More Stories

Informist, Friday, Sept. 4, 2026

 

By Eshitva Prakash

 

MUMBAI – The options chain of the Nifty 50 index showed significant long unwinding and sizeable short covering, reflecting a risk-off approach ahead of the weekend and before the release of US jobs data later in the day. Traders are keenly awaiting the US Labor Department's August jobs data, as analysts expect it to play a big role in deciding whether the US Federal Reserve hikes or keeps benchmark lending rates unchanged later this month. 

 

Friday, the Nifty 50 ended slightly higher at 23897.70 points after facing selling pressure on a rise again. The headline index tracked overnight gains in US indices after US Fed Governor Christopher Waller said he was leaning toward keeping rates steady at the Fed's policy meeting. Expectations of a rate hike at the September meeting were down to 50% from 63% just a day earlier, according to the CME FedWatch tool. However, the index couldn't hold its gains as the war in West Asia kept oil prices higher, triggering profit booking.

 

India VIX, the market's fear gauge, dropped nearly 6% to 10.68 points. The fall in the index also reflects fewer protective options being purchased, which lowered option prices. "Stock- and sector-specific buying remained evident across the broader market," Vinod Nair, head of research at Geojit Investments, said in a note commenting on small-cap indices touching new record highs. "Strong earnings momentum, resilient economic growth, and robust domestic demand continue to underpin investor confidence in the broader market," he said.

 

The September futures of the Nifty 50 ended nearly 48 points higher at 24048.00 points, reflecting an improvement in traders' confidence after the underlying index snapped a four-session losing run. Open interest on the futures contract dropped 0.2% to nearly 17 million contracts. The highest call base, at 24000 points, reflects strong resistance for the 50-stock index at that level, while the highest put base, at 23900 points, indicates support. At 1515 IST, before auction repricing, the Nifty 50 closed at 23937.90 points.

 

The short-term trend of the Nifty 50 is likely to remain weak as the index continues to trade below the 50-exponential moving average on the hourly chart, Rupak De, senior technical analyst at LKP Securities, said. A sell-on-rise sentiment will prevail as long as the index remains below 24000–24200 points, he said. On the lower end, the index will likely find support at 23830–23700 points, he said. 

 

Across the two top call bases--at 24000 and 25000 strike prices--open interest declined by around 2 million contracts. Call contracts continued to be sold, with premiums of 24000–24500 strike price declining by 10-50%. Further out-of-the-money call contracts also came under selling pressure, but some expiring later than Tuesday saw buying interest. 

 

The other side of the options chain also showed a decent increase in exits. Open interest on the 23500 put option decreased by 1.6 million contracts. Far-out-of-the-money put contracts continued to be sold, with premiums across 23700-23500 strike prices declining 50–60%. Near-the-money strike prices were not spared either, with premiums on the 23800 put contract falling nearly 50%. Additionally, sellers rotated to higher strike prices, indicating improved sentiment. 

 

Market participants await US employment data due later today. Economists expect to see a gain of 55,000 jobs after July's surprise decline of 23,000. The unemployment rate is expected to tick up to 4.2%, while average hourly earnings cool to a 3% annual gain, Dow Jones Newswires reported. Next week's US consumer price index print will be even more important in assessing the interest rate outlook, analysts said. Consensus expectations of a marginal decline in core inflation for August could strengthen expectations of a pause in Fed rate hikes and help contain bond yield volatility, Vinod Nair of Geojit Investments said. 

 

--Nifty 50 September closed at 24048.00, up 47.90 points; 150.30-point premium to the spot index
--Nifty 50 October closed at 24150.00, up 46.40 points; 252.30-point premium to the spot index

--Nifty 50 November closed at 24266.70, up 58.60 points; 369.00-point premium to the spot index

Swiggy, Reliance Industries, BSE, Polycab India, KEI Industries, MCX, One 97 Communications, HDFC Bank, Vodafone Idea, and Dixon Technologies (India) were the most actively traded underlying stocks Friday.

End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.