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Informist, Thursday, Sept. 10, 2026

 

By Eshitva Prakash

 

MUMBAI – Traders trimmed short positions as the Nifty 50 showed signs of a rebound Thursday. However, a rise in crude oil prices and elevated global bond yields capped the recovery, with the headline index managing to close higher after repricing during the closing auction. The put-call ratio for option contracts expiring Tuesday was 0.6, implying that the index is in an oversold position, leading to a high possibility of a bounce-back. However, with key US inflation data due over the next couple of days, traders took more defensive positions than long ones, expecting high volatility. 

Deep-out-of-the-money put contracts came under selling pressure and premiums across 22500-23000 strike prices declined 30–40%. Out-of-the-money contracts across 23100-23400 strike prices were also sold, resulting in premiums across these strikes declining 10-30%. The highest call base at the 23000 strike price indicates strong support for the 50-stock index. Some traders, however, rolled their positions out to contracts expiring later than Tuesday, hoping to benefit from a near-term decline.

 

On the other side of the options chain, premiums across 23500-24000 strike prices declined 40-50%. Further out-of-the-money contracts at 24100-24500 strike prices were also sold, with premiums down about 40-50%. The second-highest call base at 23500 indicates immediate resistance for the Nifty 50. The highest call base at the 24000 strike price shows significant resistance. Heavy selling across the options chain implies a risk-off sentiment in the market.

 

The possibility of a synchronised monetary tightening increased as higher crude prices and the prolonged war in West Asia reinforced energy-led inflation concerns, Vinod Nair, head of research at Geojit Investments, said in a note. Rising global bond yields, coupled with concerns over a potential yen carry trade unwind amid expectations of a rate hike from the Bank of Japan and a stronger yen, are likely to keep capital flows into emerging markets under pressure, he said. Traders await the European Central Bank's monetary policy decision later Thursday, where the bank is expected to raise interest rates by 25 basis points. They are also awaiting US August producer price index data to be released tonight and US consumer price index data slated for release Friday.

 

The November futures contract of Brent Crude oil traded over 1% higher at $102.25 per barrel on the Intercontinental Exchange. The US central command said it has destroyed 10 Iranian oil tankers over the past week that were part of Tehran's "multibillion-dollar" shadow fleet network funding Tehran's Islamic Revolutionary Guard Corps. Goldman Sachs, in a note, said intensifying shipping attacks raise the probability of Brent crude exceeding $120 a barrel, according to media reports.

 

Thursday, the Nifty 50 ended at 23477.80 points, up 0.2% from Wednesday and up 0.4% from 1515 IST, when the continuous trading session ended. A rise in select public sector energy and financial services shares helped the index snap a three-session losing run. Metal stocks ended lower and were major drags on the 50-stock index. Most mid- and small-cap indices ended flat to negative.

 

The 23350-23330 zone is expected to act as a crucial support for the Nifty 50, Sudeep Shah, head of technical and derivatives research at SBI Securities, said in a note. He expects that the 23550-23580 range will act as resistance for the headline index. On the daily timeframe, the index has formed a hammer pattern, suggesting a pause in the recent bearish trend, Rupak De, senior technical analyst at LKP Securities, said.

 

--Nifty 50 September closed at 23500.10, down 52.10 points; 22.30-point premium to the spot index
--Nifty 50 October closed at 23604.00, down 56.20 points; 126.20-point premium to the spot index

--Nifty 50 November closed at 23700.00, down 68.60 points; 222.20-point premium to the spot index

 

Vodafone Idea, Reliance Industries, HDFC Bank, ICICI Bank, Dixon Technologies (India), BSE, Adani Enterprises, Bharti Airtel, Ather Energy, and Axis Bank were the most actively traded underlying stocks Thursday. End

 

US$1 = INR 95.44

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

 

Edited by Saji George Titus

 

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