India's key stock market indices extended their declining streak into a third consecutive trading session on Tuesday, closing nearly half a percent lower. The sell-off was broad-based, with significant pressure on sectors including metals, media, real estate, financial services, fast-moving consumer goods (FMCG), and banking.
Market Performance and Key Movers
The benchmark S&P BSE Sensex concluded the session at 85,251.64, marking a decline of 390.26 points or 0.46%. Similarly, the broader Nifty 50 index ended at 26,056.30, down by 119.45 points or 0.46%. The banking sector gauge, Bank Nifty, also traded in the red, falling 199.40 points or 0.33% to settle at 59,481.95.
This downward movement follows a muted performance on Monday, where the Sensex had shed 64.77 points and the Nifty 50 dropped 27.20 points, forming a bearish candlestick pattern on the daily chart.
Among the Nifty 50 stocks, Asian Paints, Dr Reddy’s Laboratories, NTPC, Jio Financial Services, and Trent emerged as the top performers. On the losing side, InterGlobe Aviation (IndiGo), HDFC Life Insurance Company, Bharat Electronics, ICICI Bank, and Eternal were the major laggards.
Options Market Signals and Trading Range
Analysis of the derivatives market provides insight into potential support and resistance levels for the Nifty. According to a note from Axis Securities, the highest open interest on the Call side is concentrated at the 26,300 strike, followed by 26,500, indicating these levels could act as resistance.
On the Put side, the 26,000 strike holds the maximum open interest, with the 26,100 strike next, suggesting these are key support zones to watch. The brokerage noted that the premium for the At-the-Money option stands at ₹280, pointing to a likely weekly trading range between 25,900 and 26,500 for the Nifty.
Recommended Options Strategy for Moderate Bulls
For traders with a cautiously optimistic outlook, Axis Securities has recommended a specific options strategy for contracts expiring on 9 December 2025.
Strategy: Bull Call Spread
This approach involves two simultaneous actions:
- Buying one lot of the Nifty 26,200 Call option at an estimated premium between ₹175 and ₹155.
- Selling one lot of the Nifty 26,500 Call option at a premium ranging from ₹55 to ₹65.
The break-even point for this strategy is calculated at 26,320. Axis Securities highlights that the maximum potential risk is capped at ₹9,000, while the maximum reward potential is ₹13,500.
The brokerage advises traders to execute both legs of the strategy together and to square off the position before the market closes on the expiry day to manage risk effectively.
Disclaimer: The views and investment recommendations expressed are those of the individual analysts or brokerage firms. Readers are strongly advised to consult with certified financial experts before making any investment decisions.
