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Informist, Friday, Aug. 7, 2026

 

By Eshitva Prakash

 

MUMBAI – Nifty 50 call option sellers returned in force after another rise in Brent crude oil prices and mostly weak global markets dampened traders' risk appetite. With most positions built around the closing level of the Nifty 50, the headline index is likely to be rangebound in the near term. Low implied volatility on out-of-the-money strike prices lends further support to expectations of a rangebound movement.

 

Call writers were also active on the derivatives chain of the BSE Sensex. With Thursday's close serving as a reminder that liquidity in the closing auction is improving, traders found it prudent to sell previously rolled-up positions, leading to a steep fall in premiums across out-of-the-money call contracts expiring on Aug. 20. Premiums on out-of-the-money Sensex call options were almost glued at expensive levels Thursday until the closing auction session ended, a contrast to the norm on Sensex expiry days. As more institutional players participate in the closing auction session, liquidity will likely improve in upcoming days and deter bets that sought to benefit from holding high delta contracts near expiry, analysts said. Such liquidity will also avoid traders taking on contracts with a high pin risk.

 

On Friday, the Nifty 50 ended at 24570.65 points, down 0.3%, and the BSE Sensex ended at 78499.17 points, down 0.6%. Both headline indices ended at levels close to their levels at the end of the continuous trading session. Automobile and information technology stocks were in high demand, while shares of private banks and financial service companies ended lower. Grasim Industries ended 3.5% higher, followed by Tata Consultancy Services and Hindalco Industries, which rose over 3?ch. Bajaj Finserv and Bajaj Finance were the worst hit constituents and fell nearly 4% and 6%, respectively. 

 

"Going forward, the 24750-24780 zone will remain a crucial hurdle for the Nifty (50)," Sudeep Shah, head - technical and derivatives research at SBI Securities, said. A rise above 24780 points could result in the Nifty 50 moving higher, towards 24900 points, followed by 25050 points. On the downside, the 24500–24480 levels are expected to provide immediate support, the analyst said.

 

Traders relentlessly sold call options near spot levels of the Nifty 50. Premiums across 24600–24800 strike prices declined 40–60%. Premiums on further out-of-the-money call options also declined sharply. The highest open interest at 24600 and 24700 strike prices implies these levels will act as a crucial resistance for the Nifty 50. There was some buying interest in near-the-money put options at the 24500 and 24400 strike prices. Premiums on these contracts rose 10-16%, despite low implied volatility. Put contracts at 24000 strike, marked for expiry Aug. 25, were also popular with some traders.

 

At 1540 IST, Brent crude oil futures contract for October delivery traded 0.3% lower at $82.3 per barrel. This contract's value has risen in the past two sessions amid Iran's draft plan to ban US and Israeli ships from transiting the Strait of Hormuz. The view on when the war will end continues to be unclear, with reports quoting US President Donald Trump saying he expects the war on Iran to conclude "pretty soon" and Tehran can't "go on much longer." The US, Iran, and Oman are approaching a temporary deal to reopen the Strait of Hormuz, Al Jazeera reported.

 

--Nifty 50 August closed at 24651.20, down 88.20 points; 80.55-point premium to the spot index
--Nifty 50 September closed at 24777.90, down 83.50 points; 207.25-point premium to the spot index
--Nifty 50 October closed at 24930, down 64.30 points; 359.35-point premium to the spot index

 

State Bank of India, Reliance Industries, Bajaj Finance, Hindalco Industries, Samvardhana Motherson International, Hero Motocorp., Kalyan Jewellers India, ICICI Bank, BSE, and HDFC Bank were the most actively traded underlying stocks Friday.  End

 

US$1 = INR 95.21

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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