Nifty ends in negative territory

NSE gauge -- Nifty50 ended in red on Friday and slided below its crucial 14350 levels during the day. Market made negative start, as S&P Global Ratings said the Indian economy is projected to grow at 11 per cent in the current fiscal, but flagged the substantial impact of broader lockdowns on the economy. In its report on Asia-Pacific Financial Institutions, S&P said the control of COVID-19 remains a key risk for the economy. New infections have spiked in recent weeks and the country is in the middle of a second pandemic wave. However, market entered into green territory for little time, as Finance Minister Nirmala Sitharaman said the industry is in recovery mode and several Budget proposals are on course, including disinvestment, despite a fresh wave of coronavirus infections and local lockdowns. But index failed to hold gains and again entered into red zone, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has revised down India’s FY22 real GDP growth forecast to 10.1 per cent, from earlier projection of 10.4 per cent, citing the second wave of COVID-19 infections and slower pace of vaccination. At a time when large parts of the country are experiencing tremendous pressure on medical infrastructure, it expects the second wave to start subsiding by mid-May.

Most of the sectoral indices ended in red except PSU Bank, Media and Financial Services. The top gainers from the F&O segment were Muthoot Finance, PVR and Cadila Healthcare. On the other hand, the top losers were Britannia, Escorts and Industower. 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 1.45% and reached 22.69. The 50 share Nifty down by 64.80 points or 0.45% to settle at 14,341.35.

Nifty April 2021 futures closed at 14333.00 (LTP) on Friday, at a discount of 8.35 points over spot closing of 14341.35, while Nifty May 2021 futures ended at 14385.00 (LTP), at a premium of 43.65 points over spot closing. Nifty April futures saw a contraction of 1,893 units, taking the total open interest (OI) to1,38,315 units. The near month derivatives contract will expire on April 29, 2021 (Provisional).

From the most active contracts, ICICI Bank April 2021 futures traded at a premium of 0.85 points at 568.35 (LTP) compared with spot closing of 567.50. The numbers of contracts traded were 38,752 (Provisional).

Reliance Industries April 2021 futures traded at a discount of 1.30 points at 1902.05 (LTP) compared with spot closing of 1903.35. The numbers of contracts traded were 31,068 (Provisional).

Axis Bank April 2021 futures traded at a premium of 1.20 points at 666.15 (LTP) compared with spot closing of 664.95. The numbers of contracts traded were 22,777 (Provisional).

Tata Steel April 2021 futures traded at a premium of 0.90 points at 925.45 (LTP) compared with spot closing of 924.55. The numbers of contracts traded were 19,886 (Provisional).

Cadila Healthcare April 2021 futures traded at a premium of 1.50 points at 578.00 (LTP) compared with spot closing of 576.50. The numbers of contracts traded were 17,858 (Provisional).

Among, Nifty calls, 14500 SP from the April month expiry was the most active call with an addition of 7,086 units open interests. Among Nifty puts, 14000 SP from the April month expiry was the most active put with an addition of 8,855 units open interests. The maximum OI outstanding for Calls was at 15000 SP (69,835 units) and that for Puts was at 14000 SP (73,559 units). The respective Support and Resistance levels of Nifty are: Resistance 14,443.90 -- Pivot Point 14,358.60 -- Support -- 14,256.05.

The Nifty Put Call Ratio (PCR) finally stood at (1.09) for April month contract. The top five scrips with highest PCR on PVR (1.23), Indigo (1.09), Bata india (1.09), Wipro (1.08) and JSW Steel (0.96).

Among most active underlying, Tata Steel witnessed an addition of 742 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 5,586 units of Open Interest in the April month futures contract, Cadila Healthcare witnessed an addition of 907 units of Open Interest in the April month futures contract, JSW Steel witnessed a contraction of 120 units of Open Interest in the April month futures contract and Axis Bank witnessed an addition of 1,512 units of Open Interest in the April month futures contract (Provisional).