Nifty continues gaining momentum for fourth day

10 May 2021 Evaluate

The local benchmark -- Nifty -- continued its gaining momentum for fourth day. Market made gap-up opening after Reserve Bank of India’s (RBI’s) data showed that country’s foreign exchange reserves swelled by $3.913 billion to reach $588.02 billion in the week ended April 30, 2021. In the previous week ended April 23, the reserves had risen by $1.701 billion to $584.107 billion. The forex kitty had touched a lifetime high of $590.185 billion in the week ended January 29, 2021. Market maintained its gains, as Union Health Ministry said more than 72 lakh COVID-19 vaccine doses are still available with states and union territories, while over 46 lakh doses will be received by them within the next three days. Index continued its upward momentum till the end, as the data of the commerce ministry showed continuing a positive growth, India's exports grew by 80 per cent to $7.04 billion during the first week of this month. Exports during May 1-7 last year stood at $3.91 billion and $6.48 billion in the same week of May 2019. Traders overlooked report that Fitch Ratings said the shock to economic activity from the latest wave of COVID-19 pandemic will be less severe than the one in 2020, but recovery is likely to be delayed as economic activity dropped in April-May. Finally, Nifty ended the Monday’s trade with the gains of over half a percent.

All the sectoral indices ended in green. The top gainers from the F&O segment were BHEL, NMDC and Torrent Power. On the other hand, the top losers were LTI, Navin Fluorine International and Coforge. 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 2.86% and reached 20.23. The 50 share Nifty up by 119.20 points or 0.80% to settle at 14,942.35.

Nifty May 2021 futures closed at 14992.00 (LTP) on Monday, at a premium of 49.65 points over spot closing of 14942.35, while Nifty June 2021 futures ended at 15015.65 (LTP), at a premium of 73.30 points over spot closing. Nifty May futures saw an addition of 2,849 units, taking the total open interest (Contracts) to 1,53,243 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 4.05 points at 1222.55 (LTP) compared with spot closing of 1218.50. The numbers of contracts traded were 33,140 (Provisional).

Reliance Industries May 2021 futures traded at a premium of 10.90 points at 1938.00 (LTP) compared with spot closing of 1927.10. The numbers of contracts traded were 29,511 (Provisional).

SBIN May 2021 futures traded at a premium of 1.85 points at 364.15 (LTP) compared with spot closing of 362.30. The numbers of contracts traded were 27,468 (Provisional).

Tata Motors May 2021 futures traded at a premium of 1.75 points at 316.10 (LTP) compared with spot closing of 314.35. The numbers of contracts traded were 23,916 (Provisional).

Bandhan Bank May 2021 futures traded at a premium of 1.15 points at 295.50 (LTP) compared with spot closing of 294.35. The numbers of contracts traded were 21,047 (Provisional).

Among, Nifty calls, 15000 SP from the May month expiry was the most active call with an addition of 1,142 units open interests. Among Nifty puts, 14500 SP from the May month expiry was the most active put with an addition of 4,140 units open interests. The maximum OI outstanding for Calls was at 15000 SP (35,802 units) and that for Puts was at 14000 SP (59,253 units). The respective Support and Resistance levels of Nifty are: Resistance 14,975.33 -- Pivot Point 14,933.92 -- Support -- 14,900.93.

The Nifty Put Call Ratio (PCR) finally stood at (1.61) for May month contract. The top five scrips with highest PCR on Mphasis (2.03), PVR (1.38), Tata Steel (1.30), IRCTC (1.02) and Page Industries (1.00).

Among most active underlying, Tata Steel witnessed an addition of 1,324 units of Open Interest in the May month futures contract, Tata Motors witnessed an addition of 2,305 units of Open Interest in the May month futures contract, Cadila Healthcare witnessed an addition of 944 units of Open Interest in the May month futures contract, Hindalco witnessed an addition of 649 units of Open Interest in the May month futures contract and NMDC witnessed an addition of 810 units of Open Interest in the May month futures contract (Provisional).

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