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Informist, Tuesday, Mar. 10, 2026

 

By Gopika Balasubramanium

 

MUMBAI – Traders sold extreme out-of-the-money contracts and bought in-the-money call contracts, expiring next week, likely to hedge against volatility in the equity market since hostilities started in West Asia. Traders also sold put options that expire next week. In the near term, analysts expect the market to react to developments in the West Asia conflict, which has entered its eleventh day, with no signs of abatement. 

 

Earlier in the day, US President Donald Trump had indicated that the war is nearing the end and warned Iran that Washington will intensify attacks if Tehran hinders the flow of oil through Straif of Hormuz. Responding to this, Ali Larijani, a top Iranian security official, wrote on the social media platform X that Iran does not fear Trump's threats. 

 

Crude oil prices have cooled down to $91 per barrel. However, to sustain the decline in oil prices, transit through the Strait of Hormuz, which has been effectively closed since the beginning of the conflict on Feb. 28, will have to recommence, The Wall Street Journal said, quoting analysts at ING. 

 

Back home, a senior research analyst said the Nifty 50 falling below 22000 is not possible. "It's very difficult." ... you know, a lot of corrections have happened in the last two weeks. So, I believe this correction is good as valuations would become cheaper, we are expensive as compared to other emerging markets," he said.

 

The highest concentration of call contracts that expired this week was at 24300, followed by 24250. On the put side, the concentration was at 24250 strike. Premiums across put and call options at most strike prices above the spot fell. Some derivative analysts said the put-call ratio for contracts expiring next week indicates a lower likelihood of a rise in the Nifty 50. 

    

"We've seen activity (selling) on both sides of the (options) chain," Vipin Kumaar Global, assistant vice president – technical and derivatives at Globe Capital Market, said. "We should wait for at least the first hour of Wednesday's trade for a clearer picture, as current open interest positions are low," Kumaar said. Asked why traders sold contracts on both sides, he said," ... the majority of initial positions are hedged against open positions."  

 

Premiums of deep out-of-the-money call options expiring next week fell 31-70%. However, some traders bought call options at strikes near the spot between 24200 and 24300. However, premiums were very meagre. The highest open interest addition and concentration were at the 26000 call expiring next week. Meanwhile, on the put side, traders sold contracts at extreme out-of-the-money strikes. The maximum concentration and open interest addition was at 21500 put.       

 

--Nifty 50 March closed at 24405.70, up 283.20 points; 144.10-point premium to the spot index

--Nifty 50 April closed at 24552.50, up 266.70 points; 290.90-point premium to the spot index

--Nifty 50 May closed at 24676.20, up 265.60 points; 414.60-point premium to the spot index

 

Dixon Technologies (India), Reliance Industries, Shriram Finance, ICICI Bank, HDFC Bank, State Bank of India, Polycab India, InterGlobe Aviation, BSE, Axis Bank, Infosys, Multi Commodity Exchange of India, Larsen & Toubro, National Aluminium Co., Bharti Airtel, Bharat Electronics, Vedanta and Eternal were the most actively traded underlying stocks Tuesday.  End

 

US$1 = INR 91.80

 

Edited by Saji George Titus

 

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