Nifty ends in green territory

NSE benchmark index Nifty ended the session in green territory on Tuesday. Market made cautious start, but soon gained momentum, as India has attracted record total FDI inflow for the first ten months of a financial year in 2020-21. Accordingly, the inflow rose to $72.12 billion during April to January, 2021, 15 per cent higher as compared to the first ten months of 2019-20, when it stood at $62.72 billion. The FDI equity inflow grew by 28 per cent in the first ten months of FY 2020-21 ($54.18 billion) compared to the year ago period ($42.34 billion). Market traded higher with Niti Aayog CEO Amitabh Kant’s statement that India today is well-positioned to become a global leader in Artificial Intelligence (AI) and there is a need to adopt it across all sectors. He further said the government has a crucial role to play in positioning India as the 'tech garage' of the world.

However, index trimmed most of its gains in late afternoon but managed to end the session in positive zone, as finance ministry said economic recovery remains ‘resilient’ with sustained improvement in a majority of high-frequency indicators, including record GST collections and exports, despite a surge in Covid-19 cases in recent weeks. Finally, Nifty ended the session above 14650 mark.

Most of the sectoral indices ended in green except Bank, Media and PSU Bank. The top gainers from the F&O segment were Adani Ports, SRF and Granules India. On the other hand, the top losers were Mahanagar Gas, Trent and PVR. In the index option segment, maximum OI continues to be seen in the 14700 - 16700 calls and 13,900 - 14,600 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 1.76% and reached 20.84. The 50 share Nifty up by 45.70 points or 0.31% to settle at 14,683.50.

Nifty April 2021 futures closed at 14763.50 (LTP) on Tuesday, at a premium of 80.00 points over spot closing of 14683.50, while Nifty May 2021 futures ended at 14815.00 (LTP), at a premium of 131.50 points over spot closing. Nifty April futures saw a contraction of 567 units, taking the total open interest (Contracts) to 1,42,695 units. The near month derivatives contract will expire on April 29, 2021.

From the most active contracts, Reliance Industries April 2021 futures traded at a premium of 12.80 points at 1999.00 (LTP) compared with spot closing of 1986.20. The numbers of contracts traded were 28,278 (Provisional).

Adani Ports April 2021 futures traded at a premium of 4.15 points at 854.00 (LTP) compared with spot closing of 849.85. The numbers of contracts traded were 25,554 (Provisional).

ICICI Bank April 2021 futures traded at a premium of 3.65 points at 571.00 (LTP) compared with spot closing of 567.35. The numbers of contracts traded were 21,544 (Provisional).

Tata Motors April 2021 futures traded at a premium of 1.85 points at 309.85 (LTP) compared with spot closing of 308.00. The numbers of contracts traded were 15,850 (Provisional).

SBIN April 2021 futures traded at a premium of 2.30 points at 353.25 (LTP) compared with spot closing of 350.95. The numbers of contracts traded were 15,603 (Provisional).

Among, Nifty calls, 15000 SP from the April month expiry was the most active call with a contraction of 897 units open interests. Among Nifty puts, 14000 SP from the April month expiry was the most active put with an addition of 529 units open interests. The maximum OI outstanding for Calls was at 15000 SP (28,595 units) and that for Puts was at 14000 SP (52,032 units). The respective Support and Resistance levels of Nifty are: Resistance 14,783.77 -- Pivot Point 14,678.83 -- Support -- 14,578.57.

The Nifty Put Call Ratio (PCR) finally stood at (1.62) for April month contract. The top five scrips with highest PCR on BOSCH (1.46), Siemens (1.35), Amara Raja Batteries (1.32), PVR (1.22) and Sbi Life Insurance Company (1.16).

Among most active underlying, Adani Ports witnessed an addition of 123 units of Open Interest in the April month futures contract followed Adani Enterprises witnessed an addition of 236 units of Open Interest in the April month futures contract, Tata Motors witnessed an addition of 324 units of Open Interest in the April month futures contract, Tata Steel witnessed an addition of 408 units of Open Interest in the April month futures contract and Tata Chemical witnessed an addition of 529 units of Open Interest in the April month futures contract (Provisional).