Nifty trade jubilantly; surpasses 11,400-mark

NSE gauge -- Nifty50 -- gave powerful performance by surging over a percent on Friday, surpassing its psychological level of 11,400. Market kick started the session with a gap-up opening as traders remained optimistic with report that Finance Commission held discussions with the finance ministry on fiscal and economic management as well as rationalisation of expenditure related to centrally sponsored schemes. The 15th Finance Commission observed that the GDP numbers suggest continued high growth over the medium term even though there have been fluctuations within the overall global trend. Sentiment on the street also improved with a report that the ongoing trade war between the US and China will help India tap export opportunities in both the countries in areas such as garments, agriculture, automobile and machinery.

Market continued its jubilant run also in the afternoon session and touched its intraday high, taking support from a private report that bilateral India-Mexico trade crossing $ 10.15 billion in 2018, India-Mexico Business Chamber (IMBC) has been inaugurated with the basic objective to strengthen the growing India Mexico economic and commercial linkages. Local investors also cheered with Union Commerce Minister Suresh Prabhu’s statement that there is a need to facilitate strategic investments based on clear sectorial analysis in a bid to increase India’s Gross Domestic Product (GDP) growth. Traders ignored credit rating agency Ind-Ra’s latest report stating that the rise in US-China trade tensions could lead to dumping of Chinese goods and weaker flow of foreign investment from the United States to emerging markets, including India.

All sectoral indices ended in green on NSE except Pharma IT and Metal. The top gainers from the F&O segment were Zee Entertainment Enterprises, Tata Global Beverages and Kaveri Seed Company. On the other hand, the top losers were Aurobindo Pharma, PC Jeweller and Ujjivan Financial Services. In the index option segment, maximum OI continues to be seen in the 11,900-12,100 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 1.04% and reached 28.07. The 50-share Nifty was up by 150.05 points or 1.33% to settle at 11,407.15.

Nifty May 2019 futures closed at 11425.80 on Friday, at a premium of 18.65 points over spot closing of 11407.15, while Nifty June 2019 futures ended at 11460.55, at a premium of 53.40 points over spot closing. Nifty May futures saw an addition of 0.57 million (mn) units, taking the total outstanding open interest (OI) to 16.03 mn units. The near month derivatives contract will expire on May 30, 2019.

From the most active contracts, Yes Bank May 2019 futures traded at a premium of 0.30 points at 134.40 compared with spot closing of 134.10. The numbers of contracts traded were 61,768.

Bajaj Finance May 2019 futures traded at a premium of 17.95 points at 3312.95 compared with spot closing of 3295.00. The numbers of contracts traded were 43,492.

Reliance Industries May 2019 futures traded at a premium of 1.70 points at 1270.70 compared with spot closing of 1269.00. The numbers of contracts traded were 30,480.

ICICI Bank May 2019 futures traded at a discount of 0.70 points at 390.45 compared with spot closing of 391.15. The numbers of contracts traded were 24,525.

Bajaj Auto May 2019 futures traded at a discount of 7.75 points at 3039.15 compared with spot closing of 3046.90. The numbers of contracts traded were 23,165.

Among Nifty calls, 11,500 SP from the May month expiry was the most active call with a contraction of 0.17 million open interests. Among Nifty puts, 11,200 from the May month expiry was the most active put with an addition of 0.09 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (3.51mn) and that for Puts was at 11,000 SP (3.35 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,468.92 ---- Pivot Point 11,364.38 --- Support --- 11,302.62.

The Nifty Put Call Ratio (PCR) finally stood at 0.94 for May month contract. The top five scrips with highest PCR on OI were Page India (1.80), Bosch (1.79), Mindtree (1.61), Petronet LNG (1.57) and Just Dail (1.42).

Among most active underlying, Bajaj Finance witnessed an addition of 0.29 million units of Open Interest in the May month futures contract, followed by Reliance Industries witnessing an addition of 0.09 million units of Open Interest in the May month contract, State Bank of India witnessed a contraction of 4.35 million units of Open Interest in the May month contract, Yes Bank witnessed a contraction of 6.80 million units of Open Interest in the May month contract and Bajaj Auto witnessed an addition of 0.23 million units of Open Interest in the May month future contract.