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Informist, Friday, Sept. 5, 2025

By Akash Mandal

MUMBAI – Traders did not place any aggressive bets in the options chain of the Nifty 50 as the index moved in a tight range Friday, a trend which is expected to continue at least till the expiry of weekly contracts Tuesday. Premiums across out-of-the-money call and put options expiring Tuesday tumbled, indicating that traders were unsure about the market's direction for the next trading session. Analysts said the market has factored in most of the positives, including the optimism around the latest goods and services tax rationalistion announced this week.

"Actually, a tug-of-war between FIIs and other players is causing the volatility (in the market)...the Nifty 50 will most likely trade sideways in said range (24450-25100 points) with negative bias," Vipin Kumar, assistant vice-president of equity research and senior derivatives analyst at Globe Capital Market, said. The index closed at 24741 points Friday, largely unchanged from the previous closing level. It remained lower for most part of Friday's trading session, but then closed off lows due to some short covering.

Traders added short positions on the call side, with out-of-the-money premiums falling around 50% across strikes expiring next week and open interest rose between 24750 and 26000 contracts. The highest open interest concentration was at the 25000 strike and the maximum addition of open interest was at 25100. On the put side, the 24000-point contract had the highest open interest addition as well as concentration. Premiums on 24700-24000 contracts expiring next week declined 26-40%. 

Bulls were buoyed by the better-than-expected economic growth and potential benifits from the government's GST rationalisation reforms. However, some market participants are concerned about the sustainabilty of India's economic growth and remain watchful about the materisalisation of demand growth due to the tax relaxation.  

--Nifty 50 Sept closed at 24849.60, up 22.10 points; 108.60-point premium to the spot index

--Nifty 50 Oct closed at 24957.40, up 9.60 points; 216.40-point premium to the spot index

--Nifty 50 Nov closed at 25077.40, up 7.60 points; 336.40-point premium to the spot index

Infosys, BSE, Mahindra & Mahindra, Tata Consultancy Services, Vodafone Idea, Reliance Industries, ICICI Bank, HDFC Bank, Eternal, Maruti Suzuki India, ITC, Indus Towers, Tata Motors, Kotak Mahindra Bank, and HCL Technologies were the most active underlying stocks Friday.  End

Edited by Avishek Dutta

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