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, we test a popular options strategy on NIFTY: selling a straddle or strangle 45 days before expiry.
Using over seven years of data, we compare 45 DTE straddles with 30 and 16 delta strangles, and then see what happens when we add a VIX filter. The results show why collecting more premium can matter, and how higher volatility can change the performance of the strategy.
But the backtest also highlights the risks, especially gap risk, drawdowns, and the danger of using too much leverage. So, how does the 45 DTE strategy actually hold up in India? Let’s look at the data.
Markets Today
Nifty opened with a 43-point gap down at 24,176, tracking lacklustre global cues and continued weakness in domestic sentiment. The index remained under pressure through the opening hour, slipping below 24,150 and eventually towards the 24,120–24,130 zone around 10:20 AM.
A modest recovery followed, taking Nifty back towards 24,155–24,160, but the rebound lacked momentum, and the index spent much of the remainder of the first half moving in a narrow 24,140–24,160 range. Around noon, Nifty briefly recovered towards 24,180, before giving up some of those gains and ending the first half near 24,160.
The second half initially remained weak and choppy, with the index again slipping towards 24,125 around 1:30 PM. However, the trend changed decisively after 2 PM as buying picked up steadily, encouraged by a 3% dip in oil prices, pushing Nifty above 24,200 by around 2:30 PM and then towards 24,250 in the final hour. The rally strengthened into the close, with a sharp move during the closing auction lifting the index further to 24,334.55, near the day’s high and over 150 points above its opening level.
Sectoral Indices Performance
Winners & Losers
Commodities
FII / DII Flows
Here’s the trend of FII-DII activity from the last 5 days:
Thematic Indices
Tijori’s niche indices, where today’s move sorts pockets of the market beyond standard sector baskets. You can also track promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 1st September:
The maximum Call Open Interest (OI) is observed at 24,500, followed by 24,800 & 24,500, indicating potential resistance at the 24,500- 24,600 levels.
The maximum Put Open Interest (OI) is observed at 24,200, followed by 24,300, suggesting support at 24,200-24,100.
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
Top Stories in India
TCS will acquire Porsche’s consulting and technology subsidiary MHP for $373 million, alongside a five-year strategic partnership worth $1.4 billion. The partnership will focus on AI-led transformation across Porsche’s engineering, manufacturing and operations, as well as next-generation automotive technology. Dive deeper
Federal Bank shares fell nearly 4% intraday after reports that the lender was in advanced talks to acquire a controlling stake in Jana Small Finance Bank. The reported deal would involve buying promoter Jana Holdings’ 16.9% stake followed by an open offer, although Federal Bank later clarified that there was no material event requiring disclosure. Dive deeper
The central government has proposed a complete ban on carbosulfan, a widely used insecticide, citing toxicity risks to humans, animals and the environment and the absence of a specific antidote. An expert panel recommended prohibiting its manufacture, import, transport, distribution, sale and use, which could affect pest management across crops including rice, cotton, chilli, brinjal and cumin. Dive deeper
Hyundai Motor India has partnered with Jio-bp to integrate their EV charging networks, expanding access to over 37,000 charging points across India through the myHyundai app. The partnership adds more than 7,000 Jio-bp charging points across 300+ cities, improving charging accessibility for EV users. Dive deeper
VA Tech WABAG has formally signed its mega desalination project in Kuwait, marking the company’s first project in the country. The 60 MIGD (around 272 MLD) seawater desalination plant will be executed on a design-build-operate basis and further strengthens WABAG’s presence across the GCC region. Dive deeper
Larsen & Toubro has secured a mega order worth ₹5,000–10,000 crore to develop three battery energy storage system (BESS) projects in West Asia. The order strengthens L&T’s presence in the region’s rapidly expanding renewable energy and energy-storage market. Dive deeper
Commerce & Industry Minister Piyush Goyal said India will ease BIS certification requirements for high-tech companies, including semiconductor and AI firms, to reduce regulatory hurdles and boost manufacturing investment. Dive deeper
Top Stories Globally
Brent crude fell 3% to around $89.5 per barrel, extending the previous session’s 2.4% decline, as signs of diplomatic progress between Iran and the U.S. eased supply concerns. Pakistan reported progress after its army chief visited Tehran, while the latest U.S. sanctions on Iran were less severe than markets had expected, further reducing immediate fears of oil supply disruptions. Dive deeper
Bitcoin rose above $80,000 to a three-month high, supported by a weaker U.S. dollar following the Treasury’s expanded bond buybacks and optimism over clearer U.S. crypto regulation. Bitcoin has gained 16% since Trump called for Congress to pass crypto legislation last week. Dive deeper
Japan-Korea LNG prices climbed above $23/MMBtu, their highest since January 2023, as extreme heat boosted power demand across Asia while Middle East disruptions tightened LNG supplies. Japan’s unusually hot weather is increasing demand for gas-fired electricity, adding further pressure to an already tight regional LNG market. Dive deeper
Zinc prices climbed above $3,830 per tonne, their highest since May 2022, as mine disruptions and logistical constraints tightened global supplies. Falling inventories outside China and expectations of weaker global mine output have added to concerns over limited zinc availability. Dive deeper
Management Chatter
In this section, we highlight interesting comments from management at major companies and from policymakers in the Indian and Global Economies.
Billionaire investor Stanley Druckenmiller said the U.S. is eroding the Treasury market's credibility:
“You can’t buy your way out of a solvency conversation with liquidity tools,”
“What should happen instead is straightforward. Return buybacks to their stated purpose: small, scheduled...If the 30-year must trade at 5.5% to clear, that isn’t a crisis. It is an invoice. Then do the only thing that durably lowers long-term yields: address the primary deficit.” - Link
Corporate Actions & Events
Corporate Actions
Published by Zerodha. Not investment advice. Data from NSE, BSE, and MCX.
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