Mid-day sell-off wipes early gains in Nifty; Broader markets shine
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 an 88-point gap-up at 25,513, tracking strong global cues and early optimism. The index extended gains in the opening hour, climbing steadily toward the 25,600–25,640 zone as buying momentum remained firm. However, the early strength began to fade by late morning, with the index gradually paring gains and consolidating between 25,580 and 25,620.
Around 12:30 PM, selling pressure intensified sharply, dragging Nifty lower from near 25,600 to the 25,470–25,480 zone within15 minutes. The weakness persisted into the early afternoon, with the index slipping further toward the 25,430–25,450 levels. In the final hour, Nifty attempted a modest recovery, moving back toward the 25,470–25,500 range, eventually closing at 25,482.50, well off the day’s highs. The session was marked by a strong start, a sharp midday sell-off, and a range-bound consolidation into the close.
Looking ahead, markets are likely to remain sensitive to global risk appetite, newsflow around AI disruption, and key domestic cues.
Broader Market Performance:
The broader market had a mixed session today. Of the 3,287 stocks that traded on the NSE, 1,700 advanced, 1,479 declined, and 108 remained unchanged.
Sectoral Performance:
Nifty Metal was the top gainer, surging 2.70%, while Nifty PSU Bank was the top loser, slipping 0.39%. Overall, 8 sectors closed in green, and 4 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 2nd March:
The maximum Call Open Interest (OI) is observed at 25,600, followed by 25,700 & 26,000, indicating potential resistance at the 25,600 -25,700 levels.
The maximum Put Open Interest (OI) is observed at 25,500, followed by 25,000, 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
Indian government bonds rose as strong buying from the “others” category, which includes insurers, pension funds and potentially the RBI, fuelled expectations of central bank participation in the market. Dive deeper
The rupee strengthened 6 paise to 90.89 against the US dollar in early trade, supported by a weaker greenback and firm domestic equities. Dive deeper
The BMC presented a ₹80,952.56 crore Budget for FY27, marking an increase from the previous year’s allocation of ₹74,427.41 crore. Dive deeper
Vedanta approved a plan to raise up to ₹3,000 crore through private placement of non-convertible debentures, as part of its broader capital allocation strategy. Dive deeper
Waaree Energies said it does not expect the steep 126% preliminary US import duties on Indian solar products to materially hurt its US order book, as its expanding local manufacturing footprint should mitigate tariff impacts. Dive deeper
Angel One’s 1:10 stock split takes effect tomorrow, increasing the number of shares while reducing the face value, aimed at improving liquidity and accessibility for retail investors. Dive deeper
Vikram Solar secured an order to supply 378.75 MW of N-TOPCon modules for NTPC Green Energy’s 600 MW solar project in Gujarat, with delivery expected within six months. Dive deeper
Coal India’s subsidiary SECL has identified seven mine overburden dumps in Chhattisgarh and Madhya Pradesh for potential rare earth element exploration, with tenders already initiated for scientific assessment. Dive deeper
Dr Reddy’s Laboratories is preparing to launch a generic version of semaglutide in India under the brand name Obeda in March, following the expiry of the drug’s patent protection. Dive deeper
Bharat Electronics secured additional orders worth ₹733 crore for radar systems, communication equipment and related defence solutions, adding to its recent deal wins. Dive deeper
What’s happening globally
Brent crude rose to around $71.1 per barrel as markets assessed supply risks ahead of a new round of US-Iran nuclear talks and potential tensions around the Strait of Hormuz. Dive deeper
Gold rose to around $5,180 per ounce, recovering prior losses amid heightened trade tensions following the rollout of a 10% US tariff and ongoing US-Iran nuclear talks. Dive deeper
The dollar index slipped below 97.8 as President Trump signalled no change to tariff policy following the rollout of a 10% global levy, with markets weighing prospects of further increases. Dive deeper
President Trump used his State of the Union address to highlight economic achievements and describe a “golden age of America,” focusing on inflation, tax cuts and stock market gains ahead of midterm elections. Dive deeper
European equities rose, with the Euro Stoxx 50 hitting a record high, as easing AI-related concerns and optimism around US trade policy supported sentiment. Dive deeper
Japan’s Nikkei 225 surged 2.2% to a record high, tracking a tech-led rebound on Wall Street and optimism ahead of Nvidia’s earnings. Dive deeper
Australia’s annual inflation held at 3.8% in January, above expectations and remaining outside the central bank’s 2–3% target, as higher electricity costs lifted goods inflation. 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.
Poonam Gupta, Deputy Governor, Reserve Bank of India (RBI), on the Indian Economy:
“The Indian economy has become more resilient to both internal and external shocks, helping bring in macroeconomic stability and laying a strong foundation for sustained economic growth.”
“India’s economic structure has improved, contributing to an improving growth trajectory even amid global uncertainties.”
“This increased resilience reflects the strength of India’s fundamentals in facing internal and external challenges.” - Link
Ayon Mukhopadhyay, Senior Vice President & Head of Equity Research, IIFL Capital, on market correction and AI’s impact:
“From May 2024 till early this year, we saw relentless selling due to technical factors… There was a huge exodus of foreign outflows over 18–19 months.”
“We saw decent inflows in early February, but the AI-led selloff affected markets again. Sentiment has turned, but most funds are still marginally underweight on India. It’s a wait-and-watch scenario.”
“top Indian IT companies have astute management and strong balance sheets. They can pivot if needed, making stocks attractive. But we cannot predict exactly where the base will be.” - Link
🧑🏻💻Have you checked out The Chatter?
Every week, we listen to the big Indian earnings calls—Reliance, HDFC Bank, and even smaller logistics firms—and copy the full transcripts. We then remove the fluff and keep only the sentences that could move a share price: a surprise price hike, a cut-back on factory spending, a warning about weak monsoon sales, or a hint from management on RBI liquidity. We add a quick, one-line explainer and a timestamp so you can trace the quote back to the call. The whole thing lands in your inbox as one sharp page of facts you can read in three minutes—no 40-page decks, no jargon, just the hard stuff that matters for your trades and your macro view.
Go check out The Chatter here.
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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!