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Nifty Futures: 22,620.8 (0.4%), Bank Nifty Futures: 54,923.0 (0.2%).

Domestic equity markets returned from the Gandhi Jayanti extended weekend to orchestrate a much-needed relief rally, successfully snapping their prolonged losing streak. The Nifty Futures advanced 90.5 points as Open Interest contracted by 0.3 percent (down 0.56 lakh shares to 215.54 lakh), confirming active Short Covering. Bank Nifty Futures mirrored this upward movement, gaining 128.2 points alongside a 1.6 percent Open Interest reduction (down 0.41 lakh shares to 24.84 lakh), validating parallel Short Covering. The primary catalyst was cooler-than-anticipated United States employment data released over the weekend, which diminished fears of immediate Federal Reserve rate hikes and prompted a retreat in the United States ten-year Treasury yield from its peak of 5.34 percent. This macro easing provided crucial breathing room to emerging market assets. However, Brent crude oil remaining stubbornly elevated above 100 dollars per barrel amidst ongoing West Asia hostilities contained overall bullish exuberance, restricting recovery to localized pockets. Concurrently, derivative carry margins compressed across both major indices; the Nifty premium shrank to 65 points from 108 points, while the Bank Nifty basis contracted to 209 points from 344 points.

Global Movers:

Wall Street closed broadly higher on Monday, driven by sustained strength in mega-cap technology stocks and optimism surrounding the upcoming corporate earnings season. Investor sentiment was buoyed by a significant drop in crude oil prices, which alleviated some immediate inflationary fears, allowing buyers to step in and push the S&P 500 up for its third consecutive trading day. S&P 500 advanced 51 points (+0.66%) to close at 7,774. Dow Jones climbed 91 points (+0.18%) to settle at 51,268. Nasdaq Composite the tech-heavy index led the market advance, jumping 286 points (+1.05%) to close at 27,477. Brent crude dropped by roughly $2.64 (-2.58%) to settle at $99.61 per barrel, falling back below the critical $100 threshold as geopolitical risk premiums slightly moderated.

Stock Futures:

Kalyan Jewellers (KALYANKJIL) rallied 5.6% on Short Covering, shedding 1,414 contracts to reduce futures open interest by 7.6% to 17,312. The stock gained momentum ahead of the peak Indian festive consumption period, supported by expectations that domestic retail demand will remain resilient and absorb historic high gold rates. The futures premium expanded by 1.25 points to 4.5. A rising Put-Call Ratio (PCR) from 0.71 to 0.75 confirms expanding option flooring and short capitulation, backed by 1,133 new puts written against 982 calls.

Blue Star (BLUESTARCO) gained 5.1% via Short Covering, with derivative open interest edging down 0.6% to 20,806 contracts after shedding 135. Buying interest was supported by strength in high-margin Electro-Mechanical Projects (MEP) and rising data center cooling demand, helping counter near-term margin headwinds in the Room AC business. The futures discount narrowed by 23.9 points to -56.0. A rising PCR from 0.59 to 0.63 reflects improving option support, with 302 new puts written alongside 215 calls.

Avenue Supermarts (DMART) dropped 7.2% through Short Addition, expanding futures open interest by 18.8% to 32,881 contracts with 5,211 added. The sharp selloff followed a provisional Q2 update showing an 18.4% YoY standalone revenue increase, which failed to ease institutional concerns regarding margin quality. The basis flipped from a 28.8-point premium to a 3.9-point discount (-32.7 points). A sliding PCR from 0.74 to 0.69 confirms heavy tactical overhead call writing, as 12,017 new calls outpaced 7,898 puts, reinforcing sell-side pressure.

HCL Technologies (HCLTECH) fell 3.9% via Short Addition, pushing derivative open interest up 1.6% to 62,954 contracts, adding 972. Pre-earnings caution and broader institutional worries over structural AI-driven pricing deflation in traditional IT billing (~3.5% annual impact) weighed on the counter. The futures basis shifted from a 3.5-point premium to a 0.7-point discount (-4.2 points). A declining PCR from 0.71 to 0.69 highlights persistent overhead resistance, as 1,874 new calls outstripped 1,102 puts.

Put-Call Ratio Snapshot:

The Nifty Put-Call ratio (PCR) rose to 0.94 from 0.77 points, while the Bank Nifty PCR rose from 0.81 to 0.83 points.

Stock Option Volume highlights:

MAZDOCK (2,073.80, +0.5%) shows positive momentum; 7,394 calls top 1,807 puts (4.1 call-to-put, 0.56 PCR), eyeing 2,200/2,500 resistances over 2,000/2,050 supports for the current monthly F&O expiry, reflecting steady accumulation. SWIGGY (238.80, +0.3%) sees short build-ups; 17,134 calls beat 3,728 puts (4.6 call-to-put, 0.43 PCR), sliding to 220/230 supports under 260/300 resistances for the current monthly F&O expiry, signalling rising bearish conviction. CIPLA (1,335.50, -0.6%) marks short build-ups; 10,684 puts outpace 7,718 calls (1.4 put-to-call, 0.70 PCR), sliding to 1,200/1,220 supports under 1,400/1,450 resistances for the current monthly F&O expiry, highlighting active distribution pressure. GAIL (167.50, -2.2%) marks short build-ups; 8,493 puts edge 6,854 calls (1.2 put-to-call, 0.72 PCR), sliding to 160/165 supports under 175/180 resistances for the current monthly F&O expiry, underscoring localized buyer fatigue.

Stock Open Interest highlights:

BAJAJ-AUTO (10,024.10, -0.2%), POLICYBZR (976.20, -0.4%), and APLAPOLLO (2,099.80, -0.8%) hold Call positioning at 85.2%, 80.5%, and 79.2% of their annual maximums respectively, capping upside within expiry bounds (Support: 10,000, Resistance: 10,500; Support: 900, Resistance: 1,200; and Support: 2,000, Resistance: 2,200) under PCRs of 0.55, 0.45, and 0.52 that signal active short-accumulation, heavy short-accumulation, and steady short-accumulation sentiments respectively, while DMART (3,567.10, -6.4%) scales its maximum yearly Put capacity alongside JIOFIN (212, -0.2%) and LTF (263.8, -0.2%) which maintain Put accumulations at 85.4% and 83.3% of their annual ceilings, anchoring defensive downside floors (Support: 3,500, Resistance: 3,700; Support: 210, Resistance: 230; and Support: 240, Resistance: 280) where respective PCRs of 0.69, 0.68, and 0.82 validate severe long-liquidation, persistent short-accumulation, and active short-accumulation sentiments.

Participant-wise Open Interest Net Activity:

Index Futures witnessed an 8,208-contract turnover, heavily defined by foreign institutional accumulation absorbing a sharp retail long liquidation. Retail Clients dumped 7,779 contracts alongside a 429-contract reduction from DIIs. This retail distribution provided immediate liquidity for aggressive foreign buying, cleanly absorbed by FIIs (+7,783 contracts)—who captured roughly 95% of total session volume—supported by a minor 425-contract addition from Proprietary traders.

In Stock Futures, where 31,907 contracts changed hands, foreign funds executed a total and undisputed long sweep of the segment. FIIs took complete command of the single-stock long side by accumulating exactly 31,907 contracts—matching the session's total market turnover down to the single digit. This massive global demand wave cleanly swallowed a broad domestic liquidation campaign led by local Proprietary desks (-19,090 contracts), retail Clients (-10,134 contracts), and DIIs (-2,683 contracts).

Securities in Ban for Trade Date 06-October-2026: 

1. AMBUJACEM
2. BANDHANBNK
3. SAIL

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