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Informist, Monday, Jul. 6, 2026

 

By Eshitva Prakash

 

MUMBAI – Call and put options of the Nifty 50 indicate that traders expect limited rise in the headline index on Tuesday. Traders bought call contracts with strike prices near spot levels and sold put contracts across strike prices. However, they also sold deep out-of-the-money call contracts. Additionally, large open interest in multiple contracts of at-the-money call options indicate that the Nifty 50 is likely to face resistance at higher levels Tuesday.

 

Traders await the upcoming June quarter earnings of companies to gauge the financial implications of the war in West Asia. Tata Consultancy Services will kick off what is expected to be a weak June quarter earnings season for information technology majors on Thursday. On Monday, the Nifty 50 index ended 0.7% higher from Friday at 24430.35 points. Analysts now see the 50-stock index facing resistance at 24550–24600 points. Support for the index is pegged at 24300–24250 points.

 

"The market is expected to rise gradually in the next few sessions as it is quite close to being in the overbought zone, Vipin Kumaar, assistant vice president of research at Globe Capital Markets, said. "The put call ratio (on Monday) turned positive at 1.44, and we may see minor profit booking at higher levels," he said.

 

Traders sold put contracts across strikes of 24300-24400. Considering that there are no immediate negative triggers for the market, the analyst sees no reason for volatility Tuesday, other than limited jitters as weekly derivative contracts of the Nifty 50 expire. "I think buying a bull call spread in futures and options will be a good idea," Kumaar said, adding that he maintains a buy-on-dips approach in the cash market. 

 

Traders bought call options expiring Tuesday near the spot level, which indicates hope of a rise in the market. The maximum open interest addition was at the 24450 strike price, with the premium rising almost 57%. At the same time, traders also sold call contracts above 24650 strike prices, suggesting limited gains in the near term.

 

Traders added bullish bets in the options chain of the Nifty Bank index with positions suggesting the sectoral index could rise nearly 1% in the near term. The highest open interest addition was seen at 59000 strike prices. The Nifty Bank index ended Monday's session at 58291.50 points.

 

Traders covered short positions in in-the-money contracts of the sectoral index. Strong credit growth for some banks during the June quarter pushed investors to buy banking stocks. However, banks' net interest margins are expected to remain flat or marginally lower in the June quarter, Systematix Shares and Stock Brokers said. The continued increase in the share of corporate loans is expected to weigh on yields, but the lagged repricing of the term deposit book should partially offset this pressure, the brokerage said. 

 

--Nifty 50 July closed at 24479.90, up 127.20 points; 49.55-point premium to the spot index

--Nifty 50 August closed at 24571.00, up 125.80 points; 140.65-point premium to the spot index

--Nifty 50 September closed at 24742.90, up 128.60 points; 312.55-point premium to the spot index

 

HDFC Bank, Dixon Technologies, Reliance Industries, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Multi Commodity Exchange of India, IndusInd Bank, BSE, Varun Beverages, Hitachi Energy India were the most actively traded underlying stocks Monday.  End

 

US$1 = INR 95.40

 

Edited by Avishek Dutta

 

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