After previous session’s bloodbath, the local benchmark -- Nifty -- ended the Tuesday’s trade with the gains of above a percent. Market made cautious start but soon added gains with private report said that Indians are among the most optimistic globally in terms of their expectations for a return to pre-COVID normal, with over 70 per cent expecting it to happen in less than a year. Importantly, the survey was conducted just before the COVID-19 pandemic was seen moving towards a new peak in India and some other countries. Further, market maintained its gains in green territory even after weak macro-economic data. Industrial production declined for the second month in a row in February at a faster rate of 3.6 per cent than 0.9 per cent in the previous month. The retail price inflation rate rose to a four-month high of 5.52 per cent in March due to upward movement in core as well as food rates, barring vegetables and cereals. In late afternoon session, market added more gains to touch intraday high point, as Reserve Bank of India (RBI) data showed that bank credit grew 5.56 per cent to Rs 109.51 lakh crore, while deposits rose 11.4 per cent to Rs 151.13 lakh crore in the financial year ended March 31, 2021. Finally, Nifty ended the session above 14500 mark.
Most of the sectoral indices ended in green except IT and Pharma. The top gainers from the F&O segment were SAIL, M&M and Federal Bank. On the other hand, the top losers were LTTS, Coforge and Dr Lalpath Lab. 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 11.02% and reached 20.46. The 50 share Nifty up by 194.00 points or 1.36% to settle at 14,504.80.
Nifty April 2021 futures closed at 14556.00 (LTP) on Tuesday, at a premium of 51.20 points over spot closing of 14504.80, while Nifty May 2021 futures ended at 14602.70 (LTP), at a premium of 97.90 points over spot closing. Nifty April futures saw a contraction of 967 units, taking the total open interest (OI) to 1,48,405 units. The near month derivatives contract will expire on April 29, 2021 (Provisional).
From the most active contracts, Infosys April 2021 futures traded at a premium of 0.00 points at 1402.85 (LTP) compared with spot closing of 1402.85. The numbers of contracts traded were 37,531(Provisional).
TCS April 2021 futures traded at a discount of 0.90 points at 3119.10 (LTP) compared with spot closing of 3120.00. The numbers of contracts traded were 31,255 (Provisional).
Dr Reddy April 2021 futures traded at a premium of 21.50 points at 4820.95 (LTP) compared with spot closing of 4799.45. The numbers of contracts traded were 26,246 (Provisional).
Reliance Industries April 2021 futures traded at a premium of 9.15 points at 1941.45 (LTP) compared with spot closing of 1932.30. The numbers of contracts traded were 24,587 (Provisional).
ICICI Bank April 2021 futures traded at a premium of 2.30 points at 561.90 (LTP) compared with spot closing of 559.60. The numbers of contracts traded were 22,393(Provisional).
Among, Nifty calls, 15000 SP from the April month expiry was the most active call with a contarction of 1,022 units open interests. Among Nifty puts, 14000 SP from the April month expiry was the most active put with an addition of 7,111 units open interests. The maximum OI outstanding for Calls was at 15000 SP (32,527 units) and that for Puts was at 14000 SP (48,858 units). The respective Support and Resistance levels of Nifty are: Resistance 14,597.50 -- Pivot Point 14,436.20 -- Support -- 14,343.50.
The Nifty Put Call Ratio (PCR) finally stood at (1.40) for April month contract. The top five scrips with highest PCR on Indigo (1.10), JSW Steel (1.07), Bajaj Finserv (1.07), Sbi Life Insurance Company (1.05) and Amara Raja Batteries (0.94).
Among most active underlying, Tata Motors witnessed an addition of 418 units of Open Interest in the April month futures contract followed Adani Ports witnessed an addition of 1,711 units of Open Interest in the April month futures contract, Infosys witnessed an addition of 2,554 units of Open Interest in the April month futures contract, TCS witnessed an addition of 2,899 units of Open Interest in the April month futures contract and Tata Steel witnessed a contraction of 120 units of Open Interest in the April month futures contract (Provisional).
