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Informist, Friday, Nov. 28, 2025

 

By Anjana Therese Antony

 

MUMBAI – Traders exited some long positions from the December contract of the Nifty 50 Friday after the index failed to sustain its upward momentum from the record high hit Thursday. The index moved in a very tight range Friday and failed to sustain above the key 26300 level. While the near-term bias remains bullish and the index is expected to reach new all-time highs next week, premiums in the options chain, too, hinted that the upward momentum may not sustain. Though the valuation of the domestic market has eased, it is still expensive and trades above the long-term averages.

 

On Friday, the Nifty 50 closed 0.1% lower at 26202.95 points, but ended in the green on a monthly basis for the third consecutive time. The index rose 7% in three months. The near-term support for the index is seen at 26000-25900 and resistance at 26400-26500 levels, according to a technical analyst at a domestic broking firm. 

 

Traders exited some long positions from the December futures contract of the index, with open interest falling over 1% to 13.62 million. The series was flat at 26396 points. In the options chain of the Nifty 50 expiring next week, premiums across calls and puts declined, indicating the possibility that the index may move in a tight range. Premiums on call strikes 26300-27000 declined 22-34% and those on put contracts 26200-25500 fell 28-39%. The highest addition of open interest was at 26400 call and 26200 put options. 

 

Some analysts believe that there is no clear trend that the market will sustain its momentum, particularly due to expensive valuations. Also, foreign investors remained net sellers and continued to hold significant bearish positions in index futures. More than 81% of positions of FIIs in index futures are short and the remaining are long. On Thursday, they added over 2,000 long positions and covered 1,500 short positions. However, there is also expectation that they will cover more short positions in the near term. 

 

Next week, among major cues for investors include the November automobile sales data due Monday and the Reserve Bank of India's monetary policy announcement scheduled for Dec. 5. The apex bank is widely expected to cut the repo rate by 25 basis points to 5.25%. Investors will closely watch for the central bank's comments about inflation, economic growth, and risk factors associated with the two metrics. 

 

--Nifty 50 December closed at 26396.00, up 5.10 points; 193.05-point premium to the spot index
--Nifty 50 January closed at 26565.10, up 16.40 points; 362.15-point premium to the spot index
--Nifty 50 February closed at 26698.50, down 0.60 points; 495.55-point premium to the spot index

 

Multi Commodity Exchange of India, Adani Enterprises, Mahindra & Mahindra, GAIL (India), Reliance Industries, One 97 Communications, ICICI Bank, Bharti Airtel, State Bank of India, HDFC Bank, Shriram Finance, Varun Beverages, Kotak Mahindra Bank, Larsen & Toubro, SRF, BSE, and Adani Green Energy were the most actively traded underlying stocks Friday.  End
 

Edited by Akul Nishant Akhoury

 

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