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Informist, Friday, Jul. 10, 2026

 

By Eshitva Prakash

 

MUMBAI – Traders took long positions in the options chain of the Nifty 50 index and also covered their short positions, buoyed by a limited rise in oil prices despite renewed hostilities in West Asia and improving foreign investment inflows in the domestic equity market. While this is a bullish indication, they sold call options for deep-out-of-money contracts, indicating limited upside for the 50-stock index. Traders also took bullish positions in some information technology companies after IT bellwether Tata Consultancy Services' revenue for the June quarter in constant currency terms matched brokerages' expectations and its management guided for a gradual improvement from the September quarter.        

 

The Nifty 50 index closed at 24206.90 points on Friday, up 244.10 points or over 1% from Thursday. The 50-stock index is over 200 points lower than its closing level on Tuesday, a day after which US President Donald Trump's statements had rattled markets, causing the Nifty 50 to drop more than 2%. The domestic headline index ended marginally lower for the week. At 1630 IST, the September contract of Brent Crude oil traded slightly higher at $76.41 per barrel. 

 

"Put writers have shifted their positions upwards to 24200 from 24000 earlier, which is a good sign for the market in the near term," Rupak De, technical analyst at LKP Securities, said. "Call writers have also shifted their positions downwards, indicating that they are not very confident," the analyst added. The Nifty 50 index is likely to find support at 24000 levels and face resistance at 24500 levels, reflecting highest open interest on call and put sides, respectively. 

 

Traders showed great interest in purchasing call options at the 24500 strike price, pushing the premium on the contract nearly 22% higher to INR 13.70. Open interest in the contract jumped over 4% to 14.23 million. They also increased positions in call contracts across 24250–24300 strike prices. Short bets were covered across 24000-24400 strike prices, the options chain of the Nifty 50 showed. However, premiums on deep-out-of-the-money call contracts across 24700 and 25000 strikes declined 25% and 31%, respectively, as traders unwound their long positions and also sold call options.

 

Traders sold put contracts across the options chain of the Nifty 50. Consequently, premiums on 23000 strike prices declined 52% to just INR 2.45 and for the 24000 strike price, premiums were down 79% at INR 31.90. They also covered their short positions by selling put contracts across 23400-23600 strike prices. 

 

After Tata Consultancy's June quarter results, traders wrote put options for Infosys' options contract at the INR 1000 strike price. They also bought out-of-the-money call options across 1080-1150 levels, indicating that the stock could rise as much as 8% from its current market price of INR 1,068. Traders bought call contracts for out-of-the-money contracts of HCL Technologies and sold in-the-money put contracts. Options data suggests the stock can rise as much as 3% from current levels, considering that the largest open interest build up on the call-side is at INR 1,200.

 

Traders sold both call and put options of in-the-money and out-of-the-money contracts of TCS. The stock is likely to face resistance at INR 2,250 and if it manages to close above INR 2,100, it may rise sharply, De said. Traders also bought call options of Wipro across strike prices of INR 180–200. However, heavy open interest build up at INR 180 on the call side and INR 170 on the put side, indicating the stock will trade in a range in the near term.

 

--Nifty 50 July closed at 24249.90, up 250.60 points; 43-point premium to the spot index

--Nifty 50 August closed at 24340.00, up 249.30 points; 133.10-point premium to the spot index

--Nifty 50 September closed at 24485.00, up 233.20points; 278.10-point premium to the spot index

 

Tata Consultancy Services, Kalyan Jewellers India, Dixon Technologies (India), Indian Bank, Infosys, Reliance Industries, One 97 Communications, HDFC Bank, State Bank of India, and Central Depository Services (India) were the most actively traded underlying stocks Friday.  End

 

Edited by Avishek Dutta

 

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