Nifty extends gaining momentum on Friday

Nifty extended its gaining momentum on last trading day of week. Market made optimistic start, as economic research think-tank Centre for Monitoring Indian Economy (CMIE) has estimated that labour participation rate (LPR) was higher in rural India during the period January to April 2022. LPR, defined as the number of persons of the labour force employed as a percentage of working age population, is 40.9 in rural India as compared to 37.4 in urban India during the period January to April 2022. Market continued to trade with positive energy, as private report stating that India’s economy maintained its momentum in April as a wider reopening from the pandemic kept rising prices from depressing demand for the time being. Activity in the services sector as well as factories gained last month, while the three-month weighted averages of monthly changes in indicators from exports to credit demand suggested enduring strength. Traders ignored private report that India's economic recovery from the COVID-19 pandemic likely stumbled again in the first quarter of this year primarily due to Omicron-related restrictions and higher inflation. In late afternoon session, index added more point to trade higher and higher. Finally, Nifty finished the day’s trade above 16350 mark.

Most of the sectoral indices ended in green except Metal and Oil &Gas. The top gainers from the F&O segment were Dr. Lal PathLabs, IndiaMART InterMESH and Whirlpool Of India. On the other hand, the top losers were GAIL, ONGC and PEL. In the index option segment, maximum OI continues to be seen in the 17400 -17650 calls and 15400 -15700 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 5.44% and reached 21.48. The 50 share Nifty up by 182.30 points or 1.13% to settle at 16,352.45.

Nifty June 2022 futures closed at 16338.00 (LTP) on Friday, at a discount of 14.45 points over spot closing of 16352.45, while Nifty July 2022 futures ended at 16355.00 (LTP), at a premium of 2.55 points over spot closing. Nifty June futures saw an addition of 5,806 units, taking the total open interest (Contracts) to 2,31,425 units. The near month derivatives contract will expire on June 30, 2022 (Provisional).

From the most active contracts, Reliance Industries June 2022 futures traded at a premium of 8.20 points at 2583.50 (LTP) compared with spot closing of 2575.30. The numbers of contracts traded were 35,623 (Provisional).

Infosys June 2022 futures traded at a discount of 14.85 points at 1451.65 (LTP) compared with spot closing of 1466.50. The numbers of contracts traded were 28,238 (Provisional).

HDFC Bank June 2022 futures traded at a discount of 0.10 points at 1393.30 (LTP) compared with spot closing of 1393.40. The numbers of contracts traded were 22,757 (Provisional).

Tata Steel June 2022 futures traded at a discount of 46.30 points at 996.70 (LTP) compared with spot closing of 1043.00. The numbers of contracts traded were 21,194 (Provisional).

Bajaj Finance June 2022 futures traded at a premium of 9.40 points at 5992.60 (LTP) compared with spot closing of 5983.20. The numbers of contracts traded were 19,669 (Provisional).

Among, Nifty calls, 16500 SP from the June month expiry was the most active call with a contraction of 1,751 units open interests. Among Nifty puts, 16000 SP from the June month expiry was the most active put with an addition of 2,733 units open interests. The maximum OI outstanding for Calls was at 17500 SP (32,399 units) and that for Puts was at 15500 SP (63,354 units). The respective Support and Resistance levels of Nifty are: Resistance 16,408.05 -- Pivot Point 16,315.00 -- Support -- 16,259.40.

The Nifty Put Call Ratio (PCR) finally stood at (1.29) for June month contract. The top five scrips with highest PCR on Atul (2.75), Torrent Power (1.76), Hero Motocorp (1.44), ACC (1.32) and Cholamandalam Investment and Fin (1.30).

Among most active underlying, Reliance Industries witnessed an addition of 3,295 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 1,406 units of Open Interest in the June month futures contract, Bajaj Finance witnessed an addition of 1,404 units of Open Interest in the June month futures contract, ICICI Bank witnessed an addition of 1,003 units of Open Interest in the June month futures contract and Infosys witnessed an addition of 3,270 units of Open Interest in the June month futures contract (Provisional).