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Informist, Monday, May 4, 2026

 

By Gopika Balasubramanium

 

MUMBAI – Derivatives analysts expect the Nifty 50 to consolidate in the coming days as traders wrote both call and put options simultaneously, with the index expected to take near-term support around 23850-23800 points. According to two derivatives analysts, Nifty 50 options are expected to expire around strike prices of 24000-24200 on Tuesday. Monday's rise in the index was buoyed by US President Donald Trump's positive comments and the relative ease in crude oil prices, they said.

 

The Nifty 50 ended at 24119.30 points, up 121.75 points or 0.5%. Intra-day, the index rose over 1% but came off its highs in the latter part of the session. With companies reporting March quarter results, the market's focus will likely be stock-specific, analysts said. The Street would continue to monitor the situation on transit of ships through the Strait of Hormuz and crude oil prices. Trump said that the US would guide stranded commercial ships out of the strait.

 

Traders wrote out-of-the-money call options expiring Tuesday, indicating that the index may face downward pressure this week. They added most short bets at 24300 call, followed by 24200 call. Meanwhile, on the put side, traders wrote contracts across the board, suggesting a slight rise for the index, but upside is likely to be capped. However, traders also bought call contracts expiring next week at strikes such as 24200 and 24100, with premiums negligible. 

 

Traders are "aggressively" writing call options as they see limited upside in the near term, and at the same time wrote put contracts, as the index came close to support of 23850 points, Vipin Kumaar, assistant vice president – technical and derivatives at Globe Capital Market, said. The index will likely consolidate in the near term and Tuesday's expiry of weekly contracts of Nifty 50 is seen between 23800 and 24200 strikes. 

 

Premiums on immediate out-of-the-money call options expiring Tuesday fell 30-40%, while those on the far out-of-the-money strikes fell 8-15%. On the put side, traders sold most out-of-the-money contracts at 23500, followed by 24100, with premiums falling 61-95%. The highest concentration of call contracts expiring Tuesday was 24300. On the put side, the concentration was at 23500 strike. The maximum additions to open interest were at 25000 call and 23500 put contracts.

 

--Nifty 50 May closed at 24199.00, up 100.80 points; 79.70-point premium to the spot index

--Nifty 50 June closed at 24300.00, up 89.40 points; 180.70-point premium to the spot index

--Nifty 50 July closed at 24444.00, up 104.00 points; 324.70-point premium to the spot index

 

Kotak Mahindra Bank, Reliance Industries, Adani Enterprises, Adani Ports and Special Economic Zone, Vodafone Idea, HDFC Bank, Ambuja Cements, Aditya Birla Capital, Bharti Airtel, ICICI Bank, Multi Commodity Exchange of India, State Bank of India, Maruti Suzuki India, BSE, Hindustan Unilever, Hindustan Aeronautics, Vedanta, and Laurus Labs were the most actively traded underlying stocks Monday.  End

 

Edited by Saji George Titus

 

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