After spending most of its time in red zone, S&P CNX -- Nifty -- ended the Monday’s session slightly in green. Market made gap down opening, as foreign investors turned net sellers in April and pulled out Rs 9,659 crore from Indian equities, spooked by the intense second wave of coronavirus and its fallout on the economy. Further, market continued its weak trade after India's manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, little changed from March's reading of 55.4.
However, in last leg of trade index erased all its losses to end the session in green zone, as the goods and services tax (GST) collections touched a record high at Rs 1.41 trillion in April, surpassing the Rs 1 trillion mark for the seventh straight month in a row during 2020-21. Besides, Ministry of Commerce & Industry in its latest data has showed that India’s merchandise exports in April 2021 stood at $30.21 billion, an increase of 197.03% over $10.17 billion in April 2020 and an increase of 16.03% over $26.04 billion in April 2019. India’s merchandise imports in April 2021 came in at $45.45 billion, with an increase of 165.99% over $17.09 billion in April 2020 and an increase of 7.22% over $42.39 billion in April 2019.
Traders were seen piling positions in Auto, FMGC and IT sector while selling was witnessed in Bank, Media and Realty sector stocks. The top gainers from the F&O segment were BHEL, Adani Enterprises and Marico. On the other hand, the top losers were Titan, SUN TVand AU Small Finance Bank. 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 2.88% and reached 23.69. The 50 share Nifty up by 3.05 points or 0.02% to settle at 14,634.15.
Nifty May 2021 futures closed at 14700.00 (LTP) on Monday, at a premium of 65.85 points over spot closing of 14634.15, while Nifty June 2021 futures ended at 14732.70 (LTP), at a premium of 98.55 points over spot closing. Nifty May futures saw an addition of 12,635 units, taking the total open interest (Contracts) to 1,46,343 units. The near month derivatives contract will expire on May 27, 2021 (Provisional).
From the most active contracts, Reliance Industries May 2021 futures traded at a premium of 7.60 points at 1963.60 (LTP) compared with spot closing of 1956.00. The numbers of contracts traded were 45,670 (Provisional).
Tata Steel May 2021 futures traded at a premium of 4.75 points at 1071.85 (LTP) compared with spot closing of 1067.10. The numbers of contracts traded were 32,893 (Provisional).
SBIN May 2021 futures traded at a premium of 2.35 points at 353.80 (LTP) compared with spot closing of 351.45. The numbers of contracts traded were 30,676 (Provisional).
Kotak Mahindra Bank May 2021 futures traded at a premium of 4.75 points at 1735.75 (LTP) compared with spot closing of 1731.00. The numbers of contracts traded were 25,544 (Provisional).
HDFC Bank May 2021 futures traded at a premium of 7.95 points at 1426.95 (LTP) compared with spot closing of 1419.00. The numbers of contracts traded were 25,233 (Provisional).
Among, Nifty calls, 15000 SP from the May month expiry was the most active call with an addition of 1,245 units open interests. Among Nifty puts, 14500 SP from the May month expiry was the most active put with an addition of 5,808 units open interests. The maximum OI outstanding for Calls was at 15000 SP (30,555 units) and that for Puts was at 14000 SP (44,667 units). The respective Support and Resistance levels of Nifty are: Resistance 14,733.25 -- Pivot Point 14,574.75 -- Support -- 14,475.65.
The Nifty Put Call Ratio (PCR) finally stood at (1.54) for May month contract. The top five scrips with highest PCR on Mphasis (6.26), Page Industries (2.00), PVR (1.40), P I Industries (1.20) and Bajaj Finance (1.20).
Among most active underlying, Tata Steel witnessed an addition of 3,224 units of Open Interest in the May month futures contract, Reliance Industries witnessed an addition of 6,913 units of Open Interest in the May month futures contract, Adani Enterprises witnessed an addition of 921 units of Open Interest in the May month futures contract, Adani ports witnessed an addition of 1,317 units of Open Interest in the May month futures contract and HDFC Bank witnessed an addition of 5,262 units of Open Interest in the May month futures contract (Provisional).