More Stories

Informist, Tuesday, Jul. 14, 2026

 

MUMBAI – The market sentiment, which was subdued for a few sessions, may turn decisively negative in the near term as traders added fresh short positions in the Nifty 50 index derivatives and the July futures contract of the benchmark index ended at a discount to the spot level Tuesday. There was weak demand for out-of-the-money call contracts, whereas put contracts expiring Jul. 21 saw large buying interest across strike prices. With the June quarter results likely to drive stock-specific action and fresh escalation of the war in West Asia driving crude oil prices higher, market volatility is likely, analysts said.

 

"Indian equities are expected to trade sideways with some volatility expected in the near term amid escalating geopolitical tensions in West Asia, Brent crude prices remaining above USD 85 per barrel and weak global cues," Siddhartha Khemka, head of research, wealth management, at Motilal Oswal Financial Services, said in a note. Oil prices rose Tuesday after US President Donald Trump announced plans to impose shipping fees in the Strait of Hormuz and reinstate a blockade of Iranian ports. Tuesday, the Nifty 50 ended at 24052.05 points, down 0.7% from Monday.

 

Traders sold call options across 24100–25000 strike prices, pushing premiums on these contracts down by around 50%. They also unwound long positions across deep out-of-the-money call contracts. The July futures contract of the Nifty 50 ended at 24022, down 220.80 points or 1% from Monday.

 

The Nifty 50 is likely to find support at 24000 points, considering the heavy open interest built up for put contracts at that strike price. However, with traders adding fresh short positions across 23300-23800 strike prices, the support at 24000 points could be untenable. The Nifty 50 could encounter strong hurdles at 24300 and 24500 levels in the short term, Nagaraj Shetti, senior technical research analyst at HDFC Securities, said. He sees the 50-stock index finding support at 23800 points.

 

Traders added short positions and unwound long positions in the Nifty Bank derivatives just a day after options data had indicated the possibility of the sectoral index rising. The war in West Asia increases the possibility of foreign investors selling domestic equities again and traders are probably purchasing deep-out-of-the-money put contracts as financial services and banking stocks are often the worst hit when an outflow of foreign funds starts, Rupak De, senior technical analyst at LKP Securities, said. Call contract selling was prominent at 58000-61000 strike prices and premiums on these contracts dropped 40-50%. Traders also purchased put contracts across 55000-57000 strike prices. The Nifty Bank index ended at 57462.30 points Tuesday.

 

Traders relentlessly sold call options of HDFC Life Insurance Co. throughout the session, ahead of its June quarter earnings Wednesday. They also added fresh short positions on the stock, pushing premiums on out-of-the-money put options several times higher. Traders sold call options across INR 570-INR 600 strike prices and also purchased put options at INR 510–INR 550 strike prices. Brokerage Motilal Oswal Financial Services expects a drop in value of new business for the insurance company, which will affect margins. Expectations of the stock dropping to INR 510 implies a downside of nearly 9% from the stock's closing price Tuesday.

 

--Nifty 50 July closed at 24022.00, down 220.80 points; 30.05-point discount to the spot index

--Nifty 50 August closed at 24142.20, down 187.90 points; 90.15-point premium to the spot index

--Nifty 50 September closed at 24266.30, down 206.30 points; 214.25-point premium to the spot index

 

Biocon, HCL Technologies, HDFC Bank, Tata Consultancy Services, Kalyan Jewellers India, Infosys, ICICI Bank, State Bank of India, Divi's Laboratories, and Reliance Industries were the most actively traded underlying stocks Tuesday.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.