S&P CNX – Nifty closed Tuesday’s session with the cut of above half a percent. Market made slightly positive start and soon turned negative. Further, index continued its downward trade till late morning, as ICRA Ratings said the economic growth may have slowed to 3.5 per cent in fourth quarter of 2021-22 from 5.4 per cent in the previous three-month period due to the impact of higher commodity prices on margins, decline in wheat yields and on higher base. The agency said the hiccups in the recovery of the contact-intensive services attributable to the third wave of COVID-19 in the country may have also affected the economic growth in the quarter.
However, in afternoon market added points for little time but market failed to hold gains and once gain drifted lower with Moody's Investors Service stated that the prolonged high temperatures, which are affecting much of the northwest of the country, will curb wheat production and could lead to extended power outages, exacerbating already high inflation and hurting growth, are credit negative for India. Finally, Nifty closed the session below 16150 mark.
All the sectoral indices ended in red except Bank, Auto and Financial Services. The top gainers from the F&O segment were Coromandel International, Ashok Leyland and Abbott India. On the other hand, the top losers were Balrampur Chini Mills, Divi's Laboratories and PVR. 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 9.56% and reached 25.64. The 50 share Nifty down by 89.55 points or 0.55% to settle at 16,125.15.
Nifty May 2022 futures closed at 16123.00 (LTP) on Tuesday, at a discount of 2.15 points over spot closing of 16125.15, while Nifty June 2022 futures ended at 16118.90 (LTP), at a discount of 6.25 points over spot closing. Nifty May futures saw an addition of 7,899 units, taking the total open interest (contract) to 1,45,983 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 3.95 points at 2619.00 (LTP) compared with spot closing of 2615.05. The numbers of contracts traded were 51,802 (Provisional).
Infosys May 2022 futures traded at a premium of 1.45 points at 1445.45 (LTP) compared with spot closing of 1444.00. The numbers of contracts traded were 42,481 (Provisional).
HDFC Bank May 2022 futures traded at a discount of 2.90 points at 1317.10 (LTP) compared with spot closing of 1320.00. The numbers of contracts traded were 40,266 (Provisional).
Tata Steel May 2022 futures traded at a discount of 1.50 points at 1004.00 (LTP) compared with spot closing of 1005.50. The numbers of contracts traded were 38,091 (Provisional).
Tata Motors May 2022 futures traded at a premium of 0.30 points at 425.00 (LTP) compared with spot closing of 424.70. The numbers of contracts traded were 30,817 (Provisional).
Among, Nifty calls, 16200 SP from the May month expiry was the most active call with an addition of 36,804 units open interests. Among Nifty puts, 16000 SP from the May month expiry was the most active put with an addition of 27,017 units open interests. The maximum OI outstanding for Calls was at 17000 SP (1,76,635 units) and that for Puts was at 16000 SP (1,76,858 units). The respective Support and Resistance levels of Nifty are: Resistance 16,232.43 -- Pivot Point 16,155.52 -- Support -- 16,048.23.
The Nifty Put Call Ratio (PCR) finally stood at (0.83) for May month contract. The top five scrips with highest PCR on Dr Reddy's Laboratories (1.23), Eicher Motors (1.15), Gujarat Gas (1.12), IPCA Laboratories (1.12) and Ashok Leyland (1.05).
Among most active underlying, Reliance Industries witnessed an addition of 11,195 units of Open Interest in the May month futures contract, HDFC Bank witnessed a contraction of 2,396 units of Open Interest in the May month futures contract, ICICI Bank witnessed an addition of 2,436 units of Open Interest in the May month futures contract, Adani Ports witnessed an addition of 2,225 units of Open Interest in the May month futures contract and Tata Motors witnessed a contraction of 4,556 units of Open Interest in the May month futures contract (Provisional).
