Equity Futures
Nifty 50 seen at record high but periodic correction likely
This story was originally published at 18:54 IST on 24 November 2025
Register to read our real-time news.Informist, Monday, Nov. 24, 2025
By Anjana Therese Antony
MUMBAI – Traders aggressively wrote call options of Nifty 50 ahead of the expiry of monthly contracts Tuesday and some short positions were also added to the futures series. Premiums on out-of-the-money call options of the Nifty 50 expiring Tuesday as well as next week declined sharply and those on some put strikes, which are lower by up to 2% than the spot level, rose.
Some long unwinding is expected if the index inches towards its record high, which can happen in the near term, a derivatives analyst at a domestic broking firm said. Periodic corrections are inevitable, especially when valuations are expensive, even though they have eased slightly compared to the previous year, the analyst said.
The persistent inflows from domestic institutional investors are expected to continue while foreign investors are likely to start buying domestic equities again in the coming few months. However, the depreciation of the rupee and no major growth in corporate earnings could keep inflows from foreign funds limited in the near term, some analysts said. What came as a relief for investors is the renewed hope of a rate cut in the US in December after some US Federal Reserve officials spoke in favour of further reduction in key interest rates.
On Monday, headline domestic indices failed to sustain their initial momentum and closed lower, extending their fall to the second straight session. The Nifty 50 and the BSE Sensex ended 0.4% lower each at 25959.50 points and 84900.71 points, respectively. However, the renewed optimism of a further rate cut in the US could not sustain the opening gains and the Indian market closed in the red, unlike most other global peers.
In the options chain of the 50-stock index, premiums on call strikes 26000-26700 expiring next week declined 35-61% and those on 25900-25500 put contracts rose 2-17%. The highest addition of open interest was at 26700 call and 25000 put. The maximum concentration of open interest was at call strike of 26100 and 26000 put option.
--Nifty 50 November closed at 25962.10, down 115.40 points; 2.60-point premium to the spot index
--Nifty 50 December closed at 26140.10, down 129.10 points; 180.60-point premium to the spot index
--Nifty 50 January closed at 26326.00, down 98.20 points; 366.50-point premium to the spot index
HDFC Bank, Reliance Industries, ICICI Bank, Infosys, Bajaj Finance, Tata Consultancy Services, Bharti Airtel, Eternal, Mahindra & Mahindra, Kotak Mahindra Bank, State Bank of India, Hindustan Aeronautics, Axis Bank, Vodafone Idea, ITC, One 97 Communications, InterGlobe Aviation, and Tech Mahindra were the most actively traded underlying stocks Monday. End
Edited by Ashish Shirke
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