Nifty extends gains for third day

S&P CNX -- Nifty -- extended its gains for third day in a row. Market made a gap up opening, as Union Minister Nitin Gadkari said the Centre decided to increase production of anti-viral drug Remdesivir and it will be provided to people at government's price. Market traded in green even as Fitch Solutions stated that India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall. The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022). Index continued the gaining monument till the end of the session, as Finance Ministry has released the second monthly installment of revenue deficit grant of Rs 9,871 crore to 17 states. With the release of the second installment, a total amount of Rs 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states. Finally, Nifty ended the trade above 14800 mark.

Most of the sectoral indices ended in green except PSU Bank. The top gainers from the F&O segment were National Aluminium Company, NMDC and SAIL. On the other hand, the top losers were Deepak Nitrite, Navin Fluorine International and SRF. 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 5.50% and reached 20.82. The 50 share Nifty up by 98.35 points or 0.67% to settle at 14,823.15.

Nifty May 2021 futures closed at 14860.00 (LTP) on Friday, at a premium of 36.85 points over spot closing of 14823.15, while Nifty June 2021 futures ended at 14886.05 (LTP), at a premium of 62.90 points over spot closing. Nifty May futures saw an addition of 2,051 units, taking the total open interest (Contracts) to 1,52,478 units. The near month derivatives contract will expire on May 27, 2021 (Provisional).

From the most active contracts, Tata Steel May 2021 futures traded at a premium of 2.70 points at 1186.30 (LTP) compared with spot closing of 1183.60. The numbers of contracts traded were 61,324 (Provisional).

HDFC May 2021 futures traded at a premium of 7.95 points at 2499.30 (LTP) compared with spot closing of 2491.35. The numbers of contracts traded were 24,425 (Provisional).

Reliance Industries May 2021 futures traded at a premium of 6.70 points at 1933.50 (LTP) compared with spot closing of 1926.80. The numbers of contracts traded were 23,873 (Provisional).

Hindalco May 2021 futures traded at a premium of 1.05 points at 402.00 (LTP) compared with spot closing of 400.95. The numbers of contracts traded were 23,137 (Provisional).

Vedanta May 2021 futures traded at a premium of 1.50 points at 282.80 (LTP) compared with spot closing of 281.30. The numbers of contracts traded were 22,961 (Provisional).

Among, Nifty calls, 15000 SP from the May month expiry was the most active call with a contraction of 866 units open interests. Among Nifty puts, 14000 SP from the May month expiry was the most active put with an addition of 4,559 units open interests. The maximum OI outstanding for Calls was at 15000 SP (34,948 units) and that for Puts was at 14000 SP (50,546 units). The respective Support and Resistance levels of Nifty are: Resistance 14,868.97 -- Pivot Point 14,817.23 -- Support -- 14,771.42.

The Nifty Put Call Ratio (PCR) finally stood at (1.52) for May month contract. The top five scrips with highest PCR on Page Industries (2.33), Mphasis (2.15), Tata Steel (1.35), PVR (1.33) and SAIL (1.14).

Among most active underlying, Tata Steel witnessed an addition of 2,953 units of Open Interest in the May month futures contract, JSW Steel witnessed an addition of 225 units of Open Interest in the May month futures contract, Vedanta witnessed an addition of 2,618 units of Open Interest in the May month futures contract, Hindalco witnessed an addition of 428 units of Open Interest in the May month futures contract and SAIL witnessed an addition of 836 units of Open Interest in the May month futures contract (Provisional).