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Informist, Friday, May 30, 2025

By Anshul Choudhary

MUMBAI – Options data suggest the Nifty 50 is likely to see a minor fall next week, but analysts said any fall is expected to see buying from investors. Traders have sold call options across the board after Friday's fall and bought put options, indicating expectations of profit booking next week.

The Nifty 50 has not seen any sharp moves in the last two weeks, moving in a narrow range of 24500-25000 points. Friday, the Nifty 50 closed at 24750.70 points, down 0.3%. 

High stock valuations have been a concern after major indices saw sharp gains in the past few months. The Nifty 50 has risen nearly 14% from its 52-week low just two months ago. The earnings growth has also not picked up significantly in the March quarter. Growth in the cumulative net profit of Nifty 50 companies, excluding exceptional items, remained in single digits at 6% in the March quarter, an analysis by Informist shows.

While slow earnings growth is a concern, the hope of better growth in the coming quarters is helping the market maintain gains. For next week, the Nifty 50 is seen falling to 24400-24500 points on profit booking before bouncing back. While traders largely bought put options Friday, significant open interest was seen at 24400 puts.

"Basis options we believe support is seen at 24470 - maintain positive stance above the same. Only a close below the same opens the possibility of downside risk," Sahaj Agarwal, head of derivatives at Kotak Securities, said.

On the higher side, the Nifty is likely to face selling pressure due to high valuations. Traders sold call options across the board, with the highest open interest addition at 25500 strike prices, followed by 24800 strike prices. Analysts expect the Nifty 50 to face resistance at 24800-25000 points next week.

Futures data show traders added short positions in June futures contracts of the Nifty 50. The June contract closed at a premium of 101.30 points to the spot index. Open interest in the contract rose over 5% to over 13 million, according to provisional data. 

--Nifty 50 Jun closed at 24852.00, down 90.80 points; 101.30-point premium to the spot index

--Nifty 50 Jul closed at 24990.00, down 94.30 points; 239.30-point premium to the spot index

--Nifty 50 Aug closed at 25118.00, down 128.90 points; 367.30-point premium to the spot index

Eternal, BSE, State Bank of India, HDFC Bank, Reliance Industries, Bharti Airtel, Bajaj Auto, ICICI Bank, Muthoot Finance, Manappuram Finance, Punjab National Bank, FSN E-Commerce Ventures, Infosys, Kotak Mahindra Bank, Canara Bank, Axis Bank, and Hindustan Aeronautics were the most active underlying stocks Friday.  End

Edited by Saji George Titus

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