Nifty gives powerful performance on Friday; surpasses 11,800 mark

Domestic index S&P CNX Nifty gave powerful performance by surging over one and half percent on Friday, surpassing its psychological level of 11,800 amid strong foreign fund inflows and positive global cues. The day began on a positive note, as sentiments remained positive with the euphoria surrounding Prime Minister Narendra Modi's landslide victory in the general election drove the bull-run. Market-men also took support with Fitch Ratings’ statement that the Bharatiya Janata Party’s (BJP) apparent landslide victory is likely to improve business sentiment and outlook for private investment. It said that from a credit rating perspective, Fitch would focus on the extent of the next government's efforts to improve India's weak fiscal finances. Traders remain energized as India Inc. has welcomed the thumping majority accorded to the Bharatiya Janata Party (BJP) in Lok Sabha Elections 2019. BJP and its allies are leading in 355 seats while the saffron party alone is leading in 305 seats.

Market continued their rally mood to reach at fresh intraday high points in last leg of trade, taking support with a report that with poll uncertainty behind, investors will now be keen to know the future course of action to boost economy, solution to ease liquidity situation and measures to address financial sector dislocation. Traders also took note of Moody's statement that its credit view on India will depend on policies of the new government and expressed hope that the country would continue with its fiscal consolidation plan.

All sectoral indices ended in green on NSE. The top gainers from the F&O segment were The India Cements, Bank of India and Bharat Electronics. On the other hand, the top losers were Just Dial, Jet Airways and Sun TV Network. In the index option segment, maximum OI continues to be seen in the 12,400-12,600 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 15.14% and reached 16.46. The 50-share Nifty was up by 187.05 points or 1.60% to settle at 11,844.10.

Nifty May 2019 futures closed at 11869.40 on Friday, at a premium of 25.30 points over spot closing of 11844.10, while Nifty June 2019 futures ended at 11906.65, at a premium of 62.55 points over spot closing.  Nifty May futures saw an addition of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 17.35 mn units. The near month derivatives contract will expire on May 30, 2019.

From the most active contracts, ICICI Bank May 2019 futures traded at a discount of 2.25 points at 430.25 compared with spot closing of 432.50. The numbers of contracts traded were 47,084.

Reliance Industries May 2019 futures traded at a premium of 2.55 points at 1340.55 compared with spot closing of 1338.00. The numbers of contracts traded were 38,074.

State Bank of India May 2019 futures traded at a discount of 0.40 points at 355.60 compared with spot closing of 356.00. The numbers of contracts traded were 29,896.

Yes Bank May 2019 futures traded at a premium of 0.50 points at 141.60 compared with spot closing of 141.10. The numbers of contracts traded were 29,760.

HDFC Bank May 2019 futures traded at a premium of 7.15 points at 2380.05 compared with spot closing of 2372.90. The numbers of contracts traded were 23,855.  

Among Nifty calls, 12,000 SP from the May month expiry was the most active call with a contraction of 1.08 million open interests. Among Nifty puts, 11,700 from the May month expiry was the most active put with an addition of 1.07 million open interests. The maximum OI outstanding for Calls was at 12,500 SP (4.72 mn) and that for Puts was at 11,000 SP (4.01 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,916.03 ---- Pivot Point 11,787.07 --- Support --- 11,715.13.

The Nifty Put Call Ratio (PCR) finally stood at 0.85 for May month contract. The top five scrips with highest PCR on OI were Shree Cement (4.00), Page India (1.67), Mindtree (1.39), Titan (1.38) and Bosch (1.34).

Among most active underlying, State Bank of India witnessed a contraction of 0.02 million units of Open Interest in the May month futures contract, followed by Reliance Industries witnessing a contraction of 0.44 million units of Open Interest in the May month contract, ICICI Bank witnessed a contraction of 8.98 million units of Open Interest in the May month contract, Maruti Suzuki witnessed a contraction of 0.06 million units of Open Interest in the May month contract and HDFC Bank witnessed a contraction of 0.18 million units of Open Interest in the May month future contract.