Nifty holds above 25,550 after recovery push; Broader markets lag

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.

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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.

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Market Overview

Nifty opened with a 47-point gap-down at 25,407 but quickly reversed early weakness, slipping briefly toward the 25,380 zone before staging a sharp rebound in the opening hour. The index steadily moved higher through the morning session, reclaiming 25,500 and extending gains toward the 25,580–25,600 range by 11 AM.

In the second half, Nifty, after making the day’s highs around 25,650, turned volatile, witnessing a mild pullback around 1 PM toward the 25,540–25,550 zone. The index recovered again and tested the 25,630–25,650 levels by 2:45-3 PM. However, a cool-down in the final 30 minutes trimmed gains, and Nifty eventually closed at 25,571.25, ending marginally higher after a session marked by recovery from early weakness and range-bound consolidation in the latter half.

Looking ahead, markets are likely to remain sensitive to global risk appetite and key domestic cues.

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Broader Market Performance:

The broader market had a mixed session today. Of the 3,251 stocks that traded on the NSE, 1,514 advanced, 1,630 declined, and 107 remained unchanged.

Sectoral Performance:

Nifty PSU Bank was the top gainer today, rising 1.68%, while Nifty IT was the top loser, down 0.98%. Overall, 10 sectors closed in green, and 2 sectors ended in red.

Here’s the trend of FII-DII activity from the last 5 days:

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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 26,000, followed by 25,800 & 25,700, indicating potential resistance at the 25,700 -25,800 levels.

• The maximum Put Open Interest (OI) is observed at 25,500, followed by 25,400, suggesting support at 25,500-25,400.

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

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What’s happening in India

India’s private sector activity strengthened in February, with the HSBC Flash Composite PMI rising to 59.3 from 58.4. Growth was led by strong goods demand, robust domestic orders, and a pickup in international sales. Dive deeper

Qualcomm announced a partnership with Tata Electronics at the India AI Impact Summit 2026 to manufacture automotive modules in India. The collaboration will focus on producing system-in-package (SiP) automotive modules at Tata Electronics' upcoming Assam facility. Dive deeper

Shares of state-run oil marketing companies fell as a sharp rise in global crude prices raised concerns over margin pressures. Higher input costs are expected to weigh on refiners and fuel retailers. Dive deeper

Indian IT stocks extended losses, tracking weak Wall Street cues after soft Q4 results from EPAM Systems and cautious tech guidance. Demand uncertainty and AI-driven disruption concerns added to the selloff. Dive deeper

UPL approved a group reorganisation to create a separately listed pure-play crop protection platform under UPL Global. The move will result in two listed entities—UPL as a diversified agri-chem platform and UPL Global, focused on crop protection. Dive deeper

France’s Soufflet Malt will invest €100 million in a new malt facility in Rajasthan to tap rising beer demand. The plant will produce 110,000 tonnes annually by 2028, with scope to double capacity later. Dive deeper

India joined the US-led Pax Silica initiative, expanding cooperation in AI, semiconductors, and critical supply chains. The agreement was signed at the India AI Impact Summit 2026. Dive deeper

Texmaco Rail and RVNL signed a joint venture to boost rail manufacturing and infrastructure. The partnership will focus on advanced rolling stock, maintenance, and large-scale EPC projects in India and abroad. Dive deeper

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What’s happening globally

WTI hovered near $66 and Brent above $71, marking a six-month high and a 5% weekly gain after President Trump set a 10–15 day deadline for Iran nuclear talks. Heightened US military presence in the Middle East kept supply disruption fears elevated. Dive deeper

Germany’s HCOB Manufacturing PMI rose to 50.7 in February, returning to expansion for the first time since June 2022. Output and new orders strengthened, with export demand driving the fastest growth in nearly four years. Dive deeper

UK retail sales jumped 1.8% month-on-month in January, far above forecasts and the strongest rise since May 2024. Rate cuts and easing inflation supported consumer confidence and spending. Dive deeper

Indonesia and the US signed a revised trade pact setting a 19% tariff on Indonesian exports, lower than the proposed 32%. Key goods like coffee and rubber gain tariff-free access, while textiles will benefit under a quota system. Dive deeper

Japan’s Manufacturing PMI climbed to 52.8 in February, its strongest reading since May 2022. Robust domestic and export demand pushed new export orders to an eight-year high. Dive deeper

Japan’s annual inflation cooled to 1.5% in January, the lowest since March 2022, as food and transport price pressures eased. Energy prices remained negative, reflecting continued subsidy support. Dive deeper

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Management chatter

In this section, we highlight interesting comments made by the management of major companies and policymakers from the Indian and Global Economies.

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Sundar Pichai, CEO of Google, on India’s role in the future of AI:

"We are on the cusp of an era of hyper progress and new discoveries. The best outcomes are not guaranteed. We must work together to ensure the benefits of AI are available to everyone and everywhere."

"I believe India is going to have an extraordinary trajectory with AI, and we are supporting with full-stack commitment, including products, skilling, and infrastructure." - Link

Natarajan Chandrasekaran, Chairman of Tata Group, on India’s inflection point in AI:

“The job at hand for us is to get everyone excited and get everyone ready for AI, irrespective of whether they are blue-collar or white-collar workers.”

“Sometimes we can’t do the small stuff, but we can pull off big transformations,” he said. “That’s the beauty of this country.”

“We do more than 50 per cent of the digital payments of the world. This country has a unique ability to pull off big transformations.” - Link

Minister of State for Skill Development and Entrepreneurship Jayant Chaudhary on India’s potential in AI:

“India currently provides compute access at around Rs 65 per hour, significantly lower than what individuals might pay for everyday services such as a cinema ticket.

India has “a lot of catching up to do” in the AI race, but the country may benefit from a second-mover advantage.” - Link

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🧑🏻‍💻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.

So, we’re now on Reddit!

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So, do join us on the subreddit, chat all things markets and finance, tell us what you like about our content, and where we can improve! Here’s the link — alternatively, you can search r/marketsbyzerodha on Reddit.

See you there!

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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!