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Informist, Tuesday, Jul. 22, 2025

By Akash Mandal

MUMBAI – Options data show sentiment in the market remains weak. Analysts are also uncertain of the Nifty 50's direction this week. This uncertainty is due to the soft June quarter earnings and an overhang from the delay in the conclusion of a trade deal between India and the US, analysts said.

Traders added short bets at out-of-the-money call options between 25100-26000 strike prices with the maximum addition of open interest at 25100-25200 strike prices. This implies that traders see limited near-term upside for the 50-stock index.

They also added short bets at in-the-money and at-the-money call options between 24200 and 25000 strike prices. Analysts say the Nifty 50 might fall further if it breaches the crucial support of 25000 points. However, a significant fall is unlikely, as suggested by the addition of long positions at out-of-the-money put options.

"It is likely (that there may be) muted action this expiry as positioning on 25000, 25100, and 25200 strikes indicate (a) neutral stance," said Ajit Mishra, senior vice-president of technical research at Religare Broking. "...they (traders) have formed short iron butterfly strategy, by shorting 25100 call and put options both and buying out-of-the-money call and put options both," he said.

On Tuesday, the Nifty 50 ended at 25060.90 points, down 29.80 points. The 50-stock index, which was up over 90 points at its intraday high, gave up all its gains and settled lower, with analysts attributing the fall to selling for profit at higher levels. Analysts see the index moving in a range of 25000-25250 points in the upcoming sessions.

Traders bought out-of-the-money put options between 25250-26300 strike prices, again implying the market is likely to face resistance at higher levels. However, they also sold put options at at-the-money and in-the-money strike prices between 24150-25050 with the highest addition of open interest at 25050 puts, followed by 24700 puts. It suggests the Nifty 50 is likely to find support at current levels, but if it falls further, a bigger decline is likely.

"Indices are just continuing their prevailing trend... options data is still on the negative side. Yesterday's (Monday's upward) move was more of a reaction due to earnings," said Vipin Kumar, assistant vice-president and senior derivatives analyst at Globe Capital Market.

--Nifty 50 Jul closed at 25095.00, down 32.60 points; 34.10-point premium to the spot index

--Nifty 50 Aug closed at 25191.10, down 35.60 points; 130.20-point premium to the spot index

--Nifty 50 Sep closed at 25341.70, down 37.20 points; 318.00-point premium to the spot index

Eternal, Reliance Industries, HDFC Bank, ICICI Bank, Havells India, One 97 Communications, State Bank of India, Infosys, Bajaj Finance, Canara Bank, UltraTech Cement, Mahindra & Mahindra, Angel One, Dixon Technologies (India), and UPL were the most active underlying stocks Tuesday.  End

Edited by Nishant Maher

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