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Informist, Wednesday, Dec. 10, 2025

By Simran Rede

MUMBAI – Traders aggressively wrote out-of-the-money call options of the Nifty 50 on expectations that the index will fall more in the near term. They also added short positions in the put options of the derivatives chain. The weakness is expected to continue due to the depreciating rupee, continued delay in the US-India trade deal, likelihood of more US tariffs, and the upcoming US Federal Open Market Committee's monetary policy decision.

However, Indian equities are expected to rise in 2026 despite global uncertainty, analysts said. "India remains a beacon of growth amid global turbulence," Shripal Shah, managing director and chief executive officer of Kotak Securities, said in its market outlook for 2026. "Our outlook for equities is upbeat, driven by robust earnings projections and policy support while gold is expected to retain its shine as a safe-haven asset in 2026."

Global markets are said to have priced in a 25 basis point rate cut by the FOMC. However, US Federal Reserve Chair Jerome Powell's comments on the labour market and interest rate trajectory may move the market.

The Nifty 50 is currently trading at 20.5 times price-to-earnings of 2026-27 (Apr-Mar), which is close to its long-period average, Kotak Securities said. On Wednesday, the index settled at 25758.00, down 81.65 points or 0.3%. The BSE Sensex closed at 84391.27 points, down 275.01 points or 0.3%. Both indices closed lower for the third consecutive session, falling 1.5-1.6% in this period. The 50-stock index stayed below its crucial support level of 26000 points for the second day.

Options data shows the index is facing multiple resistance levels, with key resistance at 26050 points and support around 25500 points for the current expiry week, Vipin Kumar, assistant vice-president, technical and derivatives, Globe Market Capital, said.

In the short term, the Nifty 50 is likely to stay under selling pressure, Rupak De, senior technical analyst at LKP Securities, said in a note. He expects the index to find immediate support at 25700 points and a decisive fall below this level could take the index down to 25610 and 25530 points.

Open interest addition in call contracts of 26000-25900 strike prices expiring Tuesday were the highest, up over 5 million each. Premiums on 25900-26200 strike call contracts, which are around 1% higher from the spot level, rose 35-37%. The maximum addition and the highest concentration of open interest were at 26000 call contract.

On the put side, premiums on contracts lower than the spot level rose, indicating a fall in the index in the near term. Premiums on 24000-25750 put strikes expiring next week increased 2-110%. The maximum addition and the highest concentration of open interest were at 25500 put contract.

--Nifty 50 December closed at 25857.00, down 103.20 points; 99.00-point premium to the spot index
--Nifty 50 January closed at 26026.10, down 105.10 points; 268.10-point premium to the spot index
--Nifty 50 February closed at 26171.00, down 102.00 points; 413.00-point premium to the spot index

InterGlobe Aviation, Kaynes Technology India, Dixon Technologies (India), HDFC Bank, ICICI Bank, BSE, Reliance Industries, Multi Commodity Exchange of India, AU Small Finance Bank, Hindustan Zinc, Vedanta, Bharti Airtel, Vodafone Idea, Eicher Motors, Adani Green Energy, Infosys, State Bank of India, and One 97 Commumnications were the most actively traded underlying stocks Wednesday.  End

Edited by Ashish Shirke

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