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Informist, Friday, Aug. 8, 2025

 

By Akash Mandal

 

MUMBAI – Options data showed the Nifty 50 is likely to fall further in the near term on jitters among market participants about the US increasing tariffs on India to 50% and doubts about earnings growth. Market sentiment was hit after the Nifty 50 breached its immediate support level Friday with options showing the index can drop to 24000 points next week, indicating a fall of 1.5%.

 

On the put side, traders added short positions at out-of-the-money contracts, buying at 23100-24300 strike prices. The highest addition of open interest was at the 24000, 23500, and 24300 strike prices. The highest open interest was at the 24000 strike price, implying that most traders expect the Nifty 50 to stay above this level. However, if it falls below this level, the index may see a sharp fall to 23500 points.

 

Friday, the Nifty 50 closed over 200 points lower at 24363.30 points. The index fell nearly 1% this week as sentiment was affected by US President Donald Trump's higher tariff on India and selling by foreign institutional investors. FIIs have been net sellers for 13 sessions now, dumping equities worth INR 411 billion. The market was also weighed down by unwinding of long positions at in-the-money put options between 24550 and 25750 strike prices.

 

On the call side, traders added short bets across the board, with the maximum open interest added at 24500-25000 strike prices. This implies that even if there is a short-term bounce-back due to the market being oversold, a rise beyond 24500 points and a recovery above the 25000 level is highly unlikely in the near term. Ajit Mishra, senior vice-president of technical research at Religare Broking, said 24200-24000 points "is the support zone and we expect markets to stabilise around that zone".

 

--Nifty 50 Aug closed at 24430.00, down 243.40 points; 66.70-point premium to the spot index

--Nifty 50 Sept closed at 24567.00, down 238.90 points; 203.70-point premium to the spot index

--Nifty 50 Oct closed at 24681.60, down 318.30 points; 357.05-point premium to the spot index

 

Bharti Airtel, State Bank of India, HDFC Bank, Kalyan Jewellers India, BSE, Reliance Industries, Cummins India, Titan Co., AU Small Finance Bank, Infosys, PG Electroplast, ICICI Bank, Adani Enterprises, Coforge, and Dixon Technologies (India) were the most active underlying stocks Friday.  End

 

Edited by Rajeev Pai

 

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