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Informist, Wednesday, Dec. 3, 2025

By Simran Rede

MUMBAI – Traders aggressively added short bets to the derivatives chain of the Nifty 50 as the index closed lower for the fourth consecutive session Wednesday. They are expected to add more short bets Thursday amid near-term pessimism as well as on caution ahead of the Reserve Bank of India's policy outcome due Friday. The fall of the rupee to a record closing low of 90.19 a dollar also weighed on the sentiment after it surpassed the psychologically crucial support of 90 per dollar. 

The Nifty 50 is expected to be rangebound in the near term, with immediate resistance seen at 26050-26200 points and support at 25800 points, Rajesh Palviya, head of technical and derivatives research at Axis Securities, said. Wednesday, the Nifty 50 settled at 25986 points, down 46.20 points, or 0.2%. 

Following a stronger-than-expected GDP print for the September quarter, there were different views about the Reserve Bank of India's likely decision about monetary policy, due Friday. Some market participants expect the central bank to keep the repo rate unchanged at 5.50% while others expect it to be cut by 25 basis points to 5.25%.

If the banking watchdog maintains a status quo on rates, the market is likely to correct further, with the Nifty 50 testing 25700 points, Palviya of Axis Securities said. Additionally, rate-sensitive stocks such as banks and automobiles may also see some correction, he said. Palviya expects the Nifty 50 to see a rebound to 26200 levels if the Reserve Bank of India cuts the repo rate Friday. Additionally, any positive development on the India-US trade deal front is expected to push headline indices to new record highs, he added. 

The put-call ratio is 0.81, which is below 1, indicating that put concentration is higher compared to call, Palviya said. "So, maybe market is likely to find support at lower level as put base is continuously moving up," he said.

Premiums on call options 26000-26500, which are up to 2% higher than the spot level, fell 32-49% and those on put contracts 26000-25900 rose 12-15%. The highest addition of open interest was at 26000 point call and 25900 point put options. The maximum concentration of open interest was at 27000 call and 25500 put contracts. 

When asked about the options strategy suitable under the current market condition, Palviya said it is very difficult to deploy any strategy from a positional perspective as the market behaviour is changing every day which makes it difficult to tweak strategies. "...one should try to find out the directional trade, plain vanilla, call or put, because as we are now trading near to the important support area."

--Nifty 50 December closed at 26142.70, down 70.30 points; 156.70-point premium to the spot index
--Nifty 50 January closed at 26314.90, down 73.80 points; 328.90-point premium to the spot index
--Nifty 50 February closed at 26452.00, down 78.00 points; 466.00-point premium to the spot index

JSW Steel, State Bank of India, HDFC Bank, Infosys, ICICI Bank, Tata Consultancy Services, Vodafone Idea, Hindustan Unilever, Canara Bank, Shriram Finance, BSE, Punjab National Bank, Biocon, Angel One, Multi Commodity Exchange, Reliance industries, Bank of Baroda, Kotak Mahindra Bank, and Adani Enterprises were the most actively traded underlying stocks Wednesday.  End

Edited by Deepshikha Bhardwaj

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