Brutal one sided sell-off takes Nifty to 25,400 levels
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
In our latest episode of In The Money by Zerodha video series, we focus on the most practical question in derivatives trading: how to size options strategies in the real world.
We extend the backtest-driven framework from futures into structured option strategies like short straddles and strangles, with a clear focus on the Indian F&O environment where cash, margin rules, and lot-size changes directly shape risk.
Market Overview
Nifty opened with a 54-point gap-up at 25,873 but came under immediate selling pressure in the opening hour, slipping steadily toward the 25,750–25,770 zone as early optimism faded. The weakness persisted through the morning session, with the index gradually drifting lower and breaking below 25,700, and then 25,600 by noon.
In the second half, Nifty traded in a narrow range, with only brief and shallow pullbacks between 25,550 and 25,600 until around 2:30 PM. Thereafter, selling intensified sharply, with the index sliding nearly 150 points into the final hour and hitting intraday lows near the 25,390–25,400 zone. Nifty eventually closed at 25,454.35, marking a weak session dominated by sustained, largely one-sided selling and a clear risk-off tone despite the positive opening.
Looking ahead, markets are likely to remain sensitive to global risk appetite and key domestic cues.
Broader Market Performance:
The broader market had a severe bearish session today. Of the 3,249 stocks that traded on the NSE, 831 advanced, 2,308 declined, and 110 remained unchanged.
Sectoral Performance:
Nifty Pharma was a relatively better performer with a -0.50% cut, while Nifty Realty was the worst hit, down -2.56%. Overall, 0 sectors closed in green, and 12 sectors ended in red.
Here’s the trend of FII-DII activity from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 24th February:
The maximum Call Open Interest (OI) is observed at 25,800, followed by 25,700 & 25,600, indicating potential resistance at the 25,600 -25,700 levels.
The maximum Put Open Interest (OI) is observed at 25,000, followed by 25,500, suggesting support at 25,300-25,200.
Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.
Source: Sensibull
Tijori is an investment research platform that has constructed niche indices for various themes and sub-sectors. They help you understand the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
What’s happening in India
Reliance Industries will invest ₹10 lakh crore over the next seven years to build AI capabilities, including sovereign computer infrastructure and gigawatt-scale data centres. Dive deeper
TCS shares were in focus after the Tata Group and OpenAI announced a strategic partnership to build AI infrastructure in India, including joint market solutions and AI-ready data centres, providing a boost to investor sentiment amid broader IT sector pressure. Dive deeper
NCC fell nearly 10% intraday before closing flat after its subsidiary O B Infrastructure was debarred from NHAI tenders for two years from Feb 17. The company said existing projects and the order book remain unaffected, though the loss of future opportunities can’t be quantified. Dive deeper
MCX and NSE will withdraw additional margins on gold and silver futures from Feb 19. MCX is removing the extra 3% margin on gold and 7% on silver, easing trading requirements in precious metals contracts. Dive deeper
Waaree Energies will set up an integrated lithium-ion battery gigafactory in Andhra Pradesh with an investment of over ₹8,000 crore. The project is expected to create around 3,000 direct jobs and boost India’s domestic energy storage manufacturing. Dive deeper
Pernod Ricard is exploring a potential listing of its Indian subsidiary amid early-stage discussions with advisers, as India delivered 6% organic sales growth in FY25, contrasting with weaker demand in the US and China. Dive deeper
Dr Reddy’s Laboratories has acquired Indian trademarks and related assets for two hormone replacement therapy drugs, Progynova® and Cyclo-Progynova®, from the UK. Dive deeper
What’s happening globally
WTI crude futures rose to around $66 per barrel, marking their strongest gain since late October, amid escalating concerns over a potential US-Iran conflict and uncertainty around nuclear deal negotiations. Dive deeper
Silver rose to around $79 per ounce, extending gains as geopolitical tensions and a rebound in the broader metals complex supported prices despite a stronger dollar and hawkish signals from the Federal Reserve. Dive deeper
Minutes of the January 2026 FOMC meeting showed policymakers divided on the rate path, with some favouring further cuts if disinflation continues, while others supported holding rates steady or even considering hikes if inflation remains persistent. Dive deeper
The dollar index hovered near 97.7 after a sharp rise, supported by strong US economic data and hawkish signals from the Federal Reserve, with policymakers divided on the rate path and keeping the option of hikes open if inflation persists. Dive deeper
Switzerland’s trade surplus widened to CHF 3.6 billion in January from a revised CHF 2.9 billion in December, as exports rose 2.3% month-on-month, led by chemicals and pharmaceuticals, while imports declined 0.9%. Dive deeper
Japan’s Nikkei 225 rose 0.57%, and the Topix gained 1.18%, tracking a rebound in US technology stocks and supported by a weaker yen that improved the outlook for exporters. Dive deeper
Saudi Arabia's state-backed AI firm Humain invested $3 billion in Elon Musk's xAI, becoming a significant minority shareholder in the artificial intelligence startup. Dive deeper
Management chatter
In this section, we highlight interesting comments made by the management of major companies and policymakers from the Indian and Global Economies.
Dario Amodei, CEO of Anthropic, on AI’s growth trajectory and India’s role in it:
“We’re increasingly close to what I’ve called a country of geniuses in a data centre — a set of AI agents more capable than most humans at most things, coordinating at superhuman speed.”
“India has an absolutely central role to play in these questions and challenges, both on the side of the opportunities and on the side of the risks.”- Link
G. Kishan Reddy, Union Minister of Mines & Coal, on rare-earth magnets:
“Some countries have monopolized them” — referring to rare-earth permanent magnets and the need for India to boost self-reliance in critical minerals.
He said India aims to begin domestic production of rare-earth permanent magnets by year-end through collaboration with the private sector.
He emphasized this move is part of a broader effort to reduce dependency on imports and strengthen India’s position in the global mineral supply chain. - Link
Jeet Adani, Executive Director, Adani Group on AI:
“AI will redefine sovereignty and position India at the centre of a new technological era.”
“It’s crucial that India builds its own sovereign AI infrastructure to safeguard national sovereignty and reduce reliance on imported technology.”
“AI is poised to fundamentally alter global power dynamics, making homegrown capabilities essential for long-term resilience.” - Link
🧑🏻💻Have you checked out The Chatter?
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Calendars
In the coming days, we have the following significant events and corporate actions:
That’s it from us for today. We’d love to hear your feedback in the comments, and feel free to share this with your friends to spread the word!
This report is undoubtedly very helpful to have a daily quick wrap of the markets. But it could be more helpful if you could highlight what events caused the movements in the market.
If you could highlight (colour)the major Event and international event on the calendar it would be greatful.....and Indian event separately it would be greatful