Stock Market News: Option Writers Send Nifty in Narrow Zone

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Chartists such as Kolkata-based Amith Seth are spotlighting the auto sector for showing strength.

By S JHA

Mumbai, December 2, 2025 — A major crash in Rupee sent stock market erasing euphoric gains of the early trades yesterday. The 50-share index is likely to open flat on Tuesday, which is also a day of expiry of the option contracts for the index.

Analysts claimed that option writers—put and call—have narrowed the trading zone of the 50-share index. With European markets opening lower, Indian equity markets had also plunged to recover in last hour of trades.

Angel One in its post-market analysis noted that put writers have taken positions at levels of 26000 and 26100. At the same time, the call writers have placed bets at 26300 and 26400. Yesterday, Nifty had failed to cross the 26300 barriers, while on the lower side took support at around 26100 levels. Analysts claimed that Nifty may trade in a narrow zone until the next big trigger for an up move arrives.

Angel One in its note advised that traders should adopt the strategy of “buying on dips.” It added that Nifty has a strong support around 26100.

“While small-caps showed some resilience, broader market breadth was weak, with more stocks declining than advancing. Overall, the day reflected a tug-of-war between strong macroeconomic optimism and short-term caution among investors,” said StockEdge in its analysis on the stock market.

Chartists such as Kolkata-based Amith Seth are spotlighting the auto sector for showing strength. The likes of Eicher Motors, Hero Moto Corp, Tata Motors (Passenger), and Maruti were buzzing in trades yesterday.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)