S&P CNX Nifty resumed southward journey on Wednesday and ended the session with cut of above half a percent. Market made negative opening and turned volatile for short time, where it entered into green but again came back in red terrain, as India reported 267,174 fresh Covid-19 cases to take total infections past 26.7 million, according to Worldometer. The country also logged a record 4,525 deaths in the last 24 hours. Further, Market continued its weak trade, as smaller non-banking finance companies (NBFCs) have written to the Reserve Bank requesting liquidity support as they continue to face challenges in raising funds. In a letter addressed to RBI Governor Shaktikanta Das, Finance Industry Development Council (FIDC), a representative body of NBFCs, said the announcements made on May 5 by the central bank have addressed liquidity needs of small microfinance institutions MFIs, but NBFCs have missed out.
In late afternoon session, market added more losses to touch intraday low point even after Union Finance Ministry, on the recommendation of the Panchayati Raj Ministry, released Rs 8,923.8 crore to 25 states for providing grant to rural local bodies. The spread of COVID-19 pandemic in different parts of the country has recently assumed serious proportions. The vulnerabilities of the rural communities need to be especially addressed. Finally, Nifty finished the session below 15050 mark.
Traders were seen piling positions in IT, Media and Pharma sector while selling was witnessed in Bank, Auto and FMGC sector stocks. The top gainers from the F&O segment were Page Industries, Coal India and LTI. On the other hand, the top losers were Aarti Industries, Tata Motors and PI Industries. In the index option segment, maximum OI continues to be seen in the 15300- 16500 calls and 13,600- 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 0.40% and reached 19.32. The 50 share Nifty down by 77.95 points or 0.52% to settle at 15,030.15.
Nifty May 2021 futures closed at 15048.55 (LTP) on Wednesday, at a premium of 18.40 points over spot closing of 15030.15, while Nifty June 2021 futures ended at 15072.40 (LTP), at a premium of 42.25 points over spot closing. Nifty May futures saw an addition of 90 units, taking the total open interest (Contracts) to 1,47,010 units. The near month derivatives contract will expire on May 27, 2021 (Provisional).
From the most active contracts, Tata Motors May 2021 futures traded at a premium of 0.40 points at 314.50 (LTP) compared with spot closing of 314.10. The numbers of contracts traded were 41,651 (Provisional).
Reliance Industries May 2021 futures traded at a premium of 7.95 points at 2000.95 (LTP) compared with spot closing of 1993.00. The numbers of contracts traded were 40,978 (Provisional).
Axis Bank May 2021 futures traded at a premium of 1.40 points at 715.50 (LTP) compared with spot closing of 714.10. The numbers of contracts traded were 33,159 (Provisional).
SBIN May 2021 futures traded at a premium of 1.00 points at 385.40 (LTP) compared with spot closing of 384.40. The numbers of contracts traded were 28,126 (Provisional).
Tata Steel May 2021 futures traded at a premium of 1.90 points at 1162.90 (LTP) compared with spot closing of 1161.00. The numbers of contracts traded were 18,751 (Provisional).
Among, Nifty calls, 15100 SP from the May month expiry was the most active call with an addition of 5,413 units open interests. Among Nifty puts, 15000 SP from the May month expiry was the most active put with an addition of 3,917 units open interests. The maximum OI outstanding for Calls was at 15500 SP (28,295 units) and that for Puts was at 14000 SP (58,413 units). The respective Support and Resistance levels of Nifty are: Resistance 15,106.08 -- Pivot Point 15,057.47 -- Support -- 14,981.53.
The Nifty Put Call Ratio (PCR) finally stood at (1.46) for May month contract. The top five scrips with highest PCR on Mphasis (1.94), PVR (1.01), Asian Paints (1.01), Titan Company (0.94) and Bajaj Finance (0.89).
Among most active underlying, Tata Motors witnessed an addition of 1,759 units of Open Interest in the May month futures contract, Axis Bank witnessed an addition of 6,175 units of Open Interest in the May month futures contract, Reliance Industries witnessed an addition of 2,560 units of Open Interest in the May month futures contract, Tata Steel witnessed an addition of 1,113 units of Open Interest in the May month futures contract and SBIN witnessed an addition of 168 units of Open Interest in the May month futures contract (Provisional).
