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Informist, Thursday, Jul. 9, 2026

 

By Eshitva Prakash

 

MUMBAI – Traders aggressively sold out-of-the-money call options, particularly in the final hour of trading, after the Nifty 50 faced selling pressure at higher levels. Heavy open interest build-up around spot prices indicates that the 50-stock index will likely be in range for the near term, analysts said.

 

Traders exited their short positions across strike prices after the Nifty 50 rose following Wednesday's rout. The resumption of the war in West Asia kept the Nifty 50 below Wednesday's lows and traders cautiously sold at-the-money call options and deep out-of-the-money contracts. Thursday, the Nifty 50 closed at 23962.80 points, up 0.3% from Wednesday.

 

Traders have already priced in the risk posed to Indian equities by the war in West Asia, some analysts said. The return of foreign institutional investors in Indian equities in July, at a time when outflows from artificial intelligence-related equities have rattled global markets, is also a welcome change which is boosting confidence in Indian equities, they said. "There was no follow-up selling today (Thursday), and I think that it (Wednesday's fall) was likely a one-off event," Rupak De, senior technical analyst at LKP Securities, said. "Obviously, if (US President Donald) Trump decides to continue bombing and oil prices spike above $80 (per barrel), call positions close to spot levels may get evaporated again." 

 

Traders sold call options across 24050-24100 strike prices around the final hour of trading, reversing course from purchasing these options earlier in the day. Significant selling of call options persisted across 24350–24700 levels, indicating that market participants expect the 50-stock index's upside, if any, to be limited in the near term. Premiums across these strike prices declined 40–60%. Traders also unwound their long positions across 24800-25300 strike prices.

Traders had mixed views on where the Nifty 50's support is placed. Heavy open interest build-up was seen in put contracts at 23500–23900 strike prices. Traders relentlessly sold puts at 23600 strike price, sending the contract's premium spiralling 67% to INR 28.25.

 

--Nifty 50 July closed at 24007.60, up 95.40 points; 44.80-point premium to the spot index

--Nifty 50 August closed at 24103.00, up 95.60 points; 140.20-point premium to the spot index

--Nifty 50 September closed at 24262.00, up 92.00 points; 299.20-point premium to the spot index

 

Kalyan Jewellers India, HDFC Bank, Bharti Airtel, Dr. Reddy's Laboratories, Infosys, Reliance Industries, Dixon Technologies (India), Tata Consultancy Services, Eternal, Bajaj Finance, and ICICI Bank were the most actively traded underlying stocks Wednesday.  End

 

Reported by Eshitva Prakash

Edited by Rajeev Pai

 

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