Nifty ends near intraday low point

Indian equity benchmark -- Nifty -- ended near its intraday low point. After a negative start, index remained volatile, impacted with a private report stating that Indian retail inflation likely surged to an 18-month high in April, largely driven by rising fuel and food prices and staying well above the Reserve Bank of India's upper tolerance limit for a fourth consecutive month.

Despite volatility, market was in green terrain for the most part of the trading session, taking some support with a private report stating that improving business sentiment has boosted the overall hiring demand which witnessed a 15 per cent year-on-year growth in April, led by banking, financial services and insurance sector as well as recovery in the retail sector.

However, index cut all of its gains in the last hour of the trading session and closed the day in red terrain, on the back of negative cues from other Asian markets. There was some cautiousness after Meghalaya Governor Satya Pal Malik said increasing inflation and unemployment are going to create a situation of crisis in the country but no leader is ready to speak on the issues.

All the sectoral indices ended in green except PVT Bank, Bank and Fin Service. The top gainers from the F&O segment were Hindustan Unilever, Asian Paints and IndusInd Bank. On the other hand, the top losers were Coal India, TATA Steel and ONGC. 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 1.22% and reached 22.30. The 50 share Nifty down by 61.80 points or 0.38% to settle at 16,240.05.

Nifty May 2022 futures closed at 16222.15 (LTP) on Tuesday, at a discount of 17.90 points over spot closing of 16240.05, while Nifty June 2022 futures ended at 16229.85 (LTP), at a discount of 10.20 points over spot closing.  Nifty May futures saw an addition of 13,703 units, taking the total open interest (OI) to 2,33,800 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 8.55 points at 2470.25 (LTP) compared with spot closing of 2461.70. The numbers of contracts traded were 49,638 (Provisional).

Tata Steel May 2022 futures traded at a premium of 3.70 points at 1164.95 (LTP) compared with spot closing of 1161.25. The numbers of contracts traded were 44,580 (Provisional).

HDFC Bank May 2022 futures traded at a discount of 13.40 points at 1325.60 (LTP) compared with spot closing of 1339.00. The numbers of contracts traded were 30,896 (Provisional).

Asian Paints May 2022 futures traded at a premium of 11.10 points at 3102.10 (LTP) compared with spot closing of 3091.00. The numbers of contracts traded were 27,610 (Provisional).

Infosys May 2022 futures traded at a premium of 5.25 points at 1556.25 (LTP) compared with spot closing of 1551.00. The numbers of contracts traded were 24,741 (Provisional). 

Among, Nifty calls, 16300 SP from the May month expiry was the most active call with an addition of 7,486 units open interests. Among Nifty puts, 16000 SP from the May month expiry was the most active put with an addition of 8,342 units open interests. The maximum OI outstanding for Calls was at 17000 SP (60,172 units) and that for Puts was at 16000 SP (89,987 units). The  respective  Support  and  Resistance  levels  of  Nifty  are:  Resistance  16,363.97  --  Pivot  Point  16,280.63  --  Support  --  16,156.72.

The Nifty Put Call Ratio (PCR) finally stood at (1.26) for May month contract. The top five scrips with highest PCR on Asian Paints (0.83), Power Grid (0.80), Sun TV (0.73), Honeywell Automation India (0.71), and PVR (0.70).

Among most active underlying, Reliance Industries witnessed an addition of 5,045 units of Open Interest in the May month futures contract, Tata steel witnessed an addition of 6,729 units of Open Interest in the May month futures contract, HDFC Bank witnessed an addition of 2,144 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 3,378 units of Open Interest in the May month futures contract and Asian Paints witnessed an addition of 1,848 units of Open Interest in the May month futures contract (Provisional).