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Nifty ends lower amid concerns over Trump’s tariff deadline
Jul-02-2025

Indian equity benchmark -- Nifty -- ended lower on Wednesday. Index made a positive start amid reports suggesting that US-India trade deal is in the final stage of negotiations. Soon, index erased all initial gains and slipped in red terrain. Traders avoided risky bid ahead of looming concerns over Trump’s tariff deadline. Some cautiousness came with exchange data which showed Foreign Institutional Investors (FIIs) sold equities worth Rs 1,970.03 crore on Tuesday. However, market participants overlooked credit rating agency ICRA’s report that it reaffirmed a stable outlook for the Indian IT services industry, forecasting a year-on-year revenue growth of 2-3 per cent in US dollar terms for the fiscal year 2025-26. In afternoon session, index extended losses and continued its choppy trade for most part of the session. In last leg of the trade, index trimmed some of its losses but remained in red terrain and closed below 25,500 mark.

Traders were seen piling up positions in Metal, Consumer Durables and Pharma stocks, while selling was witnessed in Realty, PSU Bank and Private Bank. The top gainers from the F&O segment were Tata Communications, Aditya Birla Fashion and Retail, and Mankind Pharma. On the other hand, the top losers were RBL Bank, NCC and Tube Investments of India. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 24900 - 25100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 0.65% and reached 12.45. The 50 share Nifty down by 88.40 point or 0.35% to settle at 25,453.40.

Nifty July 2025 futures closed at 25539.90 (LTP) on Wednesday, at a premium of 86.50 points over spot closing of 25453.40, while Nifty August 2025 futures ended at 25645.00 (LTP), at a premium of 191.60 points over spot closing. Nifty July futures saw a contraction of 822 units, taking the total open interest (Contracts) to 1,93,129 units. The near month derivatives contract will expire on July 31, 2025. (Provisional) 

From the most active contracts, Infosys July 2025 futures traded at a premium of 10.40 points at 1620.00 (LTP) compared with spot closing of 1609.60. The numbers of contracts traded were 36,374. (Provisional)

State Bank of India July 2025 futures traded at a premium of 3.00 points at 815.70 (LTP) compared with spot closing of 812.70. The numbers of contracts traded were 24,961. (Provisional)

IndusInd Bank July 2025 futures traded at a premium of 4.40 points at 861.15 (LTP) compared with spot closing of 856.75. The numbers of contracts traded were 23,231. (Provisional)

Dixon Technologies (India) July 2025 futures traded at a premium of 72.00 points at 15246.00 (LTP) compared with spot closing of 15174.00. The numbers of contracts traded were 21,169. (Provisional)

ICICI Bank July 2025 futures traded at a premium of 9.10 points at 1436.90 (LTP) compared with spot closing of 1427.80. The numbers of contracts traded were 20,694. (Provisional)

Among, Nifty calls, 26000 SP from the July month expiry was the most active call with an additional of 7,777 units open interests. Among Nifty puts, 25500 SP from the July month expiry was the most active put with an additional of 4,929 units open interests. The maximum OI outstanding for Calls was at 26000 SP (63,838 units) and that for Puts was at 25000 SP (88,300 units). The respective Support and Resistance levels of Nifty are: Resistance 25581.42 -- Pivot Point 25480.08 -- Support 25352.07.

The Nifty Put Call Ratio (PCR) finally stood at (1.20) for July month contract. The top five scrips with highest PCR on Blue Star (1.26), One97 Communications (1.25), Syngene International (1.08), Polycab India (1.07) and Laurus Labs (1.03).

Among most active underlying Infosys witnessed an additional of 2,107 units of Open Interest in the July month future, ICICI Bank witnessed an additional of 3,408 units of Open Interest in the July month future, Dixon Technologies (India) witnessed a contraction of 953 units of Open Interest in the July month futures, HDFC Bank witnessed a contraction of 360 units of Open Interest in the July month futures and Bharat Electronics witnessed a contraction of 313 units of Open Interest in the July month futures. (Provisional).

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