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Informist, Thursday, May 21, 2026

 

By Anshul Choudhary

 

MUMBAI – Options data suggest the Nifty 50 is likely to be rangebound amid uncertainty around the US-Iran deal. Analysts don't expect a sharp fall, as stock valuations have improved in the market following the recent corrections triggered by the US-Iran war.

 

Traders sold call options across strike prices, indicating that they expect little to no significant rise in the market. Further, traders sold in-the-money put options, indicating a potential bounce if the market falls. Thursday, the Nifty 50 closed at 23654.70 points, largely unchanged from Wednesday.

 

"Until a clear breakout is witnessed, traders are advised to continue adopting a strategy of buying near support levels and booking profits near resistance zones...," Rajesh Bhosale, technical analyst at Angel One, said in a note. The market is likely to see a significant reaction only if it falls below 23200 points or crosses 23900 points, Bhosale said.

 

The uncertainty about crude oil prices has kept bulls on the sidelines. There is no deal between the US and Iran yet, and trade through the Strait of Hormuz remains minimal, keeping Brent crude futures above $100 per barrel.

 

High oil prices have already forced oil companies to raise retail petrol and diesel prices, increasing the risk of inflation and higher interest rates. Overnight indexed swap rates are pricing in a repo rate hike of 50 basis points in June after a Bloomberg report said the Reserve Bank of India is considering various options, including an increase in the policy rate, dealers said. Currently, the repo rate is at 5.25%.

 

Traders sold call options across the board, with the highest open interest addition at the 23800 strike price, which is likely to act as immediate resistance. There was some buying in deep out-of-the-money call options above 24750 strike prices.

 

On the put side, traders sold out-of-the-money contracts but bought in-the-money and at-the-money contracts. The highest open interest additions were seen at 22500 and 22900 strike prices.

 

--Nifty 50 May closed at 23635.00, down 33.50 points; 19.70-point discount to the spot index

--Nifty 50 June closed at 23715.00, down 40.60 points; 60.30-point premium to the spot index

--Nifty 50 July closed at 23813.00, down 33.20 points; 158.30-point premium to the spot index

 

HDFC Bank, ICICI Bank, Infosys, Tata Consultancy Services, Reliance Industries, Grasim Industries, Bajaj Finance, Bharti Airtel, Wipro, and JSW Steel were the most actively traded underlying stocks Thursday.  End

 

US$1 = INR 96.20

 

Edited by Saji George Titus

 

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