Nifty near 24,600 on weekly expiry, Sensex echoes muted Asian markets as volatility rises

So far this week, Nifty 50 has gained one percent.

Dalal Street saw a flat start to the session, mirroring muted Asian markets in trade, on Thursday, August 14. However, the benchmark equity indices Nifty 50 and Sensex are geared to snap a six-week losing streak in trade today.

At 09:16 a.m., the Sensex was up 74.92 points or 0.09 percent at 80,614.83, and the Nifty was up 24.30 points or 0.10 percent at 24,643.65. About 1352 shares advanced, 873 shares declined, and 150 shares unchanged.

The sectoral performance on Dalal Street was mixed. IT and pharma indices led the gains, rising 0.7 percent and 0.8 percent respectively. Realty also edged higher by 0.15 percent. On the downside, metals slipped 0.81 percent, while energy, infra, PSU banks, FMCG and auto traded marginally lower.

On the broader market front, midcap and smallcap indices inched up 0.19 percent and 0.18 percent respectively, while the Nifty Next 50 gained 0.15 percent.

Although local markets have seen a rebound this week, the upside has been capped amid concerns of Trump’s tariff hikes on India, noted Prashanth Tapse, Senior VP (Research), Mehta Equities. He added that even though the markets will be closed tomorrow on account of Independence Day, investors will be watchful of the Trump–Putin summit to take place in Alaska.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments added, "The market will be in a wait and watch mode looking for clues from the Trump-Putin summit and PM Modi’s Independence Day message. From the technical perspective, the market is oversold and short-positions are high. Any positive news which triggers short covering can lead to a rally. We will have to wait and watch."

Global markets

The benchmark S&P 500 and the Nasdaq Composite Index scored record highs for the second straight session, while the Dow Jones Industrial Average finished stronger. The Dow gained 1 percent, the S&P 500 rose 0.32 percent, and the Nasdaq Composite added 0.14 percent.

Asian markets were trading lower in the early trade on Thursday with Nikkei down nearly 1 percent.

Institutional flows

In the previous session, FIIs net sold equity shares worth Rs 3,644 crore, having bought stocks valued at Rs 11,350 crore, in contrast, DIIs net purchased equities worth Rs 5,623 crore, according to provisional NSE data.

Technical levels

The immediate support remains at 24,520, followed by the 24,450 band. Nifty lacks a clear direction, and oscillation within the broader range cannot be ruled out in the next session. However, a buy-on-dip approach remains applicable if the index sustains above the resistance zone, noted Om Mehra, Technical Research Analyst, SAMCO Securities.

Derivative outlook

The derivatives structure reflects a cautiously optimistic undertone, with put writers outpacing call writers, though confirmation is awaited. The 25,000 strike has witnessed aggressive call writing, with open interest rising to 1.64 crore contracts, marking it as a strong resistance point. Conversely, the 24,600 strike holds the highest put OI at 1.68 crore contracts, serving as immediate support.

"Interestingly, put writers have been adding positions and moving to higher strikes, while call writers remain reluctant to shift upwards — a sign of guarded sentiment. The Put-Call Ratio (PCR) has jumped from 0.65 to 1.09, reflecting growing conviction among put-side participants," said Dhupesh Dhameja, Samco Securities.

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