The local benchmark -- Nifty -- ended the session in green zone. Index made a positive start with report that the Finance Ministry has waived permissions required from any government departments for customs clearance of COVID-related relief material imported by the Indian Red Cross Society. However, market trimmed its gains, but continues to trade in positive zone till the end of the session despite domestic rating agency -- Icra in its latest report has said the ongoing second wave of COVID-19 will dampen the pace of recovery for corporate India and the contact-intensive sectors will be hit the most. However, it stated the impact of the second wave on many sectors is set to be lower than the first because the lockdowns are less widespread and stringent as of now as against the strong nationwide lockdown last year which brought all economic activities to a grinding halt. Besides, in order to guard domestic players from cheap shipments, India has imposed anti-dumping duty on imports of a chemical used in foam making from four regions, including the EU and Saudi Arabia, for five years. Traders took support as government allowed import of 17 medical devices for three months with mandatory declarations immediately after custom clearance and before sale of such products in the domestic market. To meet rising demand in the ongoing pandemic, the government has allowed import of medical devices like nebulizer, oxygen concentrators, oxygen cannister, oxygen cylinders, oxygen generators and ventilators.
Traders were seen piling positions in Metal, Pharma and PVT Bank sector while selling was witnessed in Media, IT and FMGC sector stocks. The top gainers from the F&O segment were JSW Steel, Tata Steel and SAIL. On the other hand, the top losers were Canara Bank, Cummins India and Indiabulls Housing Finance. 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 3.21% and reached 23.31. The 50 share Nifty up by 30.35 points or 0.20% to settle at 14,894.90.
Nifty May 2021 futures closed at 14920.00 (LTP) on Thursday, at a premium of 25.10 points over spot closing of 14894.90, while Nifty June 2021 futures ended at 14955.00 (LTP), at a premium of 60.10 points over spot closing. Nifty May futures saw an addition of 35,246 units, taking the total outstanding open interest (Contracts) to 1,33,095 units. The near month derivatives contract will expire on May 27, 2021(Provisional).
From the most active contracts, Reliance Industries May 2021 futures traded at a premium of 7.75 points at 2027.75 (LTP) compared with spot closing of 2020.00. The numbers of contracts traded were 51,783 (Provisional).
ICICI Bank May 2021 futures traded at a premium of 0.95 points at 621.95 (LTP) compared with spot closing of 621.00. The numbers of contracts traded were 34,305 (Provisional).
HDFC Bank May 2021 futures traded at a discount of 0.65 points at 1471.00 (LTP) compared with spot closing of 1471.65. The numbers of contracts traded were 29,960 (Provisional).
Tata Steel May 2021 futures traded at a premium of 5.50 points at 1040.50 (LTP) compared with spot closing of 1035.00. The numbers of contracts traded were 27,314 (Provisional).
SBIN May 2021 futures traded at a premium of 1.95 points at 359.40 (LTP) compared with spot closing of 357.45. The numbers of contracts traded were 26,528 (Provisional).
Among, Nifty calls, 15000 SP from the May month expiry was the most active call with a contraction of 27 units open interests. Among Nifty puts, 14900 SP from the May month expiry was the most active put with an addition of 30,981units open interests. The maximum OI outstanding for Calls was at 15000 SP (82,252 units) and that for Puts was at 14500 SP (73,594 units). The respective Support and Resistance levels of Nifty are: Resistance 15,021.35 -- Pivot Point 14,917.90 -- Support -- 14,791.45
The Nifty Put Call Ratio (PCR) finally stood at (1.70) for May month contract. The top five scrips with highest PCR on Mphasis (5.96), Shree Cement (2.75), LTI (1.77), Gujarat Gas (1.75) and PVR (1.51).
Among most active underlying, Tata Steel witnessed an addition of 4,444 units of Open Interest in the May month futures contract, JSW Steel witnessed an addition of 2,200 units of Open Interest in the May month futures contract, Bajaj Finance witnessed an addition of 3,487 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 8,916 units of Open Interest in the May month futures contract and SBIN witnessed an addition of 5,629 units of Open Interest in the May month futures contract (Provisional).
