Nifty finishes on higher note; surpasses 11,750 mark

NSE gauge -- Nifty50 -- gave strong performance by surging around a percent on Friday, surpassing its psychological level of 11,750, amid gains in banking and metal stocks. The day began on a positive note, as traders took support with the Reserve Bank of India’s (RBI) data showing that bank credit rose by 14.19 percent to Rs 96.45 lakh crore while deposits grew 10.60 percent to Rs 125.30 lakh crore in the first fortnight ended on April 12. In the year ago fortnight, deposits were at Rs 113.29 lakh crore and advances stood at Rs 84.46 lakh crore. Sentiments remained optimistic with a private report stating that private equity (PE) and venture capital (VC) investments hit an all-time high of $7 billion in March, as high-voltage action by global investors like Canada’s Brookfield and Singapore’s GIC on street continues unabated despite the ongoing general elections.

Buying got intensified during late afternoon deals, buoyed with IBBI Chairperson M S Sahoo’s statement that resolution plans under IBC have yielded 200 per cent of liquidation value for creditors in addition to rescuing viable firms. He also noted that this is significantly better as compared to the previous regime which yielded a recovery of 25 per cent for creditors through a process which took about five years and entailed a cost of 9 per cent. Traders got comfort with Governor Shaktikanta Das’ statement the central bank is aligning its framework to help the market intermediaries provide financial access to the bottom- of-the-pyramid.

All sectoral indices ended in green on NSE except Realty, Auto and Media. The top gainers from the F&O segment were Tata Steel, Aurobindo Pharma and Jindal Steel & Power. On the other hand, the top losers were PC Jeweller, Piramal Enterprises and Reliance Power. In the index option segment, maximum OI continues to be seen in the 11,800-12,200 calls and 10,800-11,200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 6.52% and reached 21.71. The 50-share Nifty was up by 112.85 points 0.97% to settle at 11,754.65.

Nifty May 2019 futures closed at 11813.50 on Friday, at a premium of 58.85 points over spot closing of 11754.65, while Nifty June 2019 futures ended at 11851.70, at a premium of 97.05 points over spot closing. Nifty May futures saw an addition of 0.32 million (mn) units, taking the total outstanding open interest (OI) to 19.54 mn units. The near month derivatives contract will expire on May 30, 2019.

From the most active contracts, Tata Steel May 2019 futures traded at a premium of 1.00 points at 548.45 compared with spot closing of 547.45. The numbers of contracts traded were 53,675.

Yes Bank May 2019 futures traded at a premium of 0.90 points at 238.70 compared with spot closing of 237.80. The numbers of contracts traded were 35,864.

Axis Bank May 2019 futures traded at a premium of 9.15 points at 766.55 compared with spot closing of 757.40. The numbers of contracts traded were 32,548.

Maruti Suzuki India May 2019 futures traded at a premium of 50.65 points at 6895.05 compared with spot closing of 6844.40. The numbers of contracts traded were 29,469.

ICICI Bank May 2019 futures traded at a premium of 2.35 points at 409.55 compared with spot closing of 407.20. The numbers of contracts traded were 29,262.

Among Nifty calls, 11,700 SP from the May month expiry was the most active call with an addition of 0.03 million open interests. Among Nifty puts, 11,700 from the May month expiry was the most active put with an addition of 0.08 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (1.27mn) and that for Puts was at 11,000 SP (2.27 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,791.12 ---- Pivot Point 11,726.43 --- Support --- 11,689.97.

The Nifty Put Call Ratio (PCR) finally stood at 1.23 for May month contract. The top five scrips with highest PCR on OI were Mindtree (2.14), Ajanta Pharma (1.89), Bosch (1.75), Gujarat State Fertilizers and Chemicals (1.66) and Chennai Petroleum Corporation (1.50).

Among most active underlying, Tata Steel witnessed an addition of 1.06 million units of Open Interest in the May month futures contract, followed by Axis Bank witnessing an addition of 0.46 million units of Open Interest in the May month contract, Reliance Industries witnessed a contraction of 0.23 million units of Open Interest in the May month contract, Maruti Suzuki India witnessed an addition of 0.08 million units of Open Interest in the May month contract and Yes Bank witnessed an addition of 0.75 million units of Open Interest in the May month future contract.