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Informist, Thursday, Apr. 2, 2026

 

By Simran Rede

 

MUMBAI - After the market rose in the final hour Thursday due to short-covering, traders continued to place cautious bets on the Nifty 50 derivatives. The index is expected to trade in a tight range Monday amid weak overall market sentiment. Premiums on deep out-of-the-money call options fell by more than half, while those on out-of-the-money put contracts fell by as much as a quarter. Market participants will also keep a close eye on developments in West Asia.

 

With traders going short on out-of-the-money call contracts, equities are likely to decline in the next trading session. Additionally, traders added short positions on the put side. However, the lower premium levels on these contracts suggest the Nifty 50 may move within a tight range, with any sudden rise unlikely.

 

Analysts said if there are any positive surprise developments regarding the war in West Asia over the weekend, the market may see an upside move. However, this will be short-lived as negative bias persists, they said. If the war does not end in the next 2–3 weeks, the market may see further downside owing to a persistent rise in crude oil prices, they said. "So long as the Middle East (West Asia) remains a live powder keg, markets will continue to trade on headlines rather than fundamentals, keeping volatility elevated and directional clarity elusive," Vinod Nair, head of research, Geojit Investments, said in a note.

 

The week ahead is loaded with high-impact triggers on both the global and domestic fronts. Domestically, the Reserve Bank of India's Monetary Policy Committee meeting will be a major trigger for the market amid geopolitical uncertainties. If the global crude oil prices remain firm, the rise in domestic inflation is likely to prompt the central bank to raise the repo rate by up to 50 basis points from the current 5.25% in the current calendar year. 

 

On the options chain, premiums on out-of-the-money call options fell 40-60% on contracts between strike prices 23200 and 24000. The open interest in each of these contracts rose by over 1-2 million. Premiums on put contracts between strike prices 22000 and 21000 fell 17-26%, with the open interest rising 2.5 million-3.5 million. The 24000 level, which saw maximum call writing, will act as resistance, and the 22000-point level will provide support in the medium term.

 

--Nifty 50 April closed at 22773.00, down 27.10 points; 59.90-point premium to the spot index

--Nifty 50 May closed at 22915.00, down 19.80 points; 201.90-point premium to the spot index

--Nifty 50 June closed at 23055.30, down 22.00 points; 342.20-point premium to the spot index

 

HDFC Bank, State Bank of India, Dixon Technologies (India), ICICI Bank, Reliance Industries, Bharti Airtel, Infosys, Axis Bank, Bajaj Finance, InterGlobe Aviation, Eternal, Larsen & Toubro, Hindalco Industries, Tata Consultancy Services, Vedanta, BSE, Hindustan Aeronautics, and National Aluminium Co. were the most actively traded underlying stocks Thursday. End

 

Edited by Saji George Titus

 

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