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Informist, Monday, May 19, 2025

By Anshul Choudhary

MUMBAI – Options data shows the Nifty 50 is likely to face selling pressure above 25000 points this week. While indices may fall more after the sharp gains last week, analysts expect the decline to be limited, owing to positive sentiment due to continuous buying from foreign investors and the possibility of further rate cuts in India.

The Nifty 50 had risen over 4% last week after the US and China agreed to lower retaliatory tariffs against each other. The Nifty 50 last week also crossed 25000 points after seven months, rising almost 15% from its 52-week low in just over a month. This sharp rise has raised concerns that the Nifty 50 may see some profit booking as valuations have become expensive.

Monday, the Nifty 50 was down for the second consecutive session and closed at 24945.45 points, down 0.3% from Friday. Global uncertainty due to tariffs is seen as a big risk for Indian companies, especially those which earn export revenue, such as information technology.

Traders sold call options across the board in anticipation of profit booking in the coming days. For call options expiring this week, the highest open interest addition was seen at 25000 strike prices, followed by 25200 strike prices. These levels are likely to act as resistance for the Nifty 50 in the near term.

Traders bought in-the-money and at-the-money put options as the Nifty 50 fell below 25000 intraday, indicating expectations of further fall in the market. The highest open interest on the put side was at 24200 strike prices, followed by 24900 strike prices. Analysts expect the Nifty 50 to find support at 24900-24800 points. Any fall in the market is likely to be limited, with traders also selling out-of-the-money put options.

The May futures contract of the Nifty 50 closed at a premium of 19.50 points to the spot index. Open interest in the contract rose slightly to nearly 12 million, according to provisional data.

--Nifty 50 May closed at 24965.00, down 113.70 points; 19.55-point premium to the spot index

--Nifty 50 Jun closed at 25083.00, down 108.60 points; 137.55-point premium to the spot index

--Nifty 50 Jul closed at 25221.00, down 108.70 points; 275.55-point premium to the spot index

Hindustan Aeronautics, Bharat Electronics, Divi's Laboratories, Central Depository Services, Infosys, Reliance Industries, State Bank of India, Bharti Airtel, Bajaj Auto, Vodafone Idea, Delhivery, HDFC Bank, and BSE were the most active underlying stocks Monday.  End

Edited by Saji George Titus

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