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Informist, Monday, Oct. 27, 2025

 

By Anshul Choudhary

 

MUMBAI – Traders continued to cut their short positions in the Nifty 50 as trade tensions between the US and China eased. Further, sentiment in the market has been positive after initial numbers suggested demand during the festival session was strong, which is a positive for earnings growth ahead. Foreign investors have already cut their short positions over the past two weeks and the trend likely continued Monday, derivatives data showed.

 

Foreign institutional investors cut their short positions by $1.5 billion over the past two weeks till Friday, according to data from Nuvama Wealth Management. Monday, open interest fell across in-the-money call options and premiums rose, indicating short-covering amid positive global cues.

 

Reports Sunday said the US and China have reached a framework for a deal, which will prevent the US from imposing more tariffs on China and defer Beijing's controls on rare-earth exports. The Nifty 50 ended at 25966.05 points, up 0.7% from Friday.

On the call side, short-covering was observed across at-the-money and in-the-money contracts, indicating limited downside for the Nifty 50. The options data also suggested the index may not give any major returns in the near term as it has already risen 5.5% so far in October. The highest addition of open interest was at 26050 strike price on the call side.

 

Traders sold put options across in-the-money and at-the-money contracts with the highest addition of open interest at 25900 strike price. This was followed by addition of open interest at 25800-25850 strike prices. Technical analysts said this level may act as immediate support for the index.

 

--Nifty 50 October closed at 26036.70, up 221.90 points; 70.65-point premium to the spot index

--Nifty 50 November closed at 26189.00, up 237.00 points; 222.95-point premium to the spot index

--Nifty 50 December closed at 26360.00, up 229.80 points; 393.95-point premium to the spot index

 

Reliance Industries, HDFC Bank, ICICI Bank, Bharti Airtel, Bajaj Finance, Kotak Mahindra Bank, State Bank of India, Tata Consultancy Services, Infosys, Indus Towers, ITC, Mahindra & Mahindra, Eternal, and Larsen & Toubro were the most actively traded underlying stocks Monday.  End

 

Edited by Rajeev Pai

 

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