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Informist, Monday, May 11, 2026

 

By Gopika Balasubramanium

 

MUMBAI – Derivatives analysts expect caution in the market to continue as long as the Nifty 50 remains below 24000-24100 points. Market sentiment was dampened after US President Donald Trump rejected Tehran's proposal to end the war. Traders added short positions in the options chain throughout the day, pushing the index past its support levels. Some derivatives analysts expect the weekly Nifty 50 contracts to expire at strike prices between 23650 and 23800.         

 

Monday, the Nifty 50 closed at 23815.85, down 360.30 points or 1.5%. The index closed lower for the third consecutive session, shedding more than 2% over the period. The index has been under pressure over the last few sessions, as crude oil prices shot up to four-year highs and remained above $100 a barrel, with no visibility of prices cooling as shipments through the Strait of Hormuz remain closed. While the index has recovered quite a bit from the lows it hit in April, it has never managed to close above the 25000 mark ever since the war began. It is still 10% away from the record highs it hit in early January. 

 

The Nifty 50 is trying to take support between 23900-23850 points, as maximum put writers have taken positions at these strike prices, Ashish Sherigar, senior technical and derivatives analyst at NVS Brokerage, said. "If Nifty 50 fails to sustain this (above) level, then we could probably see 23650 tomorrow (Tuesday)," the analyst said. On the other hand, 24000 has now become crucial resistance, he added. The current put-call ratio is at 0.8, two other derivatives analysts said, and is indicative of a further downside in the index.

 

Monday, traders wrote out-of-the-money contracts expiring Tuesday, and premiums on near-strike prices such as 24000, 23900, and 23950 declined by 80-86%. At the 24000 call, traders aggressively reduced their bets and sold around 11 million of the total 14 million contracts. Traders also took short positions in far-out-of-the-money call contracts at the 25000 strike price, and the premiums fell a whopping 70%. The largest addition to open interest was at 24000 call. Meanwhile, the concentration of open interest was highest at the 25000 strike, with over 15 million contracts.  

 

On the put side, traders bought contracts far out-of-the-money strike prices, suggesting negative market sentiment. Premiums at strike price 23500 rose 52% and that at 23500 put nearly tripled. Traders bought over 2 million new contracts at this strike price. Traders also bought in-the-money puts at strikes such as 23850 and 23900, with premiums surging around 191-195%. The highest addition and the maximum concentration of open interest were at the 23500 put.

 

--Nifty 50 May closed at 23860.00, down 374.60 points; 44.15-point premium to the spot index

--Nifty 50 June closed at 23959.00, down 380.20  points; 143.15-point premium to the spot index

--Nifty 50 July closed at 24099.70, down 377.40 points; 283.85-point premium to the spot index

 

State Bank of India, Multi Commodity Exchange of India, Titan, Vodafone Idea, Canara Bank, and HDFC Bank were the most actively traded underlying stocks Monday. End

Edited by Saji George Titus

 

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