The focus will be on macro indicators and global sentiment, analysts said, as the second quarter earnings season draws to a close.
The risky mood sets a cautious tone for the Indian market, with global volatility likely to dictate early trading dynamics, analysts said.
“The risk-off mood sets a cautious tone for Indian markets today, with global volatility likely to dictate early trading dynamics. Given that today marks the weekly Friday close, the market is expected to trade within a consolidation range. Global weakness may keep the upside in check, and selective profit booking cannot be ruled out. However, despite the short-term caution, the broader trend for India remains constructive, with underlying sentiment still supportive of absorbing dips,” it said. Ponmudi R, CEO of Enrich Money.
Stocks in the Asia-Pacific region have fallen sharply. The Nikkei is trading 2 percent lower, while Korean markets are down 3 percent in Friday’s early deal, following sharp weakness in the U.S. market.
Meanwhile, the growth of the Index of Eight Core Industries was zero percent in October 2025, compared to 3.8 percent in October last year and 3 percent in September this year. October’s performance is the worst since August last year, when the index shrank 1.5 percent. The eight core industries – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity – together account for 40.27 percent of the Index of Industrial Production (IIP).
“Given the deterioration in the performance of the mining and power segments, ICRA expects IIP growth to decelerate somewhat from 4.0% in September 2025 to ~2.5-3.5% in October 2025, even as manufacturing growth is likely to remain healthy, aided by higher demand during the festive season due to the rationalization of GST rates and consequent restocking.” Aditi Nayar, Chief Economist, ICRA Ltd.
Derivatives trading signals a cautious tone.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, the derivatives landscape continues to reflect a constructive undertone and strong optimism. “Call writers have been consistently shifting their positions to higher strike prices, while put writers are building substantial open interest at strikes nearby – indicating a clear bullish phase. Significant open interest build-up of nearly 1.17 crore contracts at the 26,500 call strike highlights its importance as a key resistance ceiling. Meanwhile, heavily placed OI – contracts of around 1.54 crore – at the 26,000 strike reaffirms strong support at lower levels,” he added.
Simultaneous aggressive additions to put writing, along with unwinding and upward rollovers by call writers, underscore solid bullish positioning and a persistent positive bias. “The Put-Call Ratio (PCR) has risen sharply from 1.33 to 1.50, reflecting increased optimism, although it also indicates slightly overheated sentiment where small profit-taking cannot be ruled out,” he further said.
Published on November 21, 2025
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