Nifty gave powerful performance on second trading day of new financial year by surpassing 18000 level led by gains in HDFC and HDFC Bank as they have announced a transformational merger. With this, HDFC will merge into HDFC Bank and the public shareholders of HDFC Bank will become 100% shareholders of HDFC. Market made positive start, as Niti Aayog Vice Chairman Rajiv Kumar said India is on the cusp of a major economic recovery and talks of possible stagflation are overhyped as a strong economic foundation is being laid with the reforms carried out by the government over the last seven years. Further, market extended its gains to touch day’s high point, as Finance Ministry said Gross GST collection in March touched an all-time high of over Rs 1.42 trillion. Index continued its healthy trade till the end after Finance Minister Nirmala Sitharaman said that India continues to remain the highest receiver of the FDI, and the Indian retail investors have created the capacity to absorb the shock due to outflow of foreign funds from the country’s stock markets. Finally, Nifty finished the session with the gains of above two percent.
All the sectoral indices ended in green. The top gainers from the F&O segment were HDFC Bank, IndiaMART InterMESH and HDFC. On the other hand, the top losers were Mphasis, ACC and Cholamandalam Investment and Fin Co. In the index option segment, maximum OI continues to be seen in the 18950 -19150 calls and 17900 -18100 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 17.91. The 50 share Nifty up by 382.95 points or 2.17% to settle at 18,053.40.
Nifty April 2022 futures closed at 18092.00 (LTP) on Monday, at a premium of 38.60 points over spot closing of 18053.40, while Nifty May 2022 futures ended at 18123.00 (LTP), at a premium of 69.60 points over spot closing. Nifty April futures saw a contraction of 141 units, taking the total open interest (OI) to 2,37,923 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, HDFC Bank April 2022 futures traded at a discount of 8.10 points at 1646.00 (LTP) compared with spot closing of 1654.10. The numbers of contracts traded were 1,25,667 (Provisional).
HDFC April 2022 futures traded at a premium of 10.25 points at 2686.25 (LTP) compared with spot closing of 2676.00. The numbers of contracts traded were 1,22,066 (Provisional).
HDFC Life April 2022 futures traded at a premium of 2.65 points at 573.50 (LTP) compared with spot closing of 570.85. The numbers of contracts traded were 27,298 (Provisional).
Infosys April 2022 futures traded at a premium of 7.00 points at 1889.00 (LTP) compared with spot closing of 1882.00. The numbers of contracts traded were 26,539 (Provisional).
ICICI Bank April 2022 futures traded at a premium of 1.35 points at 746.50 (LTP) compared with spot closing of 745.15. The numbers of contracts traded were 26,134 (Provisional).
Among, Nifty calls, 18100 SP from the April month expiry was the most active call with an addition of 3,972 units open interests. Among Nifty puts, 18000 SP from the April month expiry was the most active put with an addition of 25,914 units open interests. The maximum OI outstanding for Calls was at 19000 SP (38,945 units) and that for Puts was at 18000 SP (44,675 units). The respective Support and Resistance levels of Nifty are: Resistance 18,181.57 -- Pivot Point 17,986.48 -- Support -- 17,858.32.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for April month contract. The top five scrips with highest PCR on ABB (1.33), Power Grid (0.95), Adani Enterprises (0.84), Canara Bank (0.76) and IDFC First Bank (0.76).
Among most active underlying, HDFC Bank witnessed an addition of 5,104 units of Open Interest in the April month futures contract, HDFC witnessed an addition of 15,370 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 2,640 units of Open Interest in the April month futures contract, Adani Ports witnessed an addition of 2,769 units of Open Interest in the April month futures contract and Tata Power witnessed an addition of 219 units of Open Interest in the April month futures contract (Provisional).
