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Informist, Monday, Aug. 11, 2025

By Akash Mandal

MUMBAI – Options data showed the Nifty 50 may only see minor gains from here as sentiment remains weak owing to tariffs imposed by the US. Traders covered short positions across strike prices Monday, driven by buying interest in the market after Nifty 50 fell to oversold levels last week.

Short covering was seen at in-the-money and at-the-money call options below 24800 points, indicating hopes of some gains in the Nifty 50. However, they continue to sell out-of-the-money call options above 24900 strike prices, suggesting the traders are not betting on any sharp rise in the index. The highest open interest on the call side was at the 25000 strike price, followed by 24600 strike prices, and these levels are expected to act as a strong resistance for the 50-stock index. 

With June quarter petering out, focus will now shift to the likelihood of a rate cut in the US in September, chances of a rate cut by the Reserve Bank of India at its next policy meeting, and the visible effects of US President Donald Trump's massive reciprocal tariffs on the US economy.

The Nifty 50 closed the session nearly 1% higher at 24585.05 points as investors covered their short positions amid highly oversold market conditions. The indices had started the session on a sluggish note but picked up pace midway, led by heavyweights such as HDFC Bank, State Bank of India, and Reliance Industries.

On the put side, traders sold across the board with the highest open interest at the 24400 strike price. Nearly 60% of the open interest on the 24400-strike price put options was added on Monday. However, there was also significant open interest addition at the 24000 and 23500 strike prices, implying that the 50-stock index might plunge to these levels if there is a negative shock for the market in the coming sessions. 

--Nifty 50 Aug closed at 24614.00, up 172.90 points; 28.95-point premium to the spot index

--Nifty 50 Sept closed at 24741.90, up 165.10 points; 156.85-point premium to the spot index

--Nifty 50 Oct closed at 24850.00, up 156.60 points; 264.95-point premium to the spot index

State Bank of India, PG Electroplast, Tata Motors, Reliance Industries, HDFC Bank, Eternal, ICICI Bank, One97 Communications, Adani Enterprises, Bharti Airtel, Infosys, Voltas, Axis Bank, BSE, and Hindustan Petroleum Corp. were the most active underlying stocks Monday.  End

Edited by Akul Nishant Akhoury

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