The local benchmark -- Nifty -- ended the Monday’s session in green with gains of a percent. Market made positive start with Union Minister Nitin Gadkari’s statement that the pandemic has caused a slowdown in India but the country's inherent resilience and capability will help it transform into a new India with a faster growth path fuelled by infrastructure. Further, market extended its gains, as RBI’s data stated that the foreign exchange reserves rose by $1.193 billion to reach $582.406 billion in the week ended April 16. In the previous week ended April 9, the forex kitty had surged by $4.344 billion to $581.213 billion. Market remained higher till the end of the session, as the Finance Ministry has relaxed the spending guidelines to enable ministries and departments to undertake capital expenditure totalling Rs 44,000 crore envisaged in the budget for 2021-22, to boost the economy grappling with the fresh COVID-19 wave. According to an office memorandum (OM) issued by the Finance Ministry, the monthly/quarterly expenditure plan (MEP/QEP) ceilings and restrictions will not apply for expenditure under the capital heads under the budget. Finally, Nifty ended the session above 14450 mark.
Most of the sectoral indices ended in green except Pharma. The top gainers from the F&O segment were SAIL, ICICI Prudential Life Insurance and ICICI Lombard General Insurance. On the other hand, the top losers were Cipla, Dabur and M&MFIN. 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 increased by 3.54% and reached 23.50. The 50 share Nifty up by 143.65 points or 1.00% to settle at 14,485.00.
Nifty April 2021 futures closed at 14487.20 (LTP) on Monday, at a premium of 2.20 points over spot closing of 14485.00, while Nifty May 2021 futures ended at 14540.00(LTP), at a premium of 55.00 points over spot closing. Nifty April futures saw an addition of 1,945 units, taking the total open interest (Contracts) to 1,38,293 units. The near month derivatives contract will expire on April 29, 2021 (Provisional).
From the most active contracts, ICICI Bank April 2021 futures traded flat with spot closing of 588.70. The numbers of contracts traded were 61,896 (Provisional).
Reliance Industries April 2021 futures traded at a discount of 0.80 points at 1937.20 (LTP) compared with spot closing of 1938.00. The numbers of contracts traded were 54,039 (Provisional).
HCL Tech April 2021 futures traded at a discount of 14.00 points at 916.00 (LTP) compared with spot closing of 930.00. The numbers of contracts traded were 27,888 (Provisional).
Axis Bank April 2021 futures traded at a premium of 0.35 points at 699.85 (LTP) compared with spot closing of 699.50. The numbers of contracts traded were 25,597 (Provisional).
SBIN April 2021 futures traded at a discount of 0.05 points at 344.75 (LTP) compared with spot closing of 344.80. The numbers of contracts traded were 24,192 (Provisional).
Among, Nifty calls, 14600 SP from the April month expiry was the most active call with a contraction of 3,307 units open interests. Among Nifty puts, 14500 SP from the April month expiry was the most active put with an addition of 15,307 units open interests. The maximum OI outstanding for Calls was at 15000 SP (72,847 units) and that for Puts was at 14000 SP (80,904 units). The respective Support and Resistance levels of Nifty are: Resistance 14,554.57 -- Pivot Point 14,487.93 -- Support -- 14,418.37.
The Nifty Put Call Ratio (PCR) finally stood at (1.24) for April month contract. The top five scrips with highest PCR on PVR (1.27), Indigo (1.16), SBI Life (1.13), Bata india (1.11) and JSW Steel (1.08).
Among most active underlying, ICICI Bank witnessed an addition of 5,129 units of Open Interest in the April month futures contract, Tata Steel witnessed an addition of 1,140 units of Open Interest in the April month futures contract, Reliance Industries witnessed a contraction of 4,111 units of Open Interest in the April month futures contract, SBIN witnessed an addition of 995 units of Open Interest in the April month futures contract and Axis Bank witnessed an addition of 2,189 units of Open Interest in the April month futures contract (Provisional).
