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Informist, Wednesday, Jul. 23, 2025

By Akash Mandal

MUMBAI – Traders covered their short positions Wednesday as the Nifty 50 found buying interest at support levels. Options data suggest that the Nifty 50 may rise further this week if it manages to cross 25250 points.

"Data shows the Nifty 50 may try to climb higher in the next few sessions... however, hopes of a recovery would end if the market reaction to earnings, especially for Infosys, is poor," said Ajit Mishra, senior vice-president of technical research at Religare Broking. Infosys reported its quarterly earnings post-market hours Wednesday and its net profit and revenue during the quarter came in higher than expectations.

Options data showed sentiment improved Wednesday as the Nifty 50 rose 0.6% to close at 25219.90 points. Traders covered their short positions in-the-money call options across the 24000-25150 strike prices. Some short covering was also seen at out-of-the-money call options between 25300-25450 strike prices. Mishra said bullish sentiment was also visible on the put side, where long bets were added at 25100-25200 strike prices.

On the call side, traders sold contracts at the 25600 strike price, alongside deep in-the-money strike prices between 26600 and 27000, implying that the near-term upside for the 50-stock index remains capped. "The index has to sustain above 25250, which is a technical resistance, to see significant upside," Mishra said. The long-short ratio of foreign investors was at 14.4% at the end of the session, Mishra said. 

Traders also sold puts across most of the strike prices during the session. The highest open interest was at 25000-25200 puts, implying that chances of a sharp fall seem unlikely.

--Nifty 50 Jul closed at 25254.00, up 160.10 points; 34.10-point premium to the spot index

--Nifty 50 Aug closed at 25358.70, up 159.70 points; 138.80-point premium to the spot index

--Nifty 50 Sep closed at 25498.80, up 150.30 points; 278.90-point premium to the spot index

One 97 Communications, Infosys, Dixon Technologies (India), State Bank of India, HDFC Bank, ICICI Bank, Tata Motors, Reliance Industries, Bajaj Finance, Canara Bank, Eternal, SRF, REC, Mahindra & Mahindra, and Bharti Airtel were the most active underlying stocks Wednesday.  End

Edited by Saji George Titus

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