Nifty witnesses hefty gains on Monday

NSE gauge -- Nifty50 – witnessed hefty gains on Monday and finished the day’s trade with the gains of over one and half percent.  Market made optimistic start, as RBI data showed that India’s forex reserves increased by $4.23 billion to $597.509 billion for the week ended May 20 on the back of a high accretion of core currency assets. Further, market added more points to touch intraday high point, as minister of state for commerce and industry Anupriya Patel said India is fast-tracking negotiations for proposed free trade agreements with certain developed countries like the UK as well as with the European Union, and maybe by this year end, the government would be able to give a final shape to few of these pacts. Index continued its firm trade till the end with report that State finances showed improvement in 2021-22 as the consolidated gross fiscal deficit (GFD) of 26 states was lower by 31.5 per cent than a year ago. Finally nifty closed the session above 16600 mark.

All the sectoral indices ended in green. The top gainers from the F&O segment were Dixon Technologies, Jubilant FoodWorks and City Union Bank. On the other hand, the top losers were Kotak Mahindra Bank, Jindal Steel & Power and Dr. Lal PathLabs. In the index option segment, maximum OI continues to be seen in the 16950 -17250 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 6.98% and reached 19.98. The 50 share Nifty up by 308.95 points or 1.89% to settle at 16,661.40.

Nifty June 2022 futures closed at 16651.20 (LTP) on Monday, at a discount of 10.20 points over spot closing of 16661.40, while Nifty July 2022 futures ended at 16669.95 (LTP), at a premium of 8.55 points over spot closing.  Nifty June futures saw an addition of 10,062 units, taking the total open interest (contracts) to 2,34,923 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 6.50 points at 2674.50 (LTP) compared with spot closing of 2668.00. The numbers of contracts traded were 38,446 (Provisional).

Infosys June 2022 futures traded at a discount of 14.95 points at 1514.05 (LTP) compared with spot closing of 1529.00. The numbers of contracts traded were 37,296 (Provisional).

Jubilant FoodWorks June 2022 futures traded at a premium of 2.85 points at 569.50 (LTP) compared with spot closing of 566.65. The numbers of contracts traded were 37,296 (Provisional).

Tata Steel June 2022 futures traded at a discount of 51.00 points at 996.00 (LTP) compared with spot closing of 1047.00. The numbers of contracts traded were 28,621 (Provisional).

HDFC Bank June 2022 futures traded at a premium of 1.00 points at 1402.00 (LTP) compared with spot closing of 1401.00. The numbers of contracts traded were 27,314 (Provisional).

Among, Nifty calls, 17000 SP from the June month expiry was the most active call with a contraction of 2,983 units open interests. Among Nifty puts, 16500 SP from the June month expiry was the most active put with an addition of 6,709 units open interests. The maximum OI outstanding for Calls was at 17000 SP (42,931 units) and that for Puts was at 16000 SP (66,869 units). The respective Support and Resistance levels of Nifty are: Resistance 16,735.88 -- Pivot Point 16,621.02 -- Support -- 16,546.53.

The Nifty Put Call Ratio (PCR) finally stood at (1.30) for June month contract. The top five scrips with highest PCR on Atul (2.33), Hero Motocorp (1.49), Power Grid Corporation (1.25), Ashok Leyland (1.17) and Cholamandalam Investment and Fin Co (1.13).

Among most active underlying, Reliance Industries witnessed an addition of 2,506 units of Open Interest in the June month futures contract, HDFC Bank witnessed an addition of 1,199 units of Open Interest in the June month futures contract, Infosys witnessed an addition of 3,733 units of Open Interest in the June month futures contract, HDFC witnessed an addition of 5,034 units of Open Interest in the June month futures contract and M&M witnessed an addition of 3,630 units of Open Interest in the June month futures contract (Provisional).