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Nifty Futures: 25,033 (+0.02%) | Bank Nifty Futures: 59,604 (+1.15%)

Indian equity benchmarks ended Monday’s volatile session with modest gains, taking their closing levels to their highest in over eight months. The indices had rallied nearly 10.5% over seven consecutive sessions through Friday, marking their longest winning streak this year. The rally was supported by easing crude oil prices, a revival in foreign portfolio investor (FPI) inflows and a shift away from global AI-linked investments. However, the special Diwali trading session witnessed mild profit-booking, with markets closing on a relatively subdued note amid the festive optimism surrounding the beginning of the new Samvat year.

The Nifty 50 gained 4 points to settle at 25,033, while the Bank Nifty advanced 1.15% to close at 59,604.

Stock Futures:

Indian Renewable Energy Development Agency (IREDA) surged 7.47% in the spot market to rs 119.65, while futures rallied 8.40% to rs 120.24, amid aggressive short covering, with futures open interest declining sharply by 16.44% to 4.81 crore contracts. The stock’s one-week return improved to nearly 15.8%, despite remaining down around 20% over the past year, supported by strong buying interest and higher volumes following its Q2 earnings announcement. The state-owned lender reported a marginal 0.5% YoY increase in net profit to rs 552 crore, while operating profit rose a robust 16.5% to rs 904 crore, keeping investor focus on sustained lending growth and asset quality in the renewable energy sector.

In the derivatives segment, futures maintained a premium, with the basis at 0.59 points. Options data indicated improving support, with Put OI rising 36.13% to 2.51 crore contracts, outpacing the 29.00% increase in Call OI to 3.20 crore contracts. Consequently, PCR OI increased 6.76% to 0.79, indicating improving bullish positioning. Meanwhile, implied volatility surged 5.73% to 41.35, led by an 8.78% jump in Put IV, reflecting heightened trading activity and increased demand for downside protection amid the sharp rebound.

Jubilant FoodWorks (JUBLFOOD) declined 4.99% in the spot market to rs 428.50, while futures dropped 5.15% to rs 429.85, amid aggressive short build-up, with futures open interest surging 15.42% to 1.82 crore contracts. The sharp sell-off followed a disappointing Q2 earnings performance, with net profit plunging 43% YoY, overshadowing an 11.84% growth in revenue from operations to rs 26,078.87 crore. The sharp decline in profitability weighed heavily on investor sentiment towards the operator of Domino’s Pizza and Popeyes.

In the derivatives segment, options data indicated aggressive overhead supply, with Call OI surging 79.57% to 1.29 crore contracts, significantly outpacing the 20.03% rise in Put OI to 67.26 lakh contracts. Consequently, PCR OI declined 33.33% to 0.52, indicating a strong bearish bias. Meanwhile, implied volatility increased 0.90% to 37.00, led by a 2.02% rise in Call IV, reflecting heightened uncertainty and continued downward pressure following the earnings disappointment.

Tata Steel (TATASTEEL) declined 2.81% in the spot market to Rs 184.85, while futures slipped 2.97% to rs 185.29, amid marginal short build-up, with futures open interest rising 0.94% to 34.07 crore contracts. The stock witnessed selling pressure despite reporting a 16% YoY increase in Q2 consolidated net profit, driven largely by robust Indian operations. However, concerns over sharper-than-expected EBITDA losses in its UK operations weighed on sentiment. Although European operations are expected to report an improvement in EBITDA and the UK business is projected to break even by the March quarter, near-term earnings concerns kept investors cautious.

In the derivatives segment, options data indicated aggressive overhead supply, with Call OI surging 41.45% to 13.29 crore contracts, significantly outpacing the 4.29% rise in Put OI to 8.56 crore contracts. Consequently, PCR OI declined 26.44% to 0.64, indicating a strong bearish bias. Meanwhile, implied volatility increased 1.80% to 34.16, led by a 2.80% rise in Call IV, reflecting heightened uncertainty and sustained downward pressure amid mixed earnings performance.

HCL Technologies (HCLTECH) declined 2.43% in the spot market to rs 1,407.00, while futures slipped 2.29% to Rs 1,410.50, amid fresh short build-up, with futures open interest rising 3.95% to 2.02 crore contracts. Despite beating Q2 FY27 revenue and margin estimates and reporting its strongest first-half bookings, the stock faced selling pressure in line with the broader IT sector, with the Nifty IT index declining nearly 2%. Investor sentiment remained cautious amid concerns over the widening gap between substantial AI infrastructure investments and actual monetisation, coupled with persistent weakness in traditional discretionary technology spending.

In the derivatives segment, futures maintained a marginal premium, with the basis at 3.50 points (0.25% above spot). Options data indicated rising overhead supply, with Call OI increasing 16.99% to 57.89 lakh contracts, outpacing the 8.00% rise in Put OI to 42.19 lakh contracts. Consequently, PCR OI declined 7.59% to 0.73, indicating a bearish options bias. Meanwhile, implied volatility increased 1.05% to 32.51, led by a 2.08% rise in Call IV, reflecting heightened uncertainty and continued selling pressure despite the company’s stronger-than-expected earnings performance.

Put-Call Ratio Snapshot:

The Nifty PCR declined to 1.23 from 1.28, indicating some moderation in put-side positioning relative to calls. Conversely, Bank Nifty PCR increased to 1.27 from 1.21, reflecting stronger put-side positioning.

Participant-wise Open Interest: Net Activity:

Index Futures: FIIs led a net position addition of 10,718 contracts, primarily through short covering of 7,386 contracts. This was partly offset by net position reductions from DIIs (-5,079), Proprietary desks (-4,629) and Clients (-1,010).

Stock Futures: FIIs aggressively reduced positions by 41,608 contracts through long unwinding and fresh short additions. Proprietary desks also remained net sellers (-13,665), while DIIs (+29,745) and Clients (+25,528) absorbed the supply through accumulation.

Index Options:

Calls: FIIs led net buying (+22,700 contracts), while Proprietary desks (-18,995) and Clients (-7,035) remained net sellers.

Puts: Clients aggressively added downside positions (+57,395 contracts), which were absorbed by heavy put writing from FIIs (-49,117) and Proprietary desks (-8,563).

Stock Options:

Calls: Clients led aggressive buying (+1,32,477 contracts), while Proprietary desks (-68,650), DIIs (-36,813) and FIIs (-27,014) were net sellers.

Puts: FIIs (+7,169) and Clients (+4,026) added positions, while Proprietary desks (-9,988) and DIIs (-1,207) remained net sellers.

Overall, FII positioning remained constructive in Index Futures and Options, supported by short covering and call buying. However, aggressive selling in Stock Futures and Stock Options highlighted selective caution, while DIIs and Proprietary desks largely absorbed the opposing flows.

Securities in Ban for Trade Date 11-November-2026:

1. KAYNES

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