to the spot index

--Nifty 50 March closed at 25593.00, down 114.10 points; 272.35-point premium to the spot index

--Nifty 50 April closed at 25745.00, down 113.20 points; 424.35-point premium to the spot index

Vedanta, Hindustan Zinc, Multi Commodity Exchange of India, ICICI Bank, Dixon Technologies (India), National Aluminium Co., Vodafone Idea, Hindalco Industries, Bharat Electronics, Axis Bank, State Bank of India, Tata Steel, BSE, ITC, HDFC Bank, Infosys, Nestle India, Reliance Industries, Maruti Suzuki, and Canara Bank were the most actively traded underlying stocks Friday.  End

Edited by Rajeev Pai

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