More Stories

Informist, Thursday, Dec. 4, 2025

By Anjana Therese Antony

MUMBAI – There were slightly cautious bets added to the derivatives chain of the Nifty 50 ahead of the Reserve Bank of India's monetary policy outcome due Friday. There are different views about the likely outcome of the apex bank, with some expecting the repo rate to be kept steady at 5.50% while another section of market participants anticipating it to be reduced by 25 basis points. Investors will also closely watch for the RBI's comments about economic growth, inflation, and future interest rate trajectory. The RBI has reduced interest rates by 100 basis points so far in 2025, and it has a 'neutral' stance at present. 

Even though there was some caution, domestic benchmark equity indices snapped a four-day losing run and closed slightly higher Thursday. The Nifty 50 closed 0.2% higher at 26033.75 points and the Sensex ended 0.2% higher at 85265.32 points. The immediate support for the index is seen at 25950 points and resistance at 26100-26250 points, according to a technical analyst at a domestic broking firm. 

Traders exited some long positions from the December contract of the Nifty 50 while they added bullish bets to the January and February series. The December contract closed 0.2% higher at 26189 level and open interest declined 0.6% to 15.10 million. In the options chain of the Nifty 50 expiring next week, premiums on call strikes 26300-26550 declined 19-43% while those on 26000-25700 put contracts fell 37-60%. Only a few out-of-the-money call contracts, which are closer to the spot level, saw their premiums rise--up 1-3% for 26050-26200 strikes. The highest addition of open interest was at 26500 call and 26000 put strikes. 

While valuation of the domestic stock market has eased compared to two years ago, the Nifty 50 trades higher than its long-period average. However, analysts are bullish about the medium-to-long term prospects of the market on expectations of revival in earnings growth, better government capital expenditure, a likely India-US trade deal, ease in tariff-related worries, more interest rate cuts, and foreign inflows. Although the selling pressure from foreign investors has eased, they continue to hold major short positions in index futures. More than 80% of FIIs' positions in index futures are short and the remaining are long. 

--Nifty 50 December closed at 26189.00, up 52.80 points; 155.25-point premium to the spot index
--Nifty 50 January closed at 26349.00, up 46.40 points; 315.25-point premium to the spot index
--Nifty 50 February closed at 26483.90, up 38.90 points; 450.15-point premium to the spot index

Reliance Industries, InterGlobe Aviation, Vodafone Idea, Multi Commodity Exchange of India, Tata Consultancy Services, Infosys, Kaynes Technology India, State Bank of India, Hindustan Unilever, HDFC Bank, Biocon, Adani Enterprises, and ICICI Bank were the most actively traded underlying stocks Thursday.  End

Edited by Deepshikha Bhardwaj

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.