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Informist, Monday, May 26, 2025

By Anshul Choudhary

MUMBAI – Options traders added fresh long positions and covered their short positions after the Nifty 50 index managed to stay above its immediate support level and even ended Monday's session near its resistance of 25000 points. The Nifty 50 regaining 25000 points after a short correction last week has led to hope of further gains in the index, analysts said.

"We are seeing long build-up (in options)...expect indices to move higher from here," Nandish Shah, senior derivative analyst at HDFC Securities, said. "Seeing strong put writing at 24800, which will be a strong support." The Nifty 50 had closed just above 24800 points last week. On Monday, it rose nearly 150 points more and closed at 25001.15 points.

For options contracts expiring next week, traders added long positions in out-of-the-money calls and covered their short positions in in-the-money calls. The highest open interest addition was seen at 25000-25100 calls and these levels are likely to act as immediate resistance for the Nifty 50. Shah expects the 50-stock index to show a clear path towards more gains once it crosses the resistance of 25100 points.

Traders sold put options across the board, indicating a hit to bearish sentiment. For puts, significant open interest addition was seen at the 24000-25000 strike prices. Analysts expect the Nifty 50 find support at 24800-24850 points.

The May futures contract of the Nifty 50 Friday closed at a premium of 33.85 points to the spot index. Open interest in the contract rose over 6% to 11.03 million, according to provisional data.

--Nifty 50 May closed at 25035.00, up 155.10 points; 33.85-point premium to the spot index

--Nifty 50 Jun closed at 25123.00, up 150.20 points; 121.85-point premium to the spot index

--Nifty 50 Jul closed at 25251.00, up 146.00 points; 249.85-point premium to the spot index

HDFC Bank, ICICI Bank, Reliance Industries, Eternal, Bajaj Finance, Bharti Airtel, JSW Steel, Infosys, Mahindra & Mahindra, Larsen & Toubro, BSE, Axis Bank, Stata Bank of India, Tata Motors, Bharat Electronics, Hindalco Industries, and Maruti Suzuki were the most active underlying stocks Monday.  End

Edited by Avishek Dutta

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