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Informist, Tuesday, Aug. 5, 2025

By Akash Mandal

MUMBAI – Options data showed the Nifty 50 is likely to consolidate in the next few sessions as the June quarter earnings draw to a close, with most of the large-cap companies that are yet to report their results unlikely to significantly impact the benchmark indices. Traders added short bets at the 24700 call strike price during the session, with the contract also having the second-highest open interest. On the put side, the 24500-24600 strike prices saw the most open interest additions during the session. These contracts are also among the put contracts currently with the highest open interest. This implies that the 50-stock index is likely to move in a range of 24500-24700 in the next few sessions.

Analysts said any unexpected announcements from the Reserve Bank of India's Monetary Policy Committee meeting outcome on Wednesday could be the next trigger for the market. Most analysts expect the central bank to maintain a status quo on the repo rate after the surprise 50 basis-point cut in the last policy. A surprise rate cut in the upcoming meeting could yet again boost sentiment, while any negative announcements could push the equity market back further.

On the put side, traders sold out-of-the-money contracts at 24000-24600 strike prices, implying that the Nifty 50 is unlikely to witness a sharp fall in the near term. Traders also unwound their long positions across in-the-money contracts in 24700-25650 range. On Tuesday, the 50-stock index ended 73 points lower at 24649.55 points. 

On the call side, traders added short bets across the board. The 24700 contract has the second highest open interest among call contracts, with nearly half of it being added Tuesday, implying that the Nifty 50 is likely to face immediate resistance at that level. The highest open interest was at the 25000 contract, signifying that the 50-stock index could face strong resistance around that level. Traders also closed their positions on some deep in-the-money and out-of-the-money options ahead of the weekly expiry on Thursday.

All eyes will now be on RBI Governor Sanjay Malhotra's address at 1000 IST Wednesday, with most analysts expecting the committee to leave the repo rate unchanged at 5.50%. However, analysts with a contrarian view expect a 25-bps cut amid lower-than-expected inflation levels, slowing earnings growth, and tepid guidance by companies for the rest of the year. 

"The consensus view of 'no rate cut' in August appears to emanate more from the June policy guidance rather than the present macro realities...however, we believe there are enough reasons for the RBI to deviate from its previous guidance, deliver a further 25 bps easing in August, and be more open-ended in its policy approach/guidance for further easing ahead," Emkay Global Financial Services said in a report Tuesday.

--Nifty 50 Aug closed at 24716.00, down 77.10 points; 66.45-point premium to the spot index

--Nifty 50 Sept closed at 24854.50, down 74.10 points; 204.95-point premium to the spot index

--Nifty 50 Oct closed at 24968.00, down 73.80 points; 318.45-point premium to the spot index

HDFC Bank, BSE, IndusInd Bank, One97 Communications, ICICI Bank, Infosys, Reliance Industries, State Bank of India, Adani Ports and Special Economic Zone, Multi Commodity Exchange, Bosch, Bharat Electronics, Aditya Birla Capital, Axis Bank, and Bharti Airtel were the most active underlying stocks Tuesday.  End

Edited by Tanima Banerjee

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