
Options data hint at limited upside after sharp recovery this month
Subscribe to enjoy similar stories.After recovering nearly 7.5% between the March and April derivatives series amid the Iran war, options traders are baking in a near 900-point range for Nifty from Tuesday's closing of 23,995.70 over the next one week, per exchange data.Traders expect the Nifty to trade in a 23,558–24,442 range until next Tuesday, based on the volume weighted average price per share (65 shares make one contract) of the 24,000 call and put options expiring on 5 May."The price of the 24,000 straddle (call and put) indicates a rangebound market after the smart rally from the March to April derivatives expiry," said Kruti Shah, quant analyst at Equirus.Shah expects upside pressure to set in around 24,550–24,600, which coincides with the market high of 21 April — 24,601.7 — after which the index corrected 2.5% to Tuesday's close of 23,995.7.A Nifty derivatives series expires on the last Tuesday of every month. During the course of an expiry month, the NSE offers a weekly index options expiry every Tuesday.