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Informist, Monday, Sept. 21, 2026

 

By Eshitva Prakash

 

MUMBAI – Traders bought near-the-money Nifty 50 call options despite high theta decay ahead of the weekly expiry of these contracts. This, coupled with a positive put-call ratio for contracts expiring Tuesday, indicates hopes that the headline index will rise further from current levels in the near term. A decline in crude oil prices helped improve trader sentiment, analysts said, adding that a further decline in prices will help revive risk appetite.

 

Premium of call contracts at the 23500 strike price rose over 15% to 23500, and premium at the 23450 strike price rose nearly 60%. Further out-of-the-money call options came under selling pressure after an intraday decline in the headline index. Premiums across 23550-23600 strike prices declined up to 25%. Premiums on deep-out-of-the-money call options with 23700-24000 strike prices tumbled sharply. However, several traders rolled their positions out, resulting in a sizeable rise in out-of-the-money call contracts expiring Sept. 29. 

 

On the other side of the options chain, traders sold negative-delta contracts ahead of the expiry of weekly derivative contracts Tuesday. Premiums across 23300-23400 strike prices declined 60–70%. Deep-out-of-the-money contracts across 23000-23250 strike prices declined up to 50%. Contracts expiring after Tuesday were also sold, supporting a positive market trend. 

 

"Put writing was seen at multiple strikes along with some call additions at out-of-the-money strikes," Vipin Kumar, assistant vice president at Globe Capital Market, said. The put-call ratio for the current expiry, at 1.42, indicates slightly overbought positions in the current contract, he said. A high open interest build-up at the 23500 strike price indicates where the Nifty 50 will find resistance, and a high open interest at the 23400 strike price shows support. 

 

Monday, the Nifty 50 ended at 23414.30 points, up 67.90 points or 0.3% from Friday. Shares of pharmaceutical, healthcare, and select consumer-facing companies rose, supporting the headline index. A rise in bank and financial services stocks also helped maintain the four-day winning run for the 50-stock index. Meanwhile, a fall in energy and select information technology stocks limited further gains. Going ahead, analysts said, elevated global bond yields, geopolitical tensions, and currency weakness remain key risks.

 

"Improving sentiment ahead of the upcoming US-China talks, renewed hopes of diplomatic engagement between the US and Iran at the United Nations, and the decline in oil prices and bond yields have provided relief to investors," Vinod Nair, head of research at Geojit Investments, said. The easing of concerns around inflation and energy costs has supported a broad-based recovery across sectors and supported overall market sentiment, he said.

 

At 1536 IST, the November futures contract of Brent Crude oil traded 2.5% lower at $101.32 per barrel on the Intercontinental Exchange. Oil prices fell as investors focused on signs of a recovery in Saudi Arabian crude shipments, even as attacks by Yemen's Iran-backed Houthis added to tensions in West Asia. Houthi attacks notwithstanding, Saudi Aramco has increased exports through the Strait of Hormuz this month, according to traders cited by Reuters.

 

Despite a brief respite in crude oil prices, the external rate environment has turned less supportive, Motilal Oswal Financial Services said in a report. Higher US bond yields, elevated crude, and the Reserve Bank of India's liquidity absorption are reinforcing each other, limiting the scope for a meaningful decline in Indian bond yields, the report said. An October rate hike is a meaningful possibility if crude oil prices remain elevated and inflation expectations begin to rise, the brokerage said, adding that under a sustained oil-shock scenario, it sees potential for 75–100 basis points of cumulative rate hikes.

 

--Nifty 50 September closed at 23450.00, up 71.50 points; 35.70-point premium to the spot index
--Nifty 50 October closed at 23545.10, up 64.80 points; 130.80-point premium to the spot index

--Nifty 50 November closed at 23663.50, up 83.70 points; 249.20-point premium to the spot index

 

HDFC Bank, BSE, Reliance Industries, Tata Consultancy Services, Bharti Airtel, Patanjali Foods, One 97 Communications, Laurus Labs, Infosys, and Aurobindo Pharma were the most actively traded underlying stocks on Monday.  End

 

US$1 = INR 95.82

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

 

Edited by Saji George Titus

 

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