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Informist, Thursday, Aug. 21, 2025

 

By Akash Mandal

 

MUMBAI – The Nifty 50 is likely to continue its upward trajectory next week, supported by further short covering and continued optimism about the government's proposed GST reforms. While there might be a slight pullback midway through the next week, the overall trend for the short term remains positive, analysts said.

 

"While the overall undertone remains positive, the market showed some tentativeness near this key retracement, with broader indices remaining relatively subdued compared to performance seen from the last week," Rajesh Bhosale, equity technical analyst at Angel One, said in a note. Traders are advised to maintain a positive bias and use dips to buy, while a sustained move above the 25200 level could pave the way for further upside toward 25350 and 25500 levels, setting the tone for the concluding week of August, Bhosale said.

 

Foreign investors remain oversold in index futures and have continued selling in the cash market, too. FIIs have already offloaded $1.75 billion worth of shares so far in August, having net sold equities worth $649.03 million of shares in corresponding period a month ago. The long-short ratio of FIIs was largely unchanged at around 15% Wednesday, a derivatives analyst at a domestic brokerage said.

 

While there was selling across more strikes on the call side of the Nifty 50, the highest open interest addition was at the 26000, 25600, and 25500 strike prices expiring next week, indicating the Nifty 50 will likely move towards these levels next week. Analysts said the 50-stock index is expected to rise to the 26000 levels shortly if it crosses above 25500 points. 

 

On Thursday, the Nifty 50 closed 33 points higher at 25083.75 points, extending its winning run for the sixth straight session. However, traders exited some long positions at deep out-of-the-money call strikes to rebalance their positions ahead on the weekly expiry of the Nifty 50's options contracts Thursday. 

 

On the put side, traders sold across strike prices, with the highest open interest addition at the 25100, 25000, and 24800 strike prices. The highest open interest concentration was at the 25000 strike price, with analysts pegging the level as a strong support for the Nifty 50 next week. 

 

--Nifty 50 Aug closed at 25110.40, up 27.10 points; 26.65-point premium to the spot index

--Nifty 50 Sept closed at 25255.00, up 28.40 points; 171.25-point premium to the spot index

--Nifty 50 Oct closed at 25378.00, up 32.20 points; 294.25-point premium to the spot index

 

BSE, Reliance Industries, Eternal, HDFC Bank, ICICI Bank, Tata Consultancy Services, Infosys, Angel One, Interglobe Aviation, Bharti Airtel, Axis Bank, State Bank of India, Hindustan Aeronautics, Maruti Suzuki India, and Tata Motors were the most active underlying stocks Thursday.  End

 

Edited by Akul Nishant Akhoury

 

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