Nifty regains on last trading day of week

CNX S&P -- Nifty recovered from yesterday’s losses and finished the session above 16200 mark on last trading day of week. Market made optimistic start with Finance Minister Nirmala Sitharaman’s statement that India's economic growth is likely to be robust at 8.9 percent in the current financial year, reflecting the country's strong resilience and speedy recovery. Sitharaman also expressed confidence that India will continue to achieve a high growth rate in the next financial year as well. Further, index extended upward trend, as bank credit grew by 10.82 per cent to Rs 120.46 lakh crore and deposits by 9.71 per cent to Rs 166.95 lakh crore in the fortnight ended May 6, 2022. Index continued to trade strength to strength till the end. Finally, Nifty closed the day’s trade with the gains of above two and half a percent. 

All the sectoral indices ended in green. The top gainers from the F&O segment were Granules India, BHEL and SUNTV. On the other hand, the top losers were P I Industries, Godrej Consumer Products and Container Corporation of India. 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 5.93% and reached 23.10. The 50 share Nifty up by 456.75 points or 2.89% to settle at 16,266.15.

Nifty May 2022 futures closed at 16274.90 (LTP) on Friday, at a premium of 8.75 points over spot closing of 16266.15, while Nifty June 2022 futures ended at 16271.50 (LTP), at a premium of 5.35 points over spot closing. Nifty May futures saw a contraction of 12,386 units, taking the total open interest (contracts) to 1,61,662 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 1.20 points at 2627.65 (LTP) compared with spot closing of 2628.85. The numbers of contracts traded were 56,071 (Provisional).

HDFC Bank May 2022 futures traded at a premium of 3.45 points at 1326.90 (LTP) compared with spot closing of 1323.45. The numbers of contracts traded were 41,715 (Provisional).

Infosys May 2022 futures traded at a premium of 3.35 points at 1462.35 (LTP) compared with spot closing of 1459.00. The numbers of contracts traded were 33,818 (Provisional).

Tata Steel May 2022 futures traded at a premium of 1.45 points at 1170.45 (LTP) compared with spot closing of 1169.00. The numbers of contracts traded were 28,717 (Provisional).

HDFC Bank May 2022 futures traded at a premium of 7.85 points at 1331.30 (LTP) compared with spot closing of 1323.45. The numbers of contracts traded were 23,458 (Provisional).

Among, Nifty calls, 16500 SP from the May month expiry was the most active call with an addition of 4,359 units open interests. Among Nifty puts, 16200 SP from the May month expiry was the most active put with an addition of 44,380 units open interests. The maximum OI outstanding for Calls was at 17000 SP (1,56,358 units) and that for Puts was at 16000 SP (1,56,358 units). The respective Support and Resistance levels of Nifty are: Resistance 16,364.85 -- Pivot Point 16,184.35 -- Support -- 16,085.65

The Nifty Put Call Ratio (PCR) finally stood at (1.02) for May month contract. The top five scrips with highest PCR on Dr Reddy's Laboratories (1.08), Eicher Motors (1.01), HUL (0.95), Apollo Tyre (0.92) and Cipla (0.90).

Among most active underlying, Reliance Industries witnessed an addition of 3,396 units of Open Interest in the May month futures contract, HDFC Bank witnessed a contraction of 2,118 units of Open Interest in the May month futures contract, Adani Enterprises witnessed an addition of 3,521 units of Open Interest in the May month futures contract, Infosys witnessed an addition of 2,233 units of Open Interest in the May month futures contract and Tata Steel witnessed an addition of 243 units of Open Interest in the May month futures contract (Provisional).