The Indian stock market traded mixed on Wednesday, with the Nifty 50 declining 31.95 points (0.14%) to 23,618 in the cash market. However, the Nifty May 2026 futures closed at 23,605, trading at a discount of 13 points compared to the cash market closing. According to reports from Business Standard, the India VIX declined 4.86% to 18.68, indicating reduced market volatility expectations. In the options segment, the highest Open Interest on the Call side is at the 24,000 strike, followed by 23,800 which could act as resistance levels. On the Put side, the highest Open Interest is at 23,400 followed by 23,300 which may serve as support levels. The premium for the At-the-Money option is ₹549, indicating a likely trading range between 23,100 and 24,200 for the week.
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on May 26, 2026, expecting a moderately bullish view. As reported by Livemint, this strategy involves buying one lot of the 23,750 strike Call Option at ₹200-₹230 and simultaneously selling one lot of the 24,000 strike Call Option at ₹110-₹130. The break even point for this strategy is 23,839. The maximum potential risk for this Nifty options trading strategy is ₹5,785, whereas the potential maximum reward is ₹10,465. The May 2026 F&O contracts will expire on 26 May 2026.
When selecting expiry options, traders must consider their trading style and risk capacity. Weekly expiry contracts are suitable for intraday, scalping, and short-term trading due to rapid premium movements and lower capital requirements. However, they carry higher risk levels with significant time decay pressure during the final days. Monthly expiry contracts are better suited for swing trading and positional strategies, offering more stable premium movements and longer holding periods. In the Indian market, NSE offers weekly Nifty 50 options while BSE provides monthly Sensex options, with both exchanges offering regular monthly expiry cycles for most stock and index options. The top-traded individual stock futures in the F&O segment were Infosys, HDFC Bank and Tata Consultancy (TCS).
