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Informist, Thursday, Jun. 4, 2026

 

By Simran Rede

 

MUMBAI – The choppy trade in the market ahead of the outcome of the Reserve Bank of India's Monetary Policy Committee urged traders to place cautious bets in the options chain of the Nifty 50 derivatives. Traders sold call as well as put options, indicating range-bound movement of the Nifty 50 index as the market lacks positive traction, derivatives analysts said.

 

Thursday, the 50-stock index settled at 23416.55, up 10.95 points or 0.1%, and the BSE Sensex ended flat at 74360.01, up 13.84 points. "(The market was) choppy because of a lot of headwinds from the global side. So, FIIs (foreign institutional investors) selling is continuously there. So, there is no confidence," said Rajesh Palviya, head of research, technical and derivatives, at Axis Securities.

 

The index is expected to be in a range with a "buy-on-dip" strategy, which suggests a limited fall of the index. Technical and derivatives analysts pegged the resistance for the Nifty 50 at 23600 points and support at 23200-23100 points.

 

The market is unlikely to substantially react but may have some fluctuations to the rate-setting panel's outcome Friday as the committee is widely expected to hold interest rates at the current levels this time even as calls for a rate hike to protect the rupee have increased.

 

"Overall, I do not see any kind of a strong traction in the market because of monetary policy, to be very honest," Osho Krishan, technical and derivative analyst at Angel One, said. "Because there have been instances where the market has not reacted. There might be some kind of intraday fluctuations that can be seen," he said.

 

Nineteen of the 24 economists and market participants polled by Informist said the Monetary Policy Committee will hold the repo rate at 5.25% at the end of its three-day meeting Friday. The market has already factored in the panel's status quo decision, which is why the market is expected to not react much to the outcome. However, the market will watch out for the apex bank's commentary on the interest rate trajectory.

 

Premiums on deep out-of-the-money call and put options fell with the same quantum, indicating the prevalence of caution for the market in the near term. Uncertainty regarding a peace deal between the US and Iran affected investor confidence. The maximum addition of open interest on the call side was seen at the 24200-point strike price, where the premium fell 50%.

 

The maximum addition of open interest on the put side was at the 22500-point strike, where the premium fell over 63%. Premiums on call options that are 2-7% higher than the spot price fell 42-50% while those on contracts just 1% higher than the spot level rose 26-34%. The highest concentration of open interest was at 24000-call and 22500-put contract.

 

--Nifty 50 June closed at 23535.00, up 19.30 points; 118.45-point premium to the spot index

--Nifty 50 July closed at 23623.60, up 7.20 points; 207.05-point premium to the spot index

--Nifty 50 August closed at 23720.00, up 10.80 points; 303.45-point premium to the spot index

 

Reliance Industries, State Bank of India, HDFC Bank, BSE, ICICI Bank, Infosys, Multi Commodity Exchange of India, Bharat Heavy Electricals, and Tata Consultancy Services were the most actively traded underlying stocks on Thursday.  End

 

Edited by Akul Nishant Akhoury

 

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