Options data reflects a bullish bias, with aggressive put writing and Max Pain around 25,000.
Indian equity markets are expected to open on a positive note on Tuesday, amid mixed global cues. Analysts expect the consolidation phase to continue due to strong macro factors. Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said “We expect the market to continue its gradual up-move, on the back of strong domestic cues – better than expected Q4 corporate earnings, RBI’s liquidity-boosting measures, above average monsoon forecast and the likely US-India trade deal.”
Gift Nifty is ruling at 25,250, which indicates a gap-up opening of about 70 points for Nifty. Major equities across the Asia-Pacific region were up in early trade on Tuesday.
The return of foreign portfolio investors, after selective buying in th last few days, bode well for market in this consolidation phase, experts added.
According to a JM Financial study, in May 2025, both FIIs and DIIs were net buyers in the Indian equity market (with buying of USD 1.7bn and USD 7.9bn, respectively). “Sectors which witnessed the highest inflows included Telecom (USD 946mn), Cap Goods (USD 623mn), BFSI (USD 470mn) and Oil & Gas (USD 295mn), while those which saw the highest outflows included Pharma (USD 306mn), Power (USD 292mn), IT (USD 285mn), Durables (USD 203mn), Realty (USD 194mn) and Services (USD 58 mn),” it added. Soon, we can expect a bout of profit booking and sectoral rotation from institutional investors, they added.
Meanwhile, F&O data continues to give a positive signal.
Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said the options data continues to support a positive outlook, with aggressive put writing visible at near-the-money levels. ]The Put-Call Ratio (PCR) has slightly declined from 0.97 to 0.94, indicating a fading bearish bias and steady bullish momentum. Max Pain stands anchored at 25,000, implying traders expect the index to expire around current levels, he added.
Meanwhile, the India VIX, hovering near 14, reflects waning fear and growing optimism.
Published on June 10, 2025