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Informist, Wednesday, Nov. 12, 2025

 

By Anjana Therese Antony

 

MUMBAI – Even though the Nifty 50 rose sharply Wednesday, derivatives analysts said they don't expect the index to see any significant rise in the near term as stock valuations remain expensive. Premiums on Nifty 50's out-of-the-money call options expiring next week rose while those on puts declined. Foreign investors continue to have heavy short positions in index futures, which indicates their bearish view. This view has also been evident from their selling spree in the cash market for a year now. 

 

On Wednesday, the Nifty closed 0.7% higher at 25875.80 points, extending its winning streak for the third straight session. The near-term resistance for the index is seen at 25950-26000 points and support at 25700-25600 points. However, the index is unlikely to retain its momentum even if it crosses the psychologically important 26000 points, a technical and derivatives analyst at a domestic broking firm said.

 

Premiums on 25900-27000 call strikes increased 15-62% and those on 25800-25000 put contracts declined 31-51%. The maximum concentration of open interest was at 26000 call and 25800 put options. The highest addition of open interest was at 26700 call and 25800 put contracts. Traders closed some bullish positions from the futures series of the Nifty 50, with open interest of the November series falling over 4% to 17.75 million. This contract closed 0.7% higher at 25979.10 level.

 

The September quarter earnings have been slightly better than expected and earnings downgrades are also lower this time than the last few quarters, a quant strategist at a domestic broking firm said. Though there are worries about valuations remaining above the long-term averages, there is hope that the government's goods and services tax reduction and possibly higher spending will boost corporate earnings in the coming quarters, he said.

 

--Nifty 50 November closed at 25979.10, up 167.70 points; 103.30-point premium to the spot index

--Nifty 50 December closed at 26160.00, up 165.80 points; 284.20-point premium to the spot index

--Nifty 50 January closed at 26315.40, up 150.40 points; 439.60-point premium to the spot index

 

BSE, Hindustan Aeronautics, Asian Paints, Adani Enterprises, Infosys, Reliance Industries, Tata Consultancy Services, IndusInd Bank, Biocon, Bharti Airtel, ICICI Bank, HDFC Bank, Ashok Leyland, Bajaj Finance, Adani Ports and Special Economic Zone, Vodafone Idea, and Eternal were the most actively traded underlying stocks Wednesday.  End

 

Edited by Ashish Shirke

 

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