More Stories

Informist, Wednesday, May 6, 2026

 

By Gopika Balasubramanium

 

MUMBAI – The options chain indicates the benchmark Nifty 50 index is set to rise further as traders added long bets at far out-of-the-money contracts. Earlier in the day, traders were indecisive and had added short positions across the board as there was no indication of any resolution of the West Asia war any time soon. However, in the final hour of trade Wednesday, traders covered those short positions after an exclusive report from Axios that suggested the US and Iran were close to reaching an agreement. In the near term, the index is seen rising towards 25650-25800 points, two derivative analysts said. 

 

Wednesday, the Nifty 50 closed at 24330.95 points, up 298.15 points or 1.2%. The index jumped 350 points to a high of 24356.50 points. Even so, the index is still 3.5% away from the pre-war level of 25178.65 points. The White House believes it is getting closer to an agreement with Tehran on a one-page memorandum of understanding to end the war and set a framework for more detailed negotiations on Iran's nuclear power programme, Axios reported, quoting two US officials and two other sources. Crude oil prices fell below $100 a barrel following the report. At 1739 IST, the July futures contracts of Brent Crude at the Intercontinental Exchange was at $100.28 a barrel.

 

From a derivatives perspective, the put-call ratio stands near 1.18, signalling improving market sentiment, Dhupesh Dhameja, derivatives research analyst at SAMCO Securities, said in a note. Options data indicate aggressive put writing around 24200–24000 strikes, establishing a strong support, he said. As long as the index remains above the breakout level of 24200–24250 points, a buy-on-dips strategy is favoured, Dhameja said, while a sustained move above 24500 points could trigger further upside.

 

Traders bought far out-of-the-money contracts expiring next week, indicating the possibility of a rise in the Nifty 50 in the sessions to follow. Premiums at strikes such as 25000, 24500, and 25500 rose by 176-268%. The highest addition as well as concentration of open interest was at the 25000 strike, which suggests that the index would face strong resistance there. The shift in resistance indicates that the sentiment in the market has turned positive.

 

Meanwhile, on the put side, traders wrote contracts across the board, but the most bets were at the 23000 strike. This indicates that the index is unlikely to fall below this level. Traders wrote the most contracts at the 23000 put, followed by the 22900 put. The premiums on these strike prices fell 51-59%. The highest addition as well as concentration of open interest was seen at the 23000 put.

 

--Nifty 50 May closed at 24466.30, up 360.00 points; 135.35-point premium to the spot index

--Nifty 50 June closed at 24562.40, up 347.30 points; 231.45-point premium to the spot index

--Nifty 50 July closed at 24692.00, up 346.20 points; 361.05-point premium to the spot index

 

Larsen & Toubro, ICICI Bank, HDFC Bank, State Bank of India, Hero MotoCorp, Coforge, Mahindra & Mahindra, Reliance Industries, InterGlobe Aviation, SRF, Kotak Mahindra Bank, Polycab India, Infosys, HDFC Life Insurance Co., Adani Enterprises, YES Bank, 

CG Power and Industrial Solutions, Vodafone Idea, and BSE were the most actively traded underlying stocks Wednesday.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.