S&P CNX -- Nifty gave powerful performance by surging over two and half a percent on Tuesday, surpassing its psychological level of 16,200 amid strong buying in metal stocks. Market made positive start, as Sanjiv Bajaj, the newly-elected president of industry body CII, said that the Reserve Bank’s decision to raise benchmark interest rates and the likelihood of a good monsoon will help in containing inflation. CII estimates India's GDP growth to be in the band of 7.4-8.2 percent, depending upon the global oil prices. Further, index added more points even after India’s inflation based on wholesale price index (WPI) surged further to 15.08% for the month of April as against 14.55% in March. The annual rate of inflation was 15.08% in April 2022 as compared to 10.74% in April 2021, due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products etc. as compared to the corresponding month of the previous year. Market continued its upward trade till the end and finished the session near intraday high point. Traders also found support after a private report revealed that consumers between 35 and 40 years of age are the most credit healthy, while those below 25 years are the least credit healthy.
All the sectoral indices ended in green. The top gainers from the F&O segment were Vedanta, Intellect Design Arena and Hindustan Copper. On the other hand, the top losers were Dalmia Bharat, Escorts and Aurobindo Pharma. 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 decreased by 7.27% and reached 22.74. The 50 share Nifty up by 417.00 points or 2.63% to settle at 16,259.30.
Nifty May 2022 futures closed at 16266.45 (LTP) on Tuesday, at a premium of 7.15 points over spot closing of 16259.30, while Nifty June 2022 futures ended at 16269.50 (LTP), at a premium of 10.20 points over spot closing. Nifty May futures saw an addition of 4,652 units, taking the total open interest (contracts) to 1,88,163 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 discount of 0.50 points at 2533.00 (LTP) compared with spot closing of 2533.50. The numbers of contracts traded were 38,631 (Provisional).
Hindalco Industries May 2022 futures traded at a discount of 0.25 points at 429.00 (LTP) compared with spot closing of 429.25. The numbers of contracts traded were 30,748 (Provisional).
Tata Steel May 2022 futures traded at a premium of 2.35 points at 1191.00 (LTP) compared with spot closing of 1188.65. The numbers of contracts traded were 29,566 (Provisional).
Infosys May 2022 futures traded at a premium of 4.90 points at 1525.90 (LTP) compared with spot closing of 1521.00. The numbers of contracts traded were 26,490 (Provisional).
HDFC Bank May 2022 futures traded at a premium of 4.05 points at 1320.05 (LTP) compared with spot closing of 1316.00. The numbers of contracts traded were 24,077 (Provisional).
Among, Nifty calls, 16500 SP from the May month expiry was the most active call with a contraction of 4,841 units open interests. Among Nifty puts, 16000 SP from the May month expiry was the most active put with an addition of 19,073 units open interests. The maximum OI outstanding for Calls was at 17000 SP (77,124 units) and that for Puts was at 16000 SP (95,214 units). The respective Support and Resistance levels of Nifty are: Resistance 16,395.43 -- Pivot Point 16,148.12 -- Support -- 16,011.98.
The Nifty Put Call Ratio (PCR) finally stood at (1.08) for May month contract. The top five scrips with highest PCR on Eicher Motors (1.23), RBL Bank (0.96), TVS Motors (0.94), Balkrishna Industries (0.94) and MRF (0.94).
Among most active underlying, Reliance Industries witnessed a contraction of 310 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 193 units of Open Interest in the May month futures contract, HDFC Bank witnessed an addition of 946 units of Open Interest in the May month futures contract, Tata Steel witnessed an addition of 1,211 units of Open Interest in the May month futures contract and Hindalco Industries witnessed an addition of 4,061 units of Open Interest in the May month futures contract (Provisional).
