Equity Futures
Options show Nifty 50 likely to move in thin range near term
This story was originally published at 19:30 IST on 6 August 2025
Register to read our real-time news.Informist, Wednesday, Aug. 6, 2025
By Akash Mandal
MUMBAI – Options data show the Nifty 50 is likely to move in a thin range ahead of the weekly expiry Thursday. While analysts do not expect a sharp fall in the near term, sentiment could turn negative if the tariff-related threats from the US materialise.
US President Donald Trump has threatened tariffs as high as 250% on pharmaceutical imports into the country, saying he could impose these tariffs as early as next week. Following this, pharmaceutical stocks in India, Europe, and Asia slumped Wednesday. Tuesday, Trump also threatened to increase tariffs on India within a day.
There was unwinding of long positions across in-the-money put and call options. The Nifty 50 closed Wednesday's session 0.3% lower at 24574.20 points after the Reserve Bank of India's decision to keep the repo rate unchanged and raise inflation estimates created doubts about future rate cuts. Some analysts said the RBI's expectation of headline inflation crossing 4% in the June quarter next year affected market sentiment. The central bank expects headline inflation to rise to 4.9% on year by the June quarter next year. A rise in inflation will limit room for the central bank to cut rates further, analysts said.
On the call side, maximum addition of open interest was at out-of-the-money strike prices between 24600 and 25000 points. These levels also had the highest open interest, which indicates the 50-stock index is likely to face selling pressure at higher levels.
On the put side, the highest open interest for contracts expiring Thursday was at the 24000 strike price. The 24300-24600 contracts also had significant open interest. This implies the 50-stock index may fall as low as 24000 points if it slips below 24500 points. Some traders sold deep out-of-the-money put options below the 24000 strike price, implying that a fall below that level is unlikely.
--Nifty 50 Aug closed at 24628.00, down 79.80 points; 53.80-point premium to the spot index
--Nifty 50 Sept closed at 24762.00, down 84.10 points; 187.80-point premium to the spot index
--Nifty 50 Oct closed at 24880.00, down 79.70 points; 305.80-point premium to the spot index
BSE, ICICI Bank, State Bank of India, Infosys, HDFC Bank, Trent, Bharti Airtel, Reliance Industries, Divi's Laboratories, Bharat Electronics, One 97 Communications, Power Finance Corp., Bosch, Kotak Mahindra Bank, and IndusInd Bank were the most active underlying stocks Wednesday. End
Edited by Rajeev Pai
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