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Informist, Tuesday, Apr. 7, 2026

 

By Simran Rede

 

MUMBAI – The options chain of the Nifty 50 indicates that the index is likely to consolidate ahead of the March quarter earnings season starting Thursday. Premiums across call and put options of the Nifty 50 expiring Monday fell. The capital markets are shut Apr. 14 for Ambedkar Jayanti. Some derivatives analysts said the equity market will continue to move in a tight range while investors watch for developments in the military conflict raging in West Asia.

 

The benchmark indices closed higher Tuesday, rising for the fourth session. The Nifty 50 and the BSE Sensex each ended 0.7% higher at 23123.65 points and 74616.58 points, respectively. After the 50-stock index crossed the 23000 mark for the first time since Mar. 27, the 22500-23000 level became a strong support level for the index. Investors' bias is expected to remain bullish as long as the index stays above this mark, according to derivatives analysts. Resistance for the near term is seen at 23200-23500 points.

 

Premiums on 24000-25000 call options of the Nifty 50 expiring next week declined around 14-34% and those on 20100-22000 put contracts fell 11-40%. The highest addition of open interest was at the 24500-point call and 20100-point put. The highest concentration of open interest was at the 25000 call and the 20100 put contracts.

 

The April futures contract of the benchmark index closed at a premium of 41.35 points to the spot index. Open interest in the contract rose over 4% to 22.38 million, according to provisional data. The India VIX, the market's fear gauge, declined over 3% to 24.70. The cooling of volatility below 25 suggests an overall bullish stance in the market. However, there are some expectations of volatility remaining high in the near term amid the geopolitical crisis in West Asia and higher crude oil prices. 

 

Market participants are awaiting further developments in West Asia. US President Donald Trump's deadline for Iran to reopen the Strait of Hormuz is 0530 IST Wednesday. "Disruptions around the Strait of Hormuz continue to pose supply risks, with nearly 20% of global oil flows impacted, keeping energy prices elevated and weighing on oil-importing currencies like INR (India rupee)," Jateen Trivedi, vice-president, commodity and currency research, at LKP Securities, said in a note.

At the same time, the market will react to the Reserve Bank of India's Monetary Policy Committee's decision on interest rates. Market participants expect the RBI to hold the repo rate at 5.25% at its first meeting for the financial year 2026-27 (Apr-Mar), though they expect the bank to raise interest rates in 2026.

 

--Nifty 50 April closed at 23165.00, up 108.00 points; 41.35-point premium to the spot index

--Nifty 50 May closed at 23315.00, up 128.60 points; 191.35-point premium to the spot index

--Nifty 50 June closed at 23474.00, up 126.60 points; 350.35-point premium to the spot index

 

Reliance Industries, ICICI Bank, HDFC Bank, Infosys, State Bank of India, Jubilant FoodWorks, Vedanta, Bharti Airtel, Steel Authority of India, Tata Consultancy Services, Axis Bank, Hindalco Industries, Larsen & Toubro, Multi Commodity Exchange of India, BSE, Bajaj Finance, Tata Steel, and Kotak Mahindra Bank were the most actively traded underlying stocks Tuesday.  End

 

Edited by Rajeev Pai

 

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