Local benchmark S&P CNX -- Nifty -- snapped four-day winning streak on Tuesday. Market made a gap down opening, as rating agency Crisil warned India's economic growth may slip to 8.2 per cent in FY22 if the second wave peaks in end of June, maintaining its baseline estimate of 11 per cent uptick in activity. Market continued its weak trade, as Fitch Ratings said that there are growing indications that India's latest wave of Covid-19 infections will add to risks among financial institutions (FIs) by sapping near-term momentum from the economic recovery. Measures announced by the Reserve Bank of India (RBI) on May 5 will provide some relief to FIs in the next 12 to 24 months, but largely at the expense of postponing the recognition and resolution of underlying asset-quality problems. Adding more pessimism, State Bank of India’s (SBI)’s economic research arm warned that a huge buildup of carry positions could negatively impact the exchange rate and lead to inflation. Traders failed to took support, as India continues to witness decline in the number of daily Covid-19 cases. Finally, Nifty ended the trade with cut of above half a percent.
Most of the sectoral indices ended in red except Auto, Media and Realty. The top gainers from the F&O segment were BHEL, Coal India and Concor. On the other hand, the top losers were Jindal Steel & Power, JSW Steel and SAIL. 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 1.95% and reached 19.83. The 50 share Nifty down by 91.60 points or 0.61% to settle at 14,850.75.
Nifty May 2021 futures closed at 14874.55 (LTP) on Tuesday, at a premium of 23.80 points over spot closing of 14850.75, while Nifty June 2021 futures ended at 14903.00 (LTP), at a premium of 52.25 points over spot closing. Nifty May futures saw an addition of 13,319 units, taking the total open interest (Contracts) to 1,62,587 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 2.50 points at 1232.50 (LTP) compared with spot closing of 1230.00. The numbers of contracts traded were 48,640 (Provisional).
SBIN May 2021 futures traded at a premium of 0.60 points at 364.70 (LTP) compared with spot closing of 364.10. The numbers of contracts traded were 25,360 (Provisional).
Tata Motors May 2021 futures traded at a premium of 0.95 points at 315.40 (LTP) compared with spot closing of 314.45. The numbers of contracts traded were 24,684 (Provisional).
BHEL May 2021 futures traded at a premium of 0.55 points at 73.55 (LTP) compared with spot closing of 73.00. The numbers of contracts traded were 24,521 (Provisional).
Reliance Industries May 2021 futures traded at a premium of 5.10 points at 1939.00 (LTP) compared with spot closing of 1933.90. The numbers of contracts traded were 21,262 (Provisional).
Among, Nifty calls, 15500 SP from the May month expiry was the most active call with an addition of 817 units open interests. Among Nifty puts, 14500 SP from the May month expiry was the most active put with an addition of 6,267 units open interests. The maximum OI outstanding for Calls was at 15000 SP (35,745 units) and that for Puts was at 14000 SP (59,641 units). The respective Support and Resistance levels of Nifty are: Resistance 14,910.03 -- Pivot Point 14,840.72 -- Support -- 14,781.43.
The Nifty Put Call Ratio (PCR) finally stood at (1.70) for May month contract. The top five scrips with highest PCR on Mphasis (1.98), PVR (1.41), Tata Steel (1.16), IRCTC (1.01) and National Aluminium Company (0.93).
Among most active underlying, Tata Steel witnessed an addition of 1,205 units of Open Interest in the May month futures contract, Tata Motors witnessed an addition of 941 units of Open Interest in the May month futures contract, BHEL witnessed an addition of 1,953 units of Open Interest in the May month futures contract, SAIL witnessed a contraction of 360 units of Open Interest in the May month futures contract and SBIN witnessed an addition of 840 units of Open Interest in the May month futures contract (Provisional).
