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Informist, Monday, May 25, 2026

 

By Gopika Balasubramanium

 

MUMBAI – The Nifty 50 is expected to rise more in the coming days, as traders aggressively bought call options at strike prices above spot and sold put contracts. Traders added long bets at immediate out-of-the-money call options in the last hour of trade, helping the index to breach 24000 points for the first time since May 8. Analysts said the sentiment in the market is positive as the US and Iran have given hints of reaching a deal soon, following which crude oil prices fell below the $100-a-barrel mark.    

 

On Monday, the Nifty 50 index closed at 24031.70 points, up by 312.40 points or 1.3%. The index managed to sustain its gains throughout the session as traders covered short positions at in-the-money call contracts. Traders closed extreme out-of-the-money put options, capping the downside for the index. The index hit a two-week high of 24054.45 points during the session.

 

There has been "put writing" at multiple strikes alongside optimum call addition at various levels, Vipin Kumar, assistant vice-president – technicals and derivatives – Globe Capital Market, said. The put-call ratio is currently at 1.30, indicating "bullish" movement going ahead, he added. The index is seen taking support at 23850 points and facing resistance at 24200 points. 

 

On Monday, the day before the monthly expiry of the Nifty 50's options, traders added long bets at call contracts with strike prices between 24100 and 24400. Premiums on these strike prices rose 47-202%. In call contracts with strike prices such as 24400, 24300, and 24200 traders added around 2-3 million new long bets. However, while they cut back their positions at strike prices above 24400 towards the end of the session, strikes such as 24500 and 24550 saw buying. Premiums of these contracts rose 9-12%. The highest addition of open interest was at 24400 call and the maximum concentration was at 25000 call.

 

Traders sold put contracts expiring Tuesday across the board, indicating minimum expectations of a fall from the spot in the near term. They primarily wrote put contracts at strike prices between 24000 and 23800 with their premiums falling 87-93%. However, they closed put contracts at extreme out-of-the-money strikes between 22000 and 23000, indicating that the index will not fall to such levels in the near term. The highest addition of open interest and the maximum concentration was at the 24000 put.

 

--Nifty 50 May closed at 24119.00, up 375.00 points; 87.30-point premium to the spot index

--Nifty 50 June closed at 24155.00, up 353.60 points; 123.30-point premium to the spot index

--Nifty 50 July closed at 24245.00, up 344.10 points; 213.30-point premium to the spot index

 

HDFC Bank, ICICI Bank, Infosys, Reliance Industries, State Bank of India, Tata Consultancy Services, Wipro, and Bharti Airtel were the most actively traded underlying stocks on Monday.  End

 

Edited by Avishek Dutta

 

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