Nifty witnesses considerable losses on Thursday

Local benchmark S&P CNX Nifty witnessed considerable losses on Thursday. Market made negative start, after private report lowered its forecasts for India's economic growth in the next two fiscal years, saying a global slowdown, surging oil prices and weak domestic demand would take a toll on Asia's third-largest economy. Market continued its weak trade with private report that tightening of policy rates by major central banks, including the RBI, would adversely impact demand in the next 6-8 months and slow down the recovery process. Index extended downside in the last leg of trade with a private report that India's central bank is likely to raise its inflation projection for the current fiscal year at its June monetary policy meeting and will consider more interest rate hikes. Besides, industry body SIAM has said that passenger vehicle (PV) dispatches from factories to dealers in the domestic market declined by 4 per cent in April as supply side challenges continued for the automotive industry. Finally, Nifty finished the session below 16000 level.

All sectoral indices ended in red. The top gainers from the F&O segment were Gujrat Gas, Indiabulls Housing Finance and Ambuja Cements. On the other hand, the top losers were Adani Ports, RAIN and PNB. In the index option segment, maximum OI continues to be seen in the 16900 -17200 calls and 14950 -15200 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 6.41% and reached 24.27. The 50 share Nifty down by 359.10 points or 2.22% to settle at 15,808.00.

Nifty May 2022 futures closed at 15825.10 (LTP) on Thursday, at a premium of 17.10 points over spot closing of 15808.00, while Nifty June 2022 futures ended at 15831.05 (LTP), at a premium of 23.05 points over spot closing. Nifty May futures saw an addition of 21,375 units, taking the total outstanding open interest (OI) to 2,27,347 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 8.90 points at 2412.40 (LTP) compared with spot closing of 2403.50. The numbers of contracts traded were 37,459 (Provisional).

Tata Steel May 2022 futures traded at a premium of 3.25 points at 1122.15 (LTP) compared with spot closing of 1118.90. The numbers of contracts traded were 28,131 (Provisional).

HDFC Bank May 2022 futures traded at a premium of 1.20 points at 1303.70 (LTP) compared with spot closing of 1302.50. The numbers of contracts traded were 27,952 (Provisional).

Infosys May 2022 futures traded at a discount of 0.35 points at 1509.35 (LTP) compared with spot closing of 1509.70. The numbers of contracts traded were 26,960 (Provisional).

Tata Motors May 2022 futures traded at a premium of 2.20 points at 374.10 (LTP) compared with spot closing of 371.90. The numbers of contracts traded were 25,872 (Provisional).

Among, Nifty calls, 16000 SP from the May month expiry was the most active call with an addition of 25,414 units open interests. Among Nifty puts, 15500 SP from the May month expiry was the most active put with an addition of 1,751 units open interests. The maximum OI outstanding for Calls was at 17000 SP (70,391 units) and that for Puts was at 15000 SP (54,537 units). The respective Support and Resistance levels of Nifty are: Resistance 15,988.05 -- Pivot Point 15,861.90 -- Support -- 15,681.85.

The Nifty Put Call Ratio (PCR) finally stood at (1.05) for May month contract. The top five scrips with highest PCR on Gujrat Gas (0.92), Muthoot Finance (0.73), Cipla (0.70), Sun TV (0.69) and Adani Enterprises (0.68).

Among most active underlying, Reliance Industries witnessed an addition of 4,138 units of Open Interest in the May month futures contract, HDFC Bank witnessed an addition of 1,990 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 1,811 units of Open Interest in the May month futures contract, SBIN witnessed an addition of 2,459 units of Open Interest in the May month futures contract and Tata Motors witnessed an addition of 2,394 units of Open Interest in the May month futures contract (Provisional).