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Informist, Wednesday, Jul. 16, 2025

By Akash Mandal

MUMBAI – Options data show the Nifty 50 is likely to move in a range as traders await major triggers. Better earnings by index heavyweights and a trade deal between India and the US may provide further triggers, but until then the market's direction is unclear, analysts said.

Call-side data shows the Nifty 50 may face resistance at higher levels with some traders even cutting their long positions in in-the-money contracts. The highest addition of open interest was seen at the 25250 strike price, followed by the 25800 strike price. The 25300-25350 calls also saw significant addition of open interest. These levels are likely to act as resistance for Thursday. The highest open interest on the call side was at 25500 strike prices.

This indicates limited upside for the 50-stock index in the near term amid a lack of triggers and the possibility of weak earnings growth in the June quarter. Wednesday's session reflected indecision with choppy trading and the Nifty 50 moving in a thin range of 135 points. The index ended the session nearly flat at 25212.05 points.

Data on the put side suggest the Nifty 50 is unlikely to see any sharp selling with the highest addition of open interest seen at 25150-25200 points. Open interest at 25150 puts increased by over 4 million contracts to nearly 9 million contracts. 

Premiums on almost all options across both the put and call side of the Nifty 50 fell due to decay as weekly expiry day approaches. The long-to-short ratio of foreign investors rose to 23% from around 18% a day ago, Vipin Kumar, assistant vice-president and senior derivatives analyst at Globe Capital Market, said. While the near-term market direction looks sideways, the long-term prospects remain positive, he said.

Brokerage Prabhudas Lilladher expects the domestic market to stay robust despite the global uncertainty. "Markets seem to have learnt to live with global volatility and adverse geopolitical news flows, given flip-flops in US policies around tariffs and big variations in crude (prices) and global politics," the broking firm said in its strategy report. It raised its 12-month target for the Nifty 50 to 26889 points from 25521 points, with demand likely to improve later in the current financial year.

--Nifty 50 Jul closed at 25236.60, down 29.00 points; 24.55-point premium to the spot index

--Nifty 50 Aug closed at 25348.30, down 19.40 points; 136.25-point premium to the spot index

--Nifty 50 Sep closed at 25507.10, down 22.20 points; 295.05-point premium to the spot index

State Bank of India, HDFC Bank, Infosys, Dixon Technologies (India), Patanjali Foods, Mahindra & Mahindra, Reliance Industries, BSE, Tech Mahindra, Kotak Mahindra Bank, Biocon, ICICI Bank, HDFC Life Insurance Co., Axis Bank, and Wipro were the most active underlying stocks Wednesday.  End

Edited by Rajeev Pai

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