S&P CNX -- Nifty -- exhibited a smart pull back in Monday’s trade ending with a gain of above one and half a percentage. Market made positive start with government data showing that India's exports in April jumped nearly three-fold to $30.63 billion from $10.36 billion in the same month last year. Imports too rose to $45.72 billion last month as against $17.12 billion in April 2020. Traders overlooked Care ratings’ latest survey stating that amid a raging second wave of COVID-19 and subsequent restrictions on business activities imposed by several states, economic recovery is beginning to lose steam and the country's GDP growth is likely to be below nine per cent for the current fiscal.
Market added more points after Commerce and Industry Minister Piyush Goyal had a 'fruitful discussion' in a virtual meeting with US Trade Representative Katherine Tai to enhance COVID-19 vaccine production. Besides, the GST Council will meet on May 28 and is likely to discuss tax rates on COVID-related drugs, oxygen equipment and vaccines. The meeting among other things is also likely to discuss the compensation mechanism for states' GST revenue shortfall for the ongoing fiscal which began on April 1. Index continued its upward rally after RBI data showed that country's foreign exchange reserves increased by $1.444 billion to $589.465 billion in the week ended May 7, 2021. In the previous week ended April 30, 2021, the reserves had risen by $3.913 billion to $588.02 billion. Finally, Nifty ended the session above 14900 mark.
Most of the sectoral indices ended in green except Media and Pharma. The top gainers from the F&O segment were Balkrishna Industries, Indusind Bank and National Aluminium Company. On the other hand, the top losers were ICICI Prudential Life Insurance, Bharti Airtel and Cipla. 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 3.25% and reached 19.61. The 50 share Nifty up by 245.35 points or 1.67% to settle at 14,923.15.
Nifty May 2021 futures closed at 14955.40 (LTP) on Monday, at a premium of 32.25 points over spot closing of 14923.15, while Nifty June 2021 futures ended at 14978.85 (LTP), at a premium of 55.70 points over spot closing. Nifty May futures saw an addition of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 1,54,324 mn units. The near month derivatives contract will expire on May 27, 2021 (Provisional).
From the most active contracts, SBIN May 2021 futures traded at a premium of 1.75 points at 386.20 (LTP) compared with spot closing of 384.45. The numbers of contracts traded were 68,760 (Provisional).
Tata Steel May 2021 futures traded at a premium of 2.90 points at 1156.35 (LTP) compared with spot closing of 1153.45. The numbers of contracts traded were 43,581 (Provisional).
Reliance Industries May 2021 futures traded at a premium of 4.45 points at 1963.30 (LTP) compared with spot closing of 1958.85. The numbers of contracts traded were 32,769 (Provisional).
Cipla May 2021 futures traded at a premium of 4.55 points at 888.00 (LTP) compared with spot closing of 883.45. The numbers of contracts traded were 26,349 (Provisional).
ICICI Bank May 2021 futures traded at a premium of 0.60 points at 624.50 (LTP) compared with spot closing of 623.90. The numbers of contracts traded were 23,957 (Provisional).
Among, Nifty calls, 15000 SP from the May month expiry was the most active call with a contraction of 5,469 units open interests. Among Nifty puts, 14000 SP from the May month expiry was the most active put with an addition of 747 units open interests. The maximum OI outstanding for Calls was at 15000 SP (32,492 units) and that for Puts was at 14000 SP (56,557 units). The respective Support and Resistance levels of Nifty are: Resistance 14,998.98 -- Pivot Point 14,862.17 -- Support -- 14,786.33.
The Nifty Put Call Ratio (PCR) finally stood at (1.55) for May month contract. The top five scrips with highest PCR on Mphasis (1.92), PVR (1.46), Gujarat Gas (1.04), Asian Paints (0.98) and Godrej Properties (0.98).
Among most active underlying, Tata Steel witnessed an addition of 1,299 units of Open Interest in the May month futures contract, SBIN witnessed an addition of 6,120 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 1,234 units of Open Interest in the May month futures contract, L&T witnessed an addition of 2,680 units of Open Interest in the May month futures contract and Tata Motors witnessed an addition of 770 units of Open Interest in the May month futures contract (Provisional).
