Nifty ends lower on Wednesday

S&P CNX Nifty ended Wednesday’s session in red zone. After making positive start, market soon slipped into negative territory, as data released by the RBI showed that India's outward foreign direct investment (OFDI) nearly halved to $3.39 billion in April on an annual basis. The OFDI stood at $6.71 billion in April 2021. Further, index added more losses with a private report stating that the goods and services tax (GST) council is mulling a 28 per cent tax on crypto currencies, at par with the current GST on casinos, betting and lottery. Index continued its weak trade after a private report stated that a majority of the Indian consumers are bullish about their financial situation in the next one year, but have raised concerns over rising cost of goods and services, which is affecting their purchasing decisions. In last leg of trade, market trimmed its some losses but ended the session below neutral line.

Most of  the sectoral indices ended in red except Bank, Metal and Fin Service. The top gainers from the F&O segment were Gujrat Gas, SRF and Crompton Greaves Consumer Electricls. On the other hand, the top losers were Dixon Technologies, Gujarat Narmada Valley Fertilisers & Chemicals and Indiabulls Housing Finance. 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 2.24% and reached 22.80. The 50 share Nifty down by 72.95 points or 0.45% to settle at 16,167.10.

Nifty May 2022 futures closed at 16203.50 (LTP) on Wednesday, at a premium of 36.40 points over spot closing of 16167.10, while Nifty June 2022 futures ended at 16223.00 (LTP), at a premium of 55.90 points over spot closing. Nifty May futures saw an addition of 12,801 units, taking the total outstanding open interest (OI) to 2,18,349 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 9.00 points at 2459.75 (LTP) compared with spot closing of 2450.75. The numbers of contracts traded were 48,333 (Provisional).

Tata Steel May 2022 futures traded at a premium of 3.60 points at 1176.50 (LTP) compared with spot closing of 1172.90. The numbers of contracts traded were 34,810 (Provisional).

Infosys May 2022 futures traded at a premium of 5.05 points at 1536.05 (LTP) compared with spot closing of 1531.00. The numbers of contracts traded were 31,356 (Provisional).

HDFC Bank May 2022 futures traded at a discount of 11.50 points at 1337.95 (LTP) compared with spot closing of 1349.45. The numbers of contracts traded were 29,752 (Provisional).

Tata Motors May 2022 futures traded at a premium of 1.75 points at 392.05 (LTP) compared with spot closing of 390.30. The numbers of contracts traded were 24,245 (Provisional).

Among, Nifty calls, 16500 SP from the May month expiry was the most active call with an addition of 4,215 units open interests. Among Nifty puts, 16000 SP from the May month expiry was the most active put with an addition of 13,615 units open interests. The maximum OI outstanding for Calls was at 17000 SP (61,158 units) and that for Puts was at 16000 SP (1,02,410 units). The respective Support and Resistance levels of Nifty are: Resistance 16,326.37 -- Pivot Point 16,159.48 -- Support --16,000.22.

The Nifty Put Call Ratio (PCR) finally stood at (1.19) for May month contract. The top five scrips with highest PCR on Cipla (0.84), Hindustan Copper (0.74), Power Grid (0.73), Asian Paints (0.73) and Adani Enterprises (0.73).

Among most active underlying, Reliance Industries witnessed an addition of 7,114 units of Open Interest in the May month futures contract, HDFC Bank witnessed a contraction of 1,027 units of Open Interest in the May month futures contract, Tata Steel witnessed an addition of 1,443 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 2,777 units of Open Interest in the May month futures contract and Tata Motors witnessed an addition of 3,724 units of Open Interest in the May month futures contract (Provisional).