Pre-Market Preview: Key Developments to Watch Ahead of May Futures and Options Series Expiration

Nifty 50 Falls Amid Geopolitical Tensions and Banking Correction

The Nifty 50 index fell by four-tenths of a percent on April 28, the monthly F&O expiry session, as bearish sentiment gained strength amid ongoing geopolitical tensions and a sharp correction in banks. Despite the decline, the index still defended the 20-day DEMA (23,950) and Friday's low (23,800), providing hope for bulls to regain control after some consolidation.

However, if the index decisively breaks and sustains below the 23,800 support, key levels to watch will be 23,700 and 23,500. On the other hand, holding above this level can open the door for 24,200, the immediate resistance, followed by the 24,350-24,600 zone as a crucial hurdle, according to experts.

Key Levels for the Nifty 50 and Bank Nifty

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The Nifty 50 formed a small bearish candle with an upper wick and remained within Friday's range for another session, signaling pressure at higher levels amid range-bound trading. The index still held above the 20-day EMA (23,950), though it continued to trade below medium- and long-term moving averages.

Options Data

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 0.98 on April 28, compared to a 1.00 previous session. The increasing PCR or being higher than 0.7 or surpassing 1 indicates traders selling more Put options than Call options, which generally indicates firming up of a bullish sentiment in the market.

India VIX and Long/Short Build-up

India VIX declined 1.8 percent to 18.05, extending its downtrend while staying below short- and medium-term moving averages, signaling a slight easing in market volatility. A long build-up was seen in 5 stocks, while 110 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. SAIL was retained in the F&O ban list, while no stocks were added or removed.