Informist, Friday, Jul. 4, 2025

By Anjana Therese Antony

MUMBAI – The options chain of the Nifty 50 indicates that the index is likely to continue to consolidate ahead of the June quarter earnings season starting next week. Premiums across call and put options of the Nifty 50 expiring Thursday fell. Some derivatives analysts said the Indian equity market will continue to move in a tight range and investors will wait for developments in trade talks between US and its trading partners.

"I don't think the market has factored in the worst (case scenario). If favourable deals are not made (between the US and India), it is highly likely that our market will fall," a senior research analyst at a domestic broking firm said. However, the analyst do not expect the market to fall to the lowest level seen in April. "Even though not much is expected from this earnings season, we expected (management) comments to provide some relief," the analyst said. 

Benchmark indices closed higher Friday after ending lower in the last two consecutive sessions. The Nifty 50 and the BSE Sensex each ended 0.2% higher at 25461 points and 83432.89 points, respectively. The 25000 level remains a strong support for the index and investors' bias is expected to remain bullish as long as it remains above this mark, derivatives analysts echoed. The resistance is seen for the near term is seen at 25600-25650 points. 

Premiums on 25450-26300 call options of the Nifty 50 expiring next week declined 2-34% and those on 25400-24500 put contracts fell 24-26%. The highest addition of open interest was at 27400-point call and 25200-point put strikes.

Market participants are waiting for the US to strike a trade deal with other countries, including India, ahead of the deadline of reciprocal tariffs next week. The US is unlikely to sign a deal with India in the next two days and all options are available on the table, government sources told Informist. 

--Nifty 50 Jul closed at 25552.00, up 43.40 points; 91.00-point premium to the spot index

--Nifty 50 Aug closed at 25659.00, up 44.00 points; 198.00-point premium to the spot index

--Nifty 50 Sep closed at 25810.00, up 37.50 points; 349.00-point premium to the spot index

Trent, BSE, Bajaj Finance, Hindustan Aeronautics, HDFC Bank, Bosch, Bharat Electronics, ICICI Bank, Reliance Industries, Infosys, Central Depository Services India, Angel One, State Bank of India, Marico, Dixon Technologies India, and Axis Bank were the most active underlying stocks Friday.  End

Edited by Deepshikha Bhardwaj

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