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Informist, Monday, Jul. 28, 2025

By Akash Mandal

MUMBAI – Options data showed traders added short bets across call options and at out-of-the-money put options, while also cutting their long positions on in-the-money put options. This implies the Nifty 50 is likely to fall further in the near term. Some analysts see the index falling to 24400 levels, before it finds support. Weak earnings by major large-cap players are a cause of concern and affecting sentiment, analysts said.

Traders bought out-of-the-money put options at 24300-24650 strike prices, with the maximum open interest around the 24500-24600 strike prices, implying that these are likely to be strong support zones for the Nifty 50. On the other hand, traders heavily sold the 24000 put option, indicating that the index is unlikely to fall below this level. There were some bullish bets added to deep out-of-the-money put strike prices between 22300-23600, which again implies that the index is not expected to fall below 24000 levels. 

On Monday, the Nifty 50 closed over 156 points lower at 24680.90 points. "Nifty index witnessed breakdown from the upward sloping channel pattern we had seen earlier...today's down move is the ripple effect of the same," Vipin Kumar, assistant vice-president and senior derivatives analyst at Globe Capital Market, said. Kumar sees the 50-stock index taking support at 24400 points and facing resistance at 24800 points. "Call writing at multiple strikes added further pressure on markets," he added.

Traders sold call options across the board, as Kumar pointed out, with the maximum short positions added at out-of-the-money strike prices in 24700-24900 range, implying that the Nifty 50 may face an uphill battle to rise above the 25000 levels in the near term amid a weak market. There was some long unwinding seen at deep in-the-money call strike prices between 22250-24000 and deep out-of-the-money strike prices between 25800-27150.

--Nifty 50 Jul closed at 24706.20, down 144.20 points; 25.30-point premium to the spot index

--Nifty 50 Aug closed at 24811.80, down 130.70 points; 130.90-point premium to the spot index

--Nifty 50 Sep closed at 24961.60, down 141.60 points; 280.70-point premium to the spot index

HDFC Bank, Infosys, ICICI Bank, Reliance Industries, Kotak Mahindra Bank, Bajaj Finance, State Bank of India, Mahindra & Mahindra, Bharti Airtel, Tata Consultancy Services, Larsen & Toubro, Axis Bank, Bharat Electronics, Laurus Labs, and Tata Motors were the most active underlying stocks Monday.  End

Edited by Deepshikha Bhardwaj

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