More Stories

Informist, Tuesday, Oct. 6, 2026

 

By Eshitva Prakash

 

MUMBAI – Call sellers covered short positions on the derivatives chain of the Nifty 50 by buying back contracts, leading to a sharp rise in call contract premiums. They also sold put contracts across strike prices as crude oil prices fell, and quarterly business updates pointed towards strong September quarter revenues. Taken together, this preference for positive delta options indicates an improvement in sentiment, which will likely lead to further gains for the headline index. Deep-out-of-the-money call contracts marked for monthly expiry continued to be in demand.

 

Premiums across 22800-23000 strike prices rose 20–30?ter the Nifty 50 smashed past its immediate technical hurdle at 23600 points. Premiums on further out-of-the-money call contracts up to 23150 strike price rose as much as 17%. Meanwhile, contracts continued to be sold on the other side of the options chain, with premiums across 22500-22700 strike prices declining 50-60%. Further out-of-the-money strike prices were under deeper selling pressure, despite negligible theta decay. 

 

Traders also favoured positive delta contracts on contracts set to expire later than Oct. 13. Premiums across deep-out-of-the-money call contracts across 23000-23340 strike prices set to expire Oct. 19 rose 10-30%. Reinforcing expectations of a recovery in the near term, put contracts across strike prices were sold. Premiums across the 22700-22400 strike prices declined 30-50%. However, these contracts were also quite expensive, indicating that not some traders are betting on the recovery in the headline index to fizzle out.

 

Going ahead, 22900–22930 points will act as an important hurdle for the Nifty 50 index, Sudeep Shah, head of technical and derivatives research at SBI Securities, said. A rise beyond 22930 points will likely extend the ongoing recovery of the 50-stock index towards the 23100-mark, Shah said. The 22630-22600 zone will likely provide immediate support, a fall below which will likely reignite selling pressure and drag the index towards the 22450-mark, Shah said.

 

Tuesday, the Nifty 50 ended at 22776.10 points, up nearly 1% from Monday, rising for two straight sessions. Shares of consumer-facing companies rose sharply amid strong quarterly updates from large-cap players. Additionally, a rise in shares of companies dependent on crude oil derivatives as input materials also rose, which supported the headline index. At 1614 IST, the December quarter futures contract of Brent Crude oil traded over 2% lower at $98.23 per barrel on the Intercontinental Exchange. 

 

"Crude oil prices slipped below the $100 mark after a large G7 stockpile release and alternative supply measures helped offset disruptions to vessel movements through the Strait of Hormuz," Vinod Nair, head of research at Geojit Investments said. Coupled with strong September quarter business updates from financials and retail sectors, along with supportive global cues, the decline in oil prices improved investors' sentiment and supported a rebound from the oversold levels, Nair said. Trader attention is now fixed on the Reserve Bank of India's interest rate policy decision Wednesday, when the central bank is expected to raise benchmark lending rates by 25 basis points.  

 

--Nifty 50 October closed at 22799.10, up 178.30 points; 23.00-point premium to the spot index

--Nifty 50 November closed at 22882.60, up 159.80 points; 106.50-point premium to the spot index

--Nifty 50 December closed at 23024.00, up 178.20 points; 247.90-point premium to the spot index

 

Trent, Reliance Industries, HDFC Bank, Kotak Mahindra Bank, BSE, Bharat Heavy Electricals, ICICI Bank, Infosys, Axis Bank, and Laurus Labs were the most actively traded underlying stocks Tuesday.  End

 

US$1 = INR 96.42

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

 

Edited by Avishek Dutta

 

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.