Indian equity benchmark -- Nifty – ended Friday’s trading session on a higher note, as investors continued to monitor the earnings from heavyweights companies. Index made a cautious start, as some concerns came with a private report stating that persistently high inflation remains the biggest economic concern this year even as most central banks are at or near the end game for rate rises. Meanwhile, the RBI Governor Shaktikanta Das said the Reserve Bank of India (RBI) is looking closely at banks’ business models to flag any deficiencies that could impact financial resilience, but added that domestic lenders can maintain minimum capital even under severe stress conditions.
However, index cut all of its losses in the late morning session and started the northward journey, as traders took some support with private report stating that foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the second straight month after having sold two months on a trot in January and February. In the last leg of the session, index extended its gains and settled above 18050 mark, as sentiments remained positive with Union Minister Jitendra Singh’s statement that under Prime Minister Narendra Modi, India is fast moving to become an economic powerhouse, driven by its extraordinary technological and innovative capabilities which the whole world has begun to acknowledge, particularly after the COVID vaccine success story.
Most of the sectorial indices ended in green except Consumer Durables. The top gainers from the F&O segment were PI Industries, Indus Towers and Zee Entertainment Enterprises. On the other hand, the top losers were Shriram Finance, Godrej Consumer Products and Axis Bank. In the index option segment, maximum OI continues to be seen in the 18400 -18600 calls and 17400 -17600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 4.17% and reached 10.95. The 50 share Nifty up by 149.95 points or 0.84% to settle at 18,065.
Nifty May 2023 futures closed at 18113.45 (LTP) on Friday, at a premium of 48.45 points over spot closing of 18065.00, while Nifty June 2023 futures ended at 18174.55 (LTP), at a premium of 109.55 points over spot closing. Nifty May futures saw an addition of 14,474 units, taking the total open interest (Contracts) to 1,78,634 units. The near month derivatives contract will expire on May 25, 2023. (Provisional)
From the most active contracts, Axis Bank May 2023 futures traded at a premium of 5.10 points at 865.10 (LTP) compared with spot closing of 860.00. The numbers of contracts traded were 37,300. (Provisional)
Reliance Industries May 2023 futures traded at a premium of 8.20 points at 2428.10 (LTP) compared with spot closing of 2419.90. The numbers of contracts traded were 36,190. (Provisional)
Adani Enterprises May 2023 futures traded at a premium of 14.40 points at 1936.40 (LTP) compared with spot closing of 1922.00. The numbers of contracts traded were 23,833. (Provisional)
ICICI Bank May 2023 futures traded at a premium of 4.20 points at 923.50 (LTP) compared with spot closing of 919.30. The numbers of contracts traded were 22,962. (Provisional)
Laurus Labs May 2023 futures traded at a premium of 1.00 points at 308.40 (LTP) compared with spot closing of 307.40. The numbers of contracts traded were 21,744. (Provisional)
Among, Nifty calls, 18500 SP from the May month expiry was the most active call with an addition of 14,434 units open interests. Among Nifty puts, 18000 SP from the May month expiry was the most active put with an addition of 18,465 units open interests. The maximum OI outstanding for Calls was at 18500 SP (53,808 units) and that for Puts was at 17500 SP (67,043 units). The respective Support and Resistance levels of Nifty are: Resistance 18141.00 -- Pivot Point 18013.15 -- Support 17937.15.
The Nifty Put Call Ratio (PCR) finally stood at (1.36) for May month contract. The top five scrips with highest PCR on Dalmia Bharat (2.02), Laurus Labs (1.36), J K Cement (1.32), HCL Technologies (1.21) and L&T Technology Services (1.21).
Among most active underlying, Axis Bank witnessed an addition of 12,599 units of Open Interest in the May month futures, Reliance Industries witnessed a contraction of 3,024 units of Open Interest in the May month futures, HDFC Bank witnessed an addition of 1,314 units of Open Interest in the May month futures, ICICI Bank witnessed an addition of 438 units of Open Interest in the May month futures and Kotak Mahindra Bank witnessed an addition of 2,967 units of Open Interest in the May month futures. (Provisional)
