Informist, Friday, Jun. 6, 2025

By Anshul Choudhary

MUMBAI – Options traders added long positions and covered their short positions on hopes of better economic growth in 2025-26 (Apr-Mar) after the Reserve Bank of India surprised markets with a 50-basis-point cut in the repo rate. Analysts were optimistic the RBI's decision will help the Indian economy grow faster.

On Friday, the Nifty 50 closed 1% higher, gaining over 250 points, at 25003.05 points. With the repo rate down to 5.50%, and lower taxes and good monsoons expected to result in good growth in the second half (Oct-Mar) of the current financial year, analysts are more confident about earnings growth of companies. This pushed traders to buy call options across the board, indicating expectations of gains in the Nifty 50 next week. Options data show traders even covered their short positions in in-the-money call options.

The highest open interest addition on the call side was at 26800 strike. This was followed by 25500-25600 call, which is expected to act as a resistance. This shows bullish sentiment as options data earlier showed the Nifty 50's resistance at 25200-25300 points.

On the put side, traders sold contracts across the board with highest open interest additions at 24900-25000 points. These levels suggest the Nifty 50 is likely to find support at current levels and it may rise more on Monday, when markets open for trading.

Futures data shows traders added long positions in the June futures contracts of the Nifty 50. The June contract closed at a premium of 87.55 points to the spot index. Open interest in the contract rose over 12% to over 12 million, according to provisional data. 

--Nifty 50 Jun closed at 25090.60, up 229.20 points; 87.55-point premium to the spot index

--Nifty 50 Jul closed at 25219.60, up 220.50 points; 216.55-point premium to the spot index

--Nifty 50 Aug closed at 25336.00, up 228.60 points; 332.95-point premium to the spot index

HDFC Bank, Bajaj Finance, Bajaj Finserv, State Bank of India, Axis Bank, ICICI Bank, BSE, DLF, IndusInd Bank, Multi Commodity Exchange of India, Cholamandalam Investment And Finance Co., Reliance Industries, Hindustan Aeronautics, IDFC FIRST Bank, Shriram Finance, Muthoot Finance, Bank of Baroda, and Eternal were the most active underlying stocks Friday. End

Edited by Tanima Banerjee

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