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Informist, Monday, Oct. 13, 2025

 

By Anjana Therese Antony

 

MUMBAI – Some cautious bets were added to the options chain of Tech Mahindra ahead of a likely strong earnings outcome due Tuesday. The company is expected to report strong double-digit sequential growth in its bottom line for the September quarter and outperform most of the IT players which are part of the Nifty 200 index. Premiums on deep out-of-the-money call options expiring Oct. 28 fell marginally and those on put contracts increased slightly, hinting at the near-term caution. 

 

Tech Mahindra is India's sixth-largest IT company in terms of market capitalisation and is part of the Nifty 50 index. Monday, its shares closed 0.4% lower at INR 1,450.90 on the National Stock Exchange, with a market capitalisation of INR 1.42 trillion. The volume of the stock traded was 1.23 million, which was 31% higher than Friday. 

 

The near-term support for the stock is pegged at INR 1,440-INR 1,400 and resistance at INR 1,460-INR 1,500, according to a technical and derivatives analyst at a domestic broking firm. The current market price is still 21% lower than the stock's record high of INR 1,838 hit in December 2021. The analyst does not expect the stock price to cross the all-time high at least for the next couple of months. 

 

In the options chain of the company, premiums on INR 1,480-INR 1,520 call contracts, which are 2-5% higher than the spot level, fell almost 13% and that on put contracts INR 1,440-INR 1,380 increased 2-3%. The highest addition of open interest was at INR 1,460 call and INR 1,440 put options. The maximum concentration of open interest was at INR 1,500 call and INR 1,400 put strikes. 

 

Some short bets were also added to the futures series of Tech Mahindra. The October contract closed 0.3% lower at INR 1,448.60 and open interest rose over 2% to 15.63 million. 

 

For the September quarter, Tech Mahindra is likely to report a near 14% sequential growth in its consolidated net profit to INR 12.94 billion, as per the average of estimates from 17 brokerages. Its revenue is likely to rise just a little over 3% from the previous quarter to INR 138.08 billion. Compared with the year-ago period, this would mean a 4% growth in the bottom line and a near 4% rise in the top line. 

 

The overall equity market closed slightly lower Monday, led by losses in information technology and consumer goods stocks. The Nifty 50 snapped a two-day winning run and closed 0.2% lower at 25227.35 points. The technical and derivatives analyst said 25100-25000 levels will act as a key support for the index in the near term while sustainance above 25300 level would trigger further upside in which case it will test the next key hurdle of 25400-25450 points. 

 

--Nifty 50 October closed at 25321.90, down 89.10 points; 94.55-point premium to the spot index

--Nifty 50 November closed at 25452.00, down 88.10 points; 224.65-point premium to the spot index

--Nifty 50 December closed at 25612.00, down 89.90 points; 384.65-point premium to the spot index

 

BSE, Tata Motors, Vodafone Idea, HDFC Bank, Multi Commodity Exchange of India, Infosys, Reliance Industries, ICICI Bank, State Bank of India, Tata Consultancy Services, Axis Bank, HCL Technologies, Maruti Suzuki India, and Federal Bank were the most active underlying stocks Monday.  End

 

Edited by Akul Nishant Akhoury

 

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