S&P CNX --Nifty-- extended its downfall for second straight session. Market made negative opening, as domestic rating agency Care Ratings revised its GDP growth forecast for the current fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier. This is the fourth revision by the rating agency in its GDP growth forecast for FY2021-22 since March this year. On March 24 this year, it had projected GDP growth for FY22 at 11-11.2 per cent but revised downwards forecast to 10.7 per cent on April 5 and further to 10.2 per cent on April 21. Index continued its free fall, as United Nations said India is forecast to grow at 10.1 per cent in 2022, becoming the fastest-growing major economy in the world, but cautioned that the growth outlook of 2021 was highly fragile as the country was the new hotbed of the pandemic. Traders failed to took support, as active Covid cases declined for the third straight day and the fresh Covid cases remained below the 3.5 lakh mark for the second day in a row at 3,48,371. In the last leg of trade market touched its low point, as rating agency Moody’s has cut India’s gross domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier projection of 13.7 per cent and has ruled out a sovereign rating upgrade - at least for now. Finally, Nifty ended the session with cut of above a percent.
Most of the sectoral indices ended in red except Auto, Media and PSU Bank. The top gainers from the F&O segment were Godrej Properties, Vodafone Idea and PNB. On the other hand, the top losers were Cholamandalam Investment and Fin Co, SAIL and Granules India. 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 1.26% and reached 20.08. The 50 share Nifty down by 154.25 points or 1.04% to settle at 14,696.50.
Nifty May 2021 futures closed at 14708.90 (LTP) on Wednesday, at a premium of 12.40 points over spot closing of 14696.50, while Nifty June 2021 futures ended at 14742.40 (LTP), at a premium of 45.90 points over spot closing. Nifty May futures saw an addition of 6,934 units, taking the total open interest (OI) to 1,63,407 units. The near month derivatives contract will expire on May 27, 2021.
From the most active contracts, SBIN May 2021 futures traded at a premium of 1.75 points at 369.50 (LTP) compared with spot closing of 367.75. The numbers of contracts traded were 48,775 (Provisional).
Tata Steel May 2021 futures traded at a premium of 5.00 points at 1180.00 (LTP) compared with spot closing of 1175.00. The numbers of contracts traded were 42,545 (Provisional).
Tata Motors May 2021 futures traded at a premium of 1.45 points at 327.00 (LTP) compared with spot closing of 325.55. The numbers of contracts traded were 41,187 (Provisional).
Reliance Industries May 2021 futures traded at a premium of 2.25 points at 1915.30 (LTP) compared with spot closing of 1913.05. The numbers of contracts traded were 26,398 (Provisional).
Godrej Properties May 2021 futures traded at a premium of 3.45 points at 873.50 (LTP) compared with spot closing of 870.05. The numbers of contracts traded were 25,336 (Provisional).
Among, Nifty calls, 15000 SP from the May month expiry was the most active call with an addition of 3,220 units open interests. Among Nifty puts, 14500 SP from the May month expiry was the most active put with a contraction of 7,030 units open interests. The maximum OI outstanding for Calls was at 15000 SP (38,524 units) and that for Puts was at 14000 SP (56,837 units). The respective Support and Resistance levels of Nifty are: Resistance 14,797.13 -- Pivot Point 14,723.42 -- Support -- 14,622.78.
The Nifty Put Call Ratio (PCR) finally stood at (1.54) for May month contract. The top five scrips with highest PCR on Mphasis (1.72), PVR (1.49), Godrej Properties (1.12), Tata Steel (0.96) and National Aluminium Company (0.95).
Among most active underlying, Tata Steel witnessed an addition of 442 units of Open Interest in the May month futures contract, Tata Motors witnessed an addition of 1,228 units of Open Interest in the May month futures contract, Cadila Healthcare witnessed an addition of 1,541 units of Open Interest in the May month futures contract, SBIN witnessed an addition of 4,518 units of Open Interest in the May month futures contract and NMDC witnessed an addition of 722 units of Open Interest in the May month futures contract (Provisional).
