More Stories

Informist, Friday, Aug. 22, 2025

By Akash Mandal

MUMBAI – The Nifty 50 options data show the index is likely to reclaim the psychologically important level of 25000 points next week after Friday's sharp fall. Analysts said the fall was a temporary pullback from the rise seen in recent sessions. Despite the fall, traders bought deep out-of-the-money call contracts, implying that the Nifty 50 is expected to rise to higher levels.

"The week ended on a mixed note, as Nifty (50) failed to cross the golden retracement at 25150 (61.8% retracement of the fall from 25700), triggering profit booking," Rajesh Bhosale, equity technical analyst at Angel One, said in a note. From a technical standpoint, Friday's correction looks more like a retest of the bullish gap, Bhosale said. The 24750-24650 levels are expected to act as a crucial support for the 50-stock index, while a move above 25000 points and then towards 25150 points would be key for the bulls to regain control, he added.

The benchmark indices snapped a six-day winning run and closed sharply lower Friday on profit-taking by investors and caution ahead of US Federal Reserve Chair Jerome Powell's address at the Jackson Hole Economic Policy Symposium. Investors will focus on Powell's comments about the interest rate trajectory in the US, inflation, and economic growth. The Nifty 50 and the BSE Sensex both ended 0.9% lower Friday at 24870.10 points and 81306.85 points, respectively.

On the call side of the Nifty 50, the maximum addition of open interest was seen across the 24900-25200 strike prices. This implies that the Nifty 50 is poised to gain further if it crosses the 25000-point and 25200-point levels. The highest open interest concentration was at 25000 and 26000 strike prices.

Meanwhile, traders exited some of their long positions, which is likely to have weighed on the Nifty 50's spot level Friday. They exited some of their positions in the August futures contract, with open interest in this series falling 0.3% to 14.96 million.

The Indian economy is likely to run into geopolitical turbulence in the near term and the optimsm about the proposed rationalisation of the goods and services tax rate slabs is unlikely to provide much relief in terms of earnings growth, experts said. A favourable India-US trade deal looks unlikely in the near term as India is unwilling to open up its market to US dairy and agricultural produce. This is likely to result in export challenges in sectors such as textiles, polished gems, and engineering goods, broking firm Prabhudas Lilladher said in its strategy report. The brokerage also does not see domestic demand being sustained beyond the upcoming festival season or the proposed GST reforms driving demand significantly.

On the put side, the maximum open interest concentration was at the 24000 strike price, implying the possibility of a sharp fall if there are any major negative shocks. There was also significant addition of open interest at the 23800 strike price.

--Nifty 50 Aug closed at 24890.00, down 232.50 points; 19.90-point premium to the spot index

--Nifty 50 Sept closed at 25037.00, down 223.30 points; 166.90-point premium to the spot index

--Nifty 50 Oct closed at 25168.60, down 217.70 points; 298.50-point premium to the spot index

HDFC Bank, ICICI Bank, Axis Bank, Reliance Industries, Eternal, Infosys, Bharti Airtel, Bajaj Finance, Hero MotoCorp, Tata Consultancy Services, Mahindra & Mahindra, State Bank of India, Larsen & Toubro, Kotak Mahindra Bank, and Vodafone Idea were the most active underlying stocks Friday.  End

Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.