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Informist, Monday, Sept. 1, 2025

By Akash Mandal

MUMBAI – Despite strong gains on Monday, data shows limited upside for Nifty 50, with heavy open interest addition at the 24650-24800 call strike prices. However, the highest open interest concentration remains at the 25000 strike price, indicating that the 50-stock index might rise to that level once past the 24650-24800 levels.

Persistent weakness in the Nifty Bank index may also keep Nifty 50's upside capped. Banking stocks have the heaviest weightage in the 50-stock index. "We have seen significant build-up of short positions in the banking index, which is proving to be of concern in this segment and ongoing weakness could persist till key hurdles are not surpassed decisively," Motilal Oswal Wealth Management said in a report. "Nifty Bank has to now hold 54000 zones for strength to regain and move up towards 55000 zones while support levels have shifted lower to around 52500," the brokerage firm said. Monday, the Nifty Financial Services index, which includes banking stocks, closed 0.7% higher at 25743.50 points.

The Nifty 50 closed the session higher by nearly 200 points or 0.8% at 24625.05 points. There was short covering across both call and put strike prices, which buoyed the market and helped snap a three-session losing run. Better-than-expected GDP data for the June quarter, encouraging automobile sales growth in August, and hopes of further rate cuts by the Reserve Bank of India are likely to keep supporting the market.

There was selling across the board on the put side, with the maximum open interest addition across the 24500-24600 strikes. These strike prices also now have the highest open interest concentration, compared to the 24000 strike price earlier. This implies that traders see a lower downside risk for the 50-stock index in the near term, with 24500 likely to act as a strong support. "The index has witnessed a recovery from negativity as the Nifty reversed momentum following an inverted hammer pattern...however, sentiment remains 'sell on rise' as long as the index stays below 24850. Only a decisive move beyond 24850 might induce a rally towards 25250/25500," said Rupak De, senior technical analyst at LKP Securities.

--Nifty 50 Sept closed at 24759.00, up 190.50 points; 133.95-point premium to the spot index

--Nifty 50 Oct closed at 24881.70, up 197.40 points; 256.65-point premium to the spot index

--Nifty 50 Nov closed at 24995.00, up 184.10 points; 369.95-point premium to the spot index

Reliance Industries, HDFC Bank, Dixon Technologies (India), Eternal, Mahindra & Mahindra, Maruti Suzuki India, InterGlobe Aviation, BSE, Multi Commodity Exchange of India, ICICI Bank, Infosys, Bajaj Auto, Tata Motors, CG Power Industrial Solutions, and RBL Bank were the most active underlying stocks Monday.  End

Edited by Nishant Maher

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