More Stories

Informist, Thursday, Nov. 20, 2025

By Anjana Therese Antony

MUMBAI – With the benchmark Nifty 50 within sniffing distance of its all-time high, technical and derivatives analysts believe the index will go past the record and march towards the psychologically important level of 27000 points within a few months. Premiums on out-of-the-money call options expiring next week increased while those across put contracts declined, indicating that the index is expected to rise more in the near term.

The domestic market has underperformed global markets for about a year now but is slowly gaining momentum with corporate earnings in the past two quarters showing decent growth, Gaurav Arora, head of research at Sahi, a SEBI-registered high-performance trading platform, said. The Indian markets are not cheap, he said, but they are not expensive either, as they used to be a year ago.

"We believe mean reversion may take place," Arora said. "The Nifty 50 has the potential to rise towards the 27000 level in 2-3 months." That would mean a rise of 3% than Thursday's close of 26192.15 points, 2025's highest closing level yet. The 50-stock index rose for the second session in a row Thursday and is now barely 85 points away from the record high of 26277.35 points achieved on Sept. 27, 2024.

After almost a year of selling pressure from foreign investors, some analysts believe there will be inflows in the near term. So far this year, foreign investors have net sold equities worth almost $16 billion, up sharply from nearly $2 billion worth of shares sold in the year-ago period. Moreover, over 85% of their positions in index futures continue to be short.

"For the near term, the 26000 straddle sees a good amount of build-up in call and put sides," Arora said. "With some rise in implied volatility seen today, call writers are in panic mode and the market may see more upside going ahead." There has also been a long build-up of 3-4% in Nifty futures contracts in the past 4-5 sessions, he said.

In the options chain of the headline index, premiums on out-of-the-money call strikes between 26250 and 26900 points expiring next week rose 11-62% while those on put options between 26000 and 25600 strike prices declined around 65%. The highest addition of open interest was at the 27500-point call and 26100-point put. The maximum concentration of open interest was at the 26500 call and 26000 put. The December futures contract of the index closed 0.7% higher at 26424 points and open interest rose 89% to almost 5 million.

--Nifty 50 November closed at 26235.40, up 164.40 points; 43.25-point premium to the spot index

--Nifty 50 December closed at 26424.00, up 170.30 points; 231.85-point premium to the spot index

--Nifty 50 January closed at 26574.00, up 159.00 points; 381.85-point premium to the spot index

HDFC Bank, Reliance Industries, Axis Bank, Infosys, Bajaj Finance, ICICI Bank, Bharti Airtel, Eternal, Tata Consultancy Services, Mahindra & Mahindra, State Bank of India, Kotak Mahindra Bank, Hindalco Industries, Vodafone Idea, Larsen & Toubro, ITC, and Hero MotoCorp were the most actively traded underlying stocks Thursday.  End

Edited by Rajeev Pai

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.