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Informist, Thursday, Jul. 10, 2025

By Anshul Choudhary

MUMBAI – Traders added short positions and cut long positions as the Nifty 50 faced selling pressure at higher levels in anticipation that a trade deal between India and the US could be announced anytime. 

Investors likely took out some profits as the Nifty 50 fell by 120 points or 0.5% on Thursday to end at 25355.25 points. While the trade deal is seen as the next big trigger for market, the June quarter earnings season has also begun with earnings of Tata Consultancy Services, which was announced post market hours.

India's top companies are looking at another quarter of poor earnings growth in Apr-Jun. An Informist poll showed the Nifty 50 companies' cumulative net profit in the quarter is expected to rise only 3.2% on year and revenue growth is seen at 2.6%.

High valuations, possibility of poor earnings season, and uncertainty around the trade deal and US tariffs have raised concern that indices may see profit booking. "The RSI (14) on the daily chart has also turned negative, indicating weakening momentum. In the short term, the trend is likely to remain weak, which could lead to further downside," Rupak De, senior technical analyst at LKP Securities, said in a note. RSI refers to Relative Strength Index.

Options data showed traders sold call options across the board, indicating a hit to bullish sentiment. For call options expiring next week, highest open interest addition was seen at 25400-25500 strike prices. These levels are likely to act as immediate resistance, indicating gains of just 0.6% till expiry next week.

On other hand, traders unwound their long positions in in-the-money put contracts. Traders also bought at-the-money put options. However, they continue to sell deep out-of-the-money amid hopes of limited fall in the market.

The highest open interest addition in put options, expiring next week, was seen at 25000-25100 strike prices. Analysts expect the Nifty 50 to find support around 25200 points.

The July futures contract of the Nifty 50 closed at a premium of 58.75 points to the spot index. Open interest in the contract rose 2.9% to 13.84 million, according to provisional data.

--Nifty 50 Jul closed at 25414.00, down 144.80 points;

--Nifty 50 Aug closed at 25527.60, down 139.90 points; 172.35-point premium to the spot index

--Nifty 50 Sep closed at 25684.00, down 135.70 points; 328.75-point premium to the spot index

Tata Consultancy Services, Infosys, Reliance Industries, State Bank of India, Bharti Airtel, HDFC Bank, Glenmark Pharmaceuticals, ICICI Bank, Maruti Suzuki, Power Finance Corp., Bharat Electronics, Axis Bank, and Hindustan Aeronautics were the most active underlying stocks Thursday.  End

Edited by Akul Nishant Akhoury

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