Indian benchmark -- Nifty -- finished the session near intraday high point on Tuesday on the back of buying in auto, FMCG, PSU Bank stocks. India VIX was down by 9.73%. Market made optimistic start with CII President TV Narendran’s statement that India’s economy is expected to grow 7.5-8 per cent this fiscal year with exports playing a key role in the country’s success story. Further, index added more points with report that India and the EU will return to the negotiating table to start serious talks for a free trade agreement (FTA) in June after a gap of nine years. Sentiments remained eminent after the Ministry of Commerce and Industry said that there is a five-fold increase in the grant of patent annually, and a four-fold rise in trademark registration every year since 2014. It said that to modernise the Intellectual Property (IP) office and reduce legal compliances, along with facilitating filing of IP applications, the government has adopted several administrative and legislative measures.
Market continued its firm trade till the last leg after private report stated that Finance Minister Nirmala Sitharaman held a meeting with representatives of the semiconductor industry of the US and invited them to make further investments in India. The Finance Minister spoke about opportunities for companies situated in Silicon Valley and about the government of India's commitment to be a reliable player in the entire semiconductor value chain with dedicated incentive for the sector in mission mode through the Indian Semiconductor Mission. Finally, Nifty ended the day’s trade with gains of above a percent.
All the sectoral indices ended in green. The top gainers from the F&O segment were Cholamandalam Investment and Fin Co, Indiabulls Housing Finance and Apollo Tyres. On the other hand, the top losers were Intellect Design Arena, Laurus Labs and Atul. In the index option segment, maximum OI continues to be seen in the 17450 -17600 calls and 15900 -16150 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 9.73% and reached 19.19. The 50 share Nifty up by 246.85 points or 1.46% to settle at 17,200.80.
Nifty April 2022 futures closed at 17211.50 (LTP) on Tuesday, at a premium of 10.70 points over spot closing of 17200.80, while Nifty May 2022 futures ended at 17244.95 (LTP), at a premium of 44.15 points over spot closing. Nifty April futures saw a contraction of 2,365 units, taking the total open interest (OI) to 1,44,129 units. The near month derivatives contract will expire on April 28, 2022 (Provisional).
From the most active contracts, Reliance Industries April 2022 futures traded at a discount of 1.20 points at 2787.00 (LTP) compared with spot closing of 2788.20. The numbers of contracts traded were 75,437 (Provisional).
Infosys April 2022 futures traded at a premium of 2.65 points at 1578.65 (LTP) compared with spot closing of 1576.00. The numbers of contracts traded were 42,34 (Provisional).
HDFC Bank April 2022 futures traded at a premium of 2.15 points at 1372.60 (LTP) compared with spot closing of 1370.45. The numbers of contracts traded were 39,539 (Provisional).
ICICI Bank April 2022 futures traded at a premium of 1.70 points at 755.35 (LTP) compared with spot closing of 753.65. The numbers of contracts traded were 30,226 (Provisional).
Adani Ports April 2022 futures traded at a discount of 0.30 points at 912.00 (LTP) compared with spot closing of 912.30. The numbers of contracts traded were 26,699 (Provisional).
Among, Nifty calls, 17300 SP from the April month expiry was the most active call with a contraction of 367 units open interests. Among Nifty puts, 17100 SP from the April month expiry was the most active put with an addition of 51,948 units open interests. The maximum OI outstanding for Calls was at 17500 SP (1,68,006 units) and that for Puts was at 17000 SP (1,54,436 units). The respective Support and Resistance levels of Nifty are: Resistance 17,261.62 -- Pivot Point 17,163.03 -- Support -- 17,102.22.
The Nifty Put Call Ratio (PCR) finally stood at (0.90) for April month contract. The top five scrips with highest PCR on Adani Enterprises (1.31), ACC (1.15), Biocon (1.06), MRF (1.03) and Bajaj Auto (1.01).
Among most active underlying, Reliance Industries witnessed an addition of 26,474 units of Open Interest in the April month futures contract, ICICI Bank witnessed a contraction of 1,464 units of Open Interest in the April month futures contract, HDFC Bank witnessed a contraction of 2,843 units of Open Interest in the April month futures contract, Adani Ports witnessed an addition of 852 units of Open Interest in the April month futures contract and Adani Enterprises witnessed an addition of 3,339 units of Open Interest in the April month futures contract.
