More Stories

Informist, Wednesday, Sept. 17, 2025

 

By Akash Mandal

 

MUMBAI – The Nifty 50 is likely to test the 25500 levels in the near term, but the rise is likely to be gradual rather than a sharp one, derivatives analysts said. A weaker dollar, some progress in trade talks between the US and India, and hope of a trade deal between India and the European Union are likely to keep the near-term outlook positive for the domestic market. The focus will also be on the US Federal Reserve's interest rate decision, due later in the day, with the apex bank expected to cut key rate by 25 basis points.

 

On Wednesday, the Nifty 50 closed 0.4%, or 91.15 points, higher at 25330.25 points as traders covered some of their short positions. "Market sentiment has improved significantly, with the panic index slipping by 10 during the day, reflecting growing investor confidence," Rupak De, senior technical analyst at LKP Securities, said in a note.

 

The volatility index, India VIX, ended 0.2% lower at 10.2475. Going forward, the market trend is likely to remain positive as long as the Nifty 50 holds above the 21-day exponential moving average, which is currently just above 24900 points, De said.

 

On the call side, the maximum open interest addition was between 25300 and 26500 strikes. The maximum open interest concentration was at the 26000 strike, followed by the 25500, 26500, and 25400 contracts. This implies that the Nifty 50 likely has room for more upside in the near term. Traders have significantly reduced their short positions over the past few sessions and are likely to cover more short positions in the coming sessions, derivative analysts said.

 

On Tuesday, the put-call ratio in the Nifty 50's derivatives chain was 1.29, compared to the 1.08 a session ago. Till last week, foreign institutional investors had net short positions of $3.67 billion in index futures, Nuvama Institutional Equities said in its report. Several analysts had last week said that foreign investors would cut their short positions if the market rises.

 

Traders sold put options across strikes, an indication that the market trend is expected to remain positive. The highest open interest addition was at the 25300 strike, followed by the 25250 strike. The maximum open interest concentration was at the 25300-25200 put strikes, with these levels expected to act as strong support zone for the Nifty 50. 

 

--Nifty 50 September closed at 25422.00, up 90.60 points; 91.75-point premium to the spot index

--Nifty 50 October closed at 25545.00, up 95.40 points; 214.75-point premium to the spot index

--Nifty 50 November closed at 25668.00, up 99.10 points; 337.75-point premium to the spot index

 

State Bank of India, HDFC Bank, Vedanta, Multi Commodity Exchange of India, Bharat Electronics, Maruti Suzuki India, Reliance Industries, Kotak Mahindra Bank, ICICI Bank, Tata Motors, Punjab National Bank, Infosys, Tata Consultancy Services, Canara Bank, and Hindustan Aeronautics were the most active underlying stocks Wednesday.  End

 

Edited by Deepshikha Bhardwaj

 

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.