The Indian stock market extended losses for the third consecutive session on Tuesday, with the benchmark indices falling half a percent each, weighed down by selling in metals, media, realty, financial services, FMCG and banking stocks.
The Sensex was down 390.26 points, or 0.46%, at 85,251.64, while the Nifty 50 traded lower by 119.45 points, or 0.46%, at 26,056.30. Bank Nifty index also fell 199.40 points, or 0.33%, to 59,481.95.
Among the Nifty 50 constituents, Asian Paints, Dr Reddy’s Laboratories, NTPC, Jio Financial Services and Trent were the top gainers, while InterGlobe Aviation, HDFC Life Insurance Company, Bharat Electronics, ICICI Bank and Eternal were the top losers.
On Monday, the Sensex fell 64.77 points, or 0.08%, to close at 85,641.90, while the Nifty 50 settled 27.20 points, or 0.10%, lower at 26,175.75. Nifty 50 index formed a bearish candle on the daily chart, suggesting a pause in the ongoing trend.
Nifty Options Highlights
In the options market, the highest Nifty Open Interest (OI) on the Call side was at the 26,300 strike, followed by 26,500 which could act as resistance levels. On the Put side, the highest Open Interest was at 26,000, followed by 26,100 which may serve as support levels, Axis Securities said.
The premium for the At-the-Money option is ₹280, indicating a likely trading range for the week between 25,900 and 26,500, it added.
Nifty Options Strategy for 9 December 2025 Expiry
Recommended Strategy: Bull Call Spread
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 9 December 2025, forecasting a moderately bullish view.
A bull call spread strategy involves buying a call option with a strike price slightly lower than current market price of the underlying asset, which is Nifty 50, and simultaneously selling another call option with a higher strike price (out-of-the-money), both with the same expiration date. This strategy is applied when the outlook is moderately bullish.
Strategy Details
Buy 1 lot of Nifty 26,200 Call at ₹175 – ₹155
Sell 1 lot of Nifty 26,500 Call at ₹55 – ₹65
The strategy involves buying one lot of the 26,200 strike Call Option and simultaneously selling one lot of the 26,500 strike Call Option.
Risk-Reward Analysis
According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹9,000, whereas the potential maximum reward is ₹13,500.
Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward, said the brokerage firm. It suggested to enter and exit all the legs in strategy together and square-off the strategy before the expiry session closes.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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