S&P CNX --Nifty-- resumed its southbound journey as sentiments turned bearish on Monday. Market made gap-down opening, as India reported 275,306 coronavirus disease (Covid-19) cases, the highest single-day spike so far since the pandemic broke out, Worldometer showed. Further, market extended its losses, as foreign portfolio investors (FPIs) have pulled out a net Rs 4,615 crore from Indian markets in April so far amid sharp escalation in COVID-19 cases and the consequent restrictions imposed by various states, unnerving overseas investors. Sentiments remained downbeat till the end of the session, as private report stated that leading brokerages have downgraded India's GDP growth projections for the current fiscal year to as low as 10 per cent on local lockdowns threatening fragile recovery, with the resurgence of COVID-19 cases posing risks to economic recovery. Traders ignored Finance Minister Nirmala Sitharaman said she has taken inputs from various industry chambers on concerns of India Inc with regard to the management of COVID pandemic and the centre would continue to work with state governments to save lives and livelihood. She sought feedback from businesses to deal with the impact of the second COVID-19 wave on the country’s economy. Finally, Nifty ended the day’s trade with the cut of above one and half a percent.
Most of the sectoral indices ended in red except Pharma. The top gainers from the F&O segment were Granules, Apollo Hospital and Dr. Lal PathLabs. On the other hand, the top losers were Torrent Power, RBL Bank and DLF. In the index option segment, maximum OI continues to be seen in the 14700 - 16700 calls and 13,900 - 14,600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 10.20% and reached 22.49. The 50 share Nifty down by 258.40 points or 1.77% to settle at 14,359.45.
Nifty April 2021 futures closed at 14384.00 (LTP) on Monday, at a premium of 24.55 points over spot closing of 14359.45, while Nifty May 2021 futures ended at 14432.00 (LTP), at a premium of 72.55 points over spot closing. Nifty April futures saw a contraction of 3,315 units, taking the total open interest (Contracts) to 1,52,915 units. The near month derivatives contract will expire on April 29, 2021 (Provisional).
From the most active contracts, Reliance Industries April 2021 futures traded at a premium of 2.95 points at 1906.00 (LTP) compared with spot closing of 1903.05. The numbers of contracts traded were 28,120 (Provisional).
HDFC Bank April 2021 futures traded at a premium of 1.90 points at 1414.50 (LTP) compared with spot closing of 1412.60. The numbers of contracts traded were 27,502 (Provisional).
ICICI Bank April 2021 futures traded at a discount of 0.35 points at 560.05 (LTP) compared with spot closing of 560.40. The numbers of contracts traded were 27,130 (Provisional).
Infosys April 2021 futures traded at a discount of 0.85 points at 1362.15 (LTP) compared with spot closing of 1363.00. The numbers of contracts traded were 22,608 (Provisional).
SBIN April 2021 futures traded at a premium of 0.55 points at 331.00 (LTP) compared with spot closing of 330.45. The numbers of contracts traded were 19,090 (Provisional).
Among, Nifty calls, 15000 SP from the April month expiry was the most active call with an addition of 2,517 units open interests. Among Nifty puts, 14000 SP from the April month expiry was the most active put with an addition of 1,044 units open interests. The maximum OI outstanding for Calls was at 15000 SP (36,077 units) and that for Puts was at 14000 SP (50,349 units). The respective Support and Resistance levels of Nifty are: Resistance 14,430.70 -- Pivot Point 14,311.05 -- Support -- 14,239.80.
The Nifty Put Call Ratio (PCR) finally stood at (1.36) for April month contract. The top five scrips with highest PCR on Sbi Life Insurance Company (1.12), Wipro (1.05), Indigo (1.04), Bata india (1.02) and JSW Steel (0.99).
Among most active underlying, Wipro witnessed a contraction of 546 units of Open Interest in the April month futures contract followed HDFC Bank witnessed an addition of 451 units of Open Interest in the April month futures contract, Tata Steel witnessed an addition of 314 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 1,852 units of Open Interest in the April month futures contract and Tata Motors witnessed an addition of 295 units of Open Interest in the April month futures contract (Provisional).