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Informist, Tuesday, Sept. 8, 2026

 

By Eshitva Prakash

 

MUMBAI – High open interest additions in long put options show that traders expect the Nifty 50 to fall more as crude oil prices moved closer to the psychologically important level of $100 per barrel, stoking fears about high inflation and a wider current account deficit. High call contract selling near spot level indicates that the upside for the Nifty 50 is severely limited. With the Dow Jones Industrial Average trading almost 1% lower, global cues are unlikely to turn supportive for the Nifty 50 Wednesday.

 

Tuesday, the Nifty 50 ended 0.6% lower at 23635.10 points, its lowest closing level in almost three months. A fall in shares of financial service companies and banks was a major drag on the headline index. Stocks of crude-dependent companies also declined as rising oil prices spooked investors about these companies' profit margins. In contrast to the benchmark index, the Nifty Midcap 100 and Nifty Smallcap 100 indices outperformed and closed higher. Market breadth, however, remained weak as the advance-decline ratio was tilted in favour of declines.

 

Auction repricing once again led to an explosion in put contract values in the final minutes of trading, right before expiry. During the closing auction session, the indicative close for the Nifty 50 showed an almost 2?ll from Monday. Nifty 50 put contracts at 23650 and 23700 strike prices increased sharply before falling from highs as the delta between 1515 IST levels and indicative closing levels contracted sharply. Analysts are concerned that traders are taking on big risk by holding long options minutes before expiry. 

Traders loaded up on put contracts expiring Sept. 15 in hopes that the Nifty 50 will decline more. Premiums across 23500-23600 strike prices rose around 40%. Further out-of-the-money contracts also received strong buying interest, with premiums across 23200-23400 strike prices rising 30–40%. A significant open interest at the 23000 strike price indicates strong support for the Nifty 50 at that level. Around 1.7 million new contracts were added at the 23500 strike price, indicating immediate support. Some traders also rolled their positions out towards later expiry, reinforcing analysts' prediction that bearish market sentiment will continue.

 

As long as Nifty 50 is below the 23800-mark, the prevailing bearish trend will likely remain intact, Sudeep Shah, vice president of technical and derivatives research at SBI Securities, said. If the Nifty 50 falls below 23500 points, the next crucial support will be around 23350 points in the short-term, he said.

 

Sellers continued to dominate on the other side of the options chain. Premiums on call contracts across 24000-24400 strike prices declined about 60?ch. Contracts with near-the-money strike prices were also sold, with premiums across 23700-23950 strike prices declining 40-50%. "Going forward, the 23770-23800 zone is expected to act as an immediate hurdle for the index," Shah said. Options positioning also shows that many traders unwound their long positions as hopes that the ongoing war in West Asia would end in the near term faded. 

 

The November futures contract of Brent Crude oil rose to an over six-week high of $99.46 per barrel on the Intercontinental Exchange. Prices of crude rose significantly on reports that Yemen-based Houthi rebels struck multiple facilities of Saudi Aramco. Other than a risk-off sentiment amid crude oil prices, heavy primary market activity is restricting liquidity in the secondary market, analysts said.

 

--Nifty 50 September closed at 23744.10, down 123.60 points; 109.00-point premium to the spot index
--Nifty 50 October closed at 23850.00, down 125.80 points; 214.90-point premium to the spot index

--Nifty 50 November closed at 23955.00, down 127.80 points; 319.90-point premium to the spot index

Reliance Industries, ICICI Bank, Hindustan Aeronautics, GV Vernova T&D India, Laurus Labs, HDFC Bank, Divi's Laboratories, Hitachi Energy India, Bharat Electronics, and Vodafone Idea were the most actively traded underlying stocks Tuesday.  End

 

US$1 = INR 94.82

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

 

Edited by Saji George Titus

 

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