Nifty remained under bears’ grip for second day in a row as traders remain worried that a tightening Covid-19 lockdown in Shanghai could hit global economic growth. Weak global cues triggered a gap down start. Sentiments remain dampened on concern over private report that foreign funds’ ownership in domestic equities fell to pre-COVID lows and hit a multi-year low of 19.5 per cent in March this year in NSE500 companies valued at $619 billion. Investors were also cautious ahead of crucial macro-economic data such as industrial output and retail inflation reading to be out later this week. Meanwhile, the Indian rupee tumbled to an all-time low of 77.42 against the dollar on Monday.
However, market managed to recoup half of the losses in later part of the day as some solace came with Finance Minister Nirmala Sitharaman’s statement that the recent interest rate hike by the Reserve Bank was not surprising for her but the timing was, asserting that the rising cost of funds will not impact the government's planned infrastructure investments. Market participants also got some support as private report stated that with the e-way bills generated for inter-state trade in goods under the Goods and Services Tax (GST) regime in April turning out to be the second highest so far, the monthly GST collections may hit Rs 1.5 trillion benchmark again in May (April transactions). Recovery in second half couldn’t help the Nifty to wipeout all the losses, but helped it to end tad above its crucial 16,300 level.
All the sectoral indices ended in red except IT. The top gainers from the F&O segment were Power Grid, HCL Tech and Infosys. On the other hand, the top losers were Reliance Industries, Nestle India and Hero Moto Corp. In the index option segment, maximum OI continues to be seen in the 16900 -17200 calls and 15900 -16200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 3.68% and reached 22.03. The 50 share Nifty down by 109.40 points or 0.67% to settle at 16,301.85.
Nifty May 2022 futures closed at 16309.95 (LTP) on Monday, at a premium of 8.10 points over spot closing of 16301.85, while Nifty June 2022 futures ended at 16315.00 (LTP), at a premium of 13.15 points over spot closing. Nifty May futures saw an addition of 14,238 units, taking the total open interest (OI) to 2,31,504 units. The near month derivatives contract will expire on May 26, 2022 (Provisional).
From the most active contracts, Reliance Industries May 2022 futures traded at a premium of 2.45 points at 2510.45 (LTP) compared with spot closing of 2508.00. The numbers of contracts traded were 52,542 (Provisional).
Infosys May 2022 futures traded at a premium of 1.00 points at 1574.15 (LTP) compared with spot closing of 1573.15. The numbers of contracts traded were 33,280 (Provisional).
HDFC Bank May 2022 futures traded at a discount of 10.45 points at 1311.30 (LTP) compared with spot closing of 1321.75. The numbers of contracts traded were 33,156 (Provisional).
TCS May 2022 futures traded at a discount of 2.00 points at 3443.05 (LTP) compared with spot closing of 3445.05. The numbers of contracts traded were 21,503 (Provisional).
Tata Power May 2022 futures traded at a premium of 0.05 points at 230.00 (LTP) compared with spot closing of 229.95. The numbers of contracts traded were 19,688 (Provisional).
Among, Nifty calls, 16300 SP from the May month expiry was the most active call with an addition of 8,682 units open interests. Among Nifty puts, 16200 SP from the May month expiry was the most active put with an addition of 7,956 units open interests. The maximum OI outstanding for Calls was at 17000 SP (55,643 units) and that for Puts was at 16000 SP (84,480 units). The respective Support and Resistance levels of Nifty are: Resistance 16,423.00 -- Pivot Point 16,282.55 -- Support -- 16,161.40.
The Nifty Put Call Ratio (PCR) finally stood at (1.30) for May month contract. The top five scrips with highest PCR on Dalmia Bharat (0.87), Power Grid (0.82), Adani Enterprises (0.78), Torrent Power (0.77), and Hindustan Copper (0.76).
Among most active underlying, Reliance Industries witnessed an addition of 980 units of Open Interest in the May month futures contract, HDFC Bank witnessed an addition of 6,800 units of Open Interest in the May month futures contract, Infosys witnessed an addition of 1,267 units of Open Interest in the May month futures contract, Tata Power witnessed an addition of 2,285 units of Open Interest in the May month futures contract and UPL witnessed an addition of 761 units of Open Interest in the May month futures contract (Provisional).
