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Informist, Wednesday, May 14, 2025

By Anjana Therese Antony

MUMBAI – The options chain of the Nifty 50 hints at further upside for the index in the near term, though the quantum of its rise would be slower in the absence of major triggers. Analysts said the worst is behind and investors will look for further clarity on the trade and tariff decisions between the US and China. Premiums across put and call options expiring Thursday declined, indicating the index is likely to move in a small range.

The Indian stock market has been recovering from the impact of US tariffs and the recent military action between India and Pakistan. Some analysts said investor bias towards the domestic market remains bullish, though there could be periodic corrections. The easing of investor nervousness is evident from the 5.4% fall in fear gauge India VIX to 17.2250 on Wednesday.

Support for the Nifty 50 is seen at 24400-24300 points and resistance at 24800-25000 points, according to two technical and derivatives analysts. On Wednesday, the Nifty 50 closed 0.4% higher at 24666.90 points and the Sensex closed 0.2% higher at 81330.56 points.

Premiums on 24700-25000 call options expiring Thursday fell 25-62% and those on 24500-24300 puts declined 70-80%. The highest addition of open interest was at 25500-point call and 24000-point put contracts. In contracts expiring next week, the maximum open interest addition was at 26000-point call and 24000-point put strikes.

"While foreign fund flows in the domestic market will be critical going ahead, investors are worried that US-China settling tariff disputes could revive foreign investors' interest in Chinese markets again," Prashanth Tapse, senior vice president of research at Mehta Equities, said in a post-market note. 

--Nifty 50 May closed at 24728.00, up 87.80 points; 61.10-point premium to the spot index

--Nifty 50 Jun closed at 24842.80, up 85.70 points; 175.91-point premium to the spot index

--Nifty 50 Jul closed at 24981.00, up 81.40 points; 314.10-point premium to the spot index

Hindustan Aeronautics, Tata Motors, Bharat Electronics, Bharti Airtel, HDFC Bank, Tata Steel, REC, BSE, Hero MotoCorp, Reliance Industries, ICICI Bank, State Bank of India, Infosys, IndusInd Bank, Larsen & Toubro, Asian Paints, Jindal Steel & Power, Hindalco Industries, Canara Bank, Aditya Birla Capital, and Jubilant Foodworks were the most active underlying stocks Wednesday.  End

Edited by Ashish Shirke

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