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Informist, Tuesday, May 5, 2026

 

By Gopika Balasubramanium

 

MUMBAI – Traders wrote both put and call options expiring next week, indicating that the Nifty 50 would remain in a thin range in the upcoming sessions, derivatives analysts said. During the day, traders covered their short bets, helping the Nifty 50 recover slightly from the crucial support at 23850-23800 points. The index made a V-shaped recovery from the day's low. Additionally, the options expired between the 24000-24200 strikes this week, as expected.

 

On Tuesday, the Nifty 50 fell 86.50 points to settle at 24032.80 points.

 

"We should take the market as it comes, and in this scenario, it is difficult to predict levels even for a week," Nandish Shah, senior technical and derivatives analyst at HDFC Securities, said. He expects the traders to take a 'buy-on-dips' approach in the near-term and sees the index moving between 23800-24350 points in the near-term. He said the put-call ratio has improved to 1, indicating a slight bullish bias.   

 

Traders wrote out-of-the-money call options expiring May 12, suggesting limited upside for the index in the near-term. While derivatives analysts said the market bias is positive, the options chain suggests traders have refrained from taking long bets. They added most bets at 24000 call expiring next week, followed by 24500 call. Meanwhile, on the put side, traders wrote contracts across the board, but the most bets were on 24000. This indicates that the index is expected to face pressure and struggle to hold on to gains, given that traders added bets at the same strike on both sides.

 

Premiums on immediate out-of-the-money call options expiring next week fell 27-53%. On the put side, traders sold most out-of-the-money contracts at 24000, followed by far 22500, with premiums falling 10-39%. The highest concentration of call expiring next week was 24050. On the put side, the concentration was at 24000 strike. The maximum additions to open interest for both calls and puts were 24000.

 

--Nifty 50 May closed at 24128.00, down 78.00 points; 95.20-point premium to the spot index

--Nifty 50 June closed at 24230.00, down 82.80 points; 197.20-point premium to the spot index

--Nifty 50 July closed at 24359.00, down 90.70 points; 326.20-point premium to the spot index

 

Mahindra & Mahindra, Reliance Industries, ICICI Bank, HDFC Bank, Punjab National Bank, Bharat Heavy Electricals, Larsen & Toubro, Marico, Vodafone Idea, Bharti Airtel, KEI Industries, State Bank of India, Aditya Birla Capital, Manappuram Finance, and Axis Bank were the most actively traded underlying stocks Tuesday.  End

 

Edited by Saji George Titus

 

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