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Informist, Thursday, Aug. 28, 2025

By Akash Mandal

MUMBAI – The Nifty 50 may test the 24200-24300 levels in the coming sessions but is unlikely to fall below the psychologically important 24000 level, options data showed. Some volatility is also expected as the weekly expiry of the Nifty 50's options contract will be effective Tuesday instead of Thursday from next week. Traders bought put options at the 24200 and 24300 strike prices expiring Tuesday, which have among the highest open interest concentrations. However, traders sold the 24000 strike, with the highest open interest concentration of almost 6 million. 

Factors that will keep investors' sentiment weak towards the Indian equities include high valuations, slow pickup in earnings growth, US tariff-related uncertainties, and better risk-reward offered by other emerging markets, analysts said. The market is still discounting the impact of 25% additional tariffs on India, but some analysts believe this is a temporary tactic by the US to pressurise India to reduce its Russian crude oil imports. On a technical level, analysts expect a bounce-back in equities soon, even though the near-term outlook remains hazy. 

"We believe that the short-term market outlook is weak, but since it is oversold, a quick pullback rally from the current levels cannot be ruled out," said Shrikant Chouhan, head equity research at Kotak Securities. "For day traders, 24600 would be a key level; as long as the market remains below this, the weak sentiment is likely to continue...on the lower side, the market (Nifty 50) could slip to 24350–24300," he added. The Nifty 50 closed over 211 points or 0.9% lower at 25000.90 points. 

There was long unwinding in some call and put strikes of the Nifty 50, which added pressure on the spot level. "Domestic equities ended lower as pessimism took hold following the implementation of tariffs on Indian goods, dampening investor sentiments," said Vinod Nair, head of research at Geojit Investments, in a note. Most sectors, including auto, information technology, fast-moving consumer goods, and metals traded in the red as investors turned to book their profits following recent gains, Nair said.

The highest open interest addition as well as concentration was at 24000-point put and 25000-point call options. The 50-stock index is unlikely to rise above the psychologically important 25000 levels in the near term. Although some short covering is expected as the market is in an "oversold" zone, the index is likely to remain below the 24800 level.

--Nifty 50 Aug closed at 24500, down 231.50 point; 0.9-point discount to the spot index

--Nifty 50 Sept closed at 24668.40, down 189.10 points; 167.50-point premium to the spot index

--Nifty 50 Oct closed at 24985.60, down 203.90 points; 284.70-point premium to the spot index

HDFC Bank, Reliance Industries, ICICI Bank, InterGlobe Aviation, State Bank of India, Infosys, Axis Bank, Hindustan Aeronautics, Tata Consultancy Services, Bajaj Finance, Maruti Suzuki India, Bharti Airtel, Kotak Mahindra Bank, RBL Bank, and Tata Motors were the most active underlying stocks Thursday.  End

Edited by Akul Nishant Akhoury

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