Indian Stock Market Extends Rally for Third Straight Session
The Indian stock market continued its upward trajectory on Tuesday, marking the third consecutive session of gains. The benchmark indices showed strong performance, with the Sensex climbing above the 84,300 level and the Nifty 50 hovering near the significant 26,000 mark.
Benchmark Indices Show Significant Gains
The Sensex surged by 380.13 points, representing a gain of 0.45%, to close at 84,445.88. Simultaneously, the Nifty 50 index advanced by 113.75 points, or 0.44%, reaching 25,981.05. The Bank Nifty index also contributed to the positive momentum, rising 79.70 points, or 0.13%, to settle at 60,749.05.
Top Performers and Underperformers
Among the Nifty 50 constituents, several stocks stood out as top gainers. Tata Steel, Bajaj Auto, Mahindra & Mahindra (M&M), and Maruti Suzuki India led the charge with substantial increases. On the other hand, Bajaj Finance, Shriram Finance, Dr Reddy’s Laboratories, Asian Paints, and HCL Technologies were among the top index losers during the session.
Previous Session Performance
In the preceding trading session, the Nifty 50 index had already demonstrated robust growth, rallying 173.60 points, or 0.68%, to close at 25,867.30. This movement formed a Doji candle pattern, which often indicates market indecision and potential trend reversals.
Nifty Options Analysis and Strategy
In the options segment, key resistance and support levels were identified based on open interest data. According to Axis Securities, the highest Nifty Open Interest (OI) on the Call side was at the 26,000 strike, followed by 25,800, marking significant resistance levels. On the Put side, maximum open interest was observed at 25,600, followed by 25,800, indicating strong support zones.
The premium for the At-the-Money option was reported at ₹329, suggesting a likely trading range for the week between 24,600 and 25,500. This analysis provides traders with valuable insights into potential market movements.
Recommended Options Strategy for 17 February 2026 Expiry
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 17 February 2026, reflecting a moderately bullish outlook on the market. This strategy involves:
- Buying a call option with a strike price slightly lower than the current market price of the Nifty 50.
- Simultaneously selling another call option with a higher strike price (out-of-the-money).
- Both options share the same expiration date.
This approach is typically employed when the market view is moderately bullish, allowing traders to capitalize on upward movements while managing risk.
Strategy Details and Risk-Reward Analysis
The specific strategy outlined by Axis Securities includes:
- Buy 1 lot of Nifty 25,900 Call at ₹145 - ₹165.
- Sell 1 lot of Nifty 26,200 Call at ₹45 – ₹55.
The break-even point for this strategy is calculated at 26,002. According to the brokerage firm, the maximum potential risk for this Nifty options trading strategy is ₹6,630, while the potential maximum gain is ₹12,870.
Traders are advised to consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward. Axis Securities emphasized the importance of entering and exiting all legs of the strategy together and squaring off the position before the expiry session closes.
Disclaimer: The views and recommendations presented above are those of individual analysts or broking companies and do not represent the stance of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
