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Informist, Friday, Jun. 5, 2026

 

By Simran Rede

 

MUMBAI – Benchmark equity indices are likely to move in a range next week as the market awaits fresh triggers for a substantial move. The Nifty 50 is likely to trade with a negative undertone, though the index's decline is likely to be limited, analysts said. Traders did not place any aggressive bets in the options chain of the Nifty 50 as the index moved in a tight range Friday, a trend which is expected to continue at least till the war in West Asia comes to an end, according to analysts.

 

Premiums across out-of-the-money call and put options expiring Tuesday tumbled, indicating that traders were unsure about the market's direction for the next trading session. Analysts said the market has factored in most of the developments, including optimism about progress in peace talks between the US and Iran.

 

The market also did not react much to the Reserve Bank of India's Monetary Policy Committee's decision. The rate-setting panel kept the repo rate unchanged at 5.25% in a unanimous decision, even as risks to growth and inflation rose from the war. The committee also retained its 'neutral' policy stance.

 

Announcing the monetary policy, Governor Sanjay Malhotra said the central bank intends to implement rules on bank lending for proprietary trading. Following this, shares of the BSE and Angel One fell sharply but closed off their intraday lows, down 4% and 2% respectively. The central bank had earlier proposed rules that would bar bank loans for proprietary trading and demand 100% collateral for most other bank funding to brokers.

 

Traders using the margin trading facility will incur potentially higher costs from Jul. 1, as increased broker overheads due to capital requirements may lead to higher brokerage fees or increased margin requirements for the end-trader. The new rules may raise the cost of raising capital for proprietary trading firms and squeeze profits. 

 

Traders added short positions on the call side, with out-of-the-money premiums falling around 50?ross strikes expiring next week and open interest rising up to 6 million. The highest open interest concentration and the maximum addition of open interest were at the 24000 strike call. On the put side, the 23050-point contract had the highest open interest addition, and the 22500-point contract had the maximum concentration. Premiums on 21100-23000 put contracts expiring next week declined 42-56%. 

 

--Nifty 50 June closed at 23440.00, down 71.60 points; 73.30-point premium to the spot index

--Nifty 50 July closed at 23545.10, down 59.90 points; 178.40-point premium to the spot index

--Nifty 50 August closed at 23640.00, down 55.90 points; 273.30-point premium to the spot index

 

BSE, State Bank of India, Adani Enterprises, Multi Commodity Exchange of India, HDFC Bank, Bajaj Finance, ICICI Bank, Reliance Industries, Axis Bank, and Adani Green Energy were the most actively traded underlying stocks on Friday. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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