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Informist, Tuesday, Jul. 29, 2025

By Anshul Choudhary

MUMBAI – Traders covered their short positions in call and put options after the Nifty 50 managed to post gains after declining for the previous three sessions. However, options data showed traders are not confident of seeing sharp gains as they sold out-of-the-money call options above 25000 points.

Poor earnings growth in the June quarter, the delay in the trade deal between India and the US, and recent outflows from foreign investors have raised concerns about further profit booking or an extended period of rangebound movement in the market. The highest open interest in the call options, expiring Thursday, was still at 25000 strike prices, making this level a strong resistance for the Nifty 50 in the near term.

While 25000 points is likely to be a resistance, gains in the Nifty 50 Tuesday have raised hopes of a slight pull-back from the recent decline. Tuesday, the Nifty 50 gained 0.6% to close at 24821.10 points. This pushed traders to cover short positions, indicating expectations of further gains at least till the Nifty 50 reaches 25000 points.

Traders covered their short positions on the call side below 25000 strike prices. However, they continued to sell call options above 25000 strike prices.

On the put side, the highest open interest was at 24000 strike prices, followed by 24800 strike prices. Traders also sold put options between 24400 and 24700 strike prices, indicating hopes of support for the market at lower levels.

The July futures contract of the Nifty 50 closed at a premium of 22.30 points to the spot index Tuesday. Open interest in the contract rose 2.6% to 11.50 million, according to provisional data.

--Nifty 50 Jul closed at 24843.40, up 133.20 points; 22.30-point premium to the spot index

--Nifty 50 Aug closed at 24951.60, up 143.60 points; 130.50-point premium to the spot index

--Nifty 50 Sep closed at 25091.00, up 130.60 points; 269.90-point premium to the spot index

HDFC Bank, Reliance Industries, Axis Bank, Infosys, ICICI Bank, State Bank of India, Bharti Airtel, Mahindra & Mahindra, Kotak Mahindra Bank, Bajaj Finance, Tata Consultancy Services, Interglobe Aviation, Eternal, and Asian Paints were the most active underlying stocks Tuesday.  End

Edited by Saji George Titus

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