More Stories

Informist, Friday, Jul. 25, 2025

By Akash Mandal

MUMBAI – Options data shows it will be tough for the Nifty 50 to rise above the psychologically important 25000 level again at least in the near term. Traders added short bets after the Nifty 50 fell sharply Friday on weak June quarter earnings so far, delay in US-India trade deal, and selling by foreign investors.

On the call side, traders added short positions at out-of-the-money call options of 24900-25100 strike prices, implying that these levels will act as an immediate resistance for the 50-stock index. The 25000-strike price call option now has the highest open interest, indicating a strong resistance at this level, which was seen as a support for the index just a few days back.

On the put side, traders bought out-of-the-money options across the board with the highest open interest addition at 24600-24700 strike prices. "Options data indicates sell on rise trading approach...sustenance below 24800 might take it towards 24600 and lower levels in immediate near term," said Vipin Kumar, assistant vice-president and senior derivatives analyst at Globe Capital Market. 

When asked how likely is a fall below the 24600 levels, Kumar said, "...there is a higher probability of 24450." He sees the Nifty 50 facing resistance at 25000-25100 levels, with the support pegged at 24800-24600 points.

On Friday, the Nifty 50 closed over 225 points lower at 24837 points. Analysts cited lukewarm June quarter earnings, heavy selling by foreign investors over the past couple of weeks, and frothy valuations as key reasons weighing on the market. "While aggregate earnings were broadly in line with estimates, the muted outlook provided by a number of companies across sectors dented the market mood," Shrikant Chouhan, head equity research at Kotak Securities, said in a note.

Investors are also jittery due to uncertainty regarding a trade agreement between India and the US as the Aug. 1 deadline approaches. A favourable trade agreement with the US may be the next big positive trigger for the market, some analysts said. However, some others said a trade deal has already been priced in. 

--Nifty 50 Jul closed at 24846.80, down 248.60 points; 9.80-point premium to the spot index

--Nifty 50 Aug closed at 24938.90, down 256.10 points; 101.90-point premium to the spot index

--Nifty 50 Sep closed at 25096.20, down 250.90 points; 259.20-point premium to the spot index

Bajaj Finance, Axis Bank, HDFC Bank, Reliance Industries, Infosys, Shriram Finance, Bajaj Finserv, REC, ICICI Bank, State Bank of India, Cipla, JSW Steel, Laurus Labs, Eternal, and Vedanta were the most active underlying stocks Friday.  End

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.