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Informist, Wednesday, May 13, 2026

 

By Gopika Balasubramanium

 

MUMBAI – Derivatives analysts see the short-term market trend as negative unless the Nifty 50 closes decisively above 23800 points. No sustained upside in the index is possible until the threshold is breached, analysts said. Traders had bought near-out-of-the-money call options until the last 30 minutes of the trade, but shifted their positions towards the close. The options chain indicates that the index is likely to be range-bound for the coming days.   

 

The Nifty 50 closed at 23412.60 points, up 33.05 points or 0.1%, snapping a four-day losing run. The index has fallen by over 950 points in these four sessions. The near-month futures contracts of Nifty 50 also closed higher. The near-month contract, which expires at the end of May, closed at 23481 points, at a premium of 68.40 points. 

 

Till the Nifty 50 closes above 23800 points, the short-term trend remains negative, Nandish Shah, technical and derivatives analyst at HDFC Securities, said. In the days ahead, the levels to watch out for are between 23100 and 23800 points, Shah said. Analysts also said the index will face strong selling pressure at 23600 points. 

 

On Wednesday, traders wrote far-out-of-the-money contracts expiring next week and sold put contracts near the spot, indicating that the index will likely consolidate in the near term. While traders added some long bets until the final hour of trading on near-out-of-the-money calls, they wrote off the options towards the end of the trading session, extinguishing hopes of any upside. 

 

Traders wrote extreme out-of-the-money call contracts expiring Tuesday and the premiums on strike prices such as 23900, 25000, and 24000 fell 17-42%. At the 23800 call, premiums fell by over 12%, but fewer than 1 million contracts were added. This contract had a premium of INR 84 on Wednesday. The highest addition of calls was at the 23900 strike price, and the highest concentration was at the 24000 call.

 

On the put side, traders sold contracts expiring next week at out-of-the-money strike prices. Premiums on the 23400 put and 23500 put declined 16-19%. Traders opened 1.7 million short bets at the 23400 strike price, which also showed the maximum addition. Traders also wrote puts at strikes below the spot level, such as 23000 and 23300, with premiums surging 20-24%. The highest addition of open interest was at 23400 put, and the maximum concentration was at the 23000 put.

 

--Nifty 50 May closed at 23481.00, up 56.30 points; 68.40-point premium to the spot index

--Nifty 50 June closed at 23580.00, up 51.60 points; 167.40-point premium to the spot index

--Nifty 50 July closed at 23690.00, up 33.00 points; 277.40-point premium to the spot index

 

Dixon Technologies (India), Vodafone Idea, State Bank of India, Dr. Reddy's Laboratories, Cipla, Multi Commodity Exchange of India, Bharti Airtel, and ICICI Bank were the most actively traded underlying stocks Wednesday.  End

 

Edited by Saji George Titus

 

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