S&P CNX -- Nifty -- ended the session in red on Friday. Market made a cautious start with reports that the ongoing second COVID-19 wave is affecting private equity and venture capital investments in terms of the deal numbers witnessed in April. Also, COVID data continues to be grim and the consequent extensions of lockdowns in many states may lead to mean growth. Reports that earnings in Q1 FY22 will be lower than initial estimates, also weigh down sentiments. Traders failed to took support as a private report stated that the value of foreign portfolio investors' (FPI) holdings in domestic equities reached $552 billion in three months to March 2021, a surge of 7 per cent from the preceding quarter. This was largely on the back of robust net inflows from FPIs, coupled with a strong performance of the Indian equity markets. Market continued its trade near neutral line till the end of the session, as Retailers Association of India (RAI) said workers and businesses in the retail industry are in need of urgent support as the restrictions to combat the second wave of the COVID-19 pandemic has hit them hard. With the days of the lockdown continuing to extend in various parts of the country, RAI said it is getting increasingly difficult for retailers to retain employees and to keep their businesses afloat, and there is a need to inject capital into the industry. Finally, Nifty ended the session below 14700 mark.
Most of the sectoral indices ended in red except FMGC. The top gainers from the F&O segment were Asian Paints, UPL and ITC. On the other hand, the top losers were Apollo Tyre, JSPL and NMDC. 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 0.93% and reached 20.27. The 50 share Nifty down by 18.70 points or 0.13% to settle at 14,677.80.
Nifty May 2021 futures closed at 14717.50 (LTP) on Friday, at a premium of 39.70 points over spot closing of 14677.80, while Nifty June 2021 futures ended at 14745.85 (LTP), at a premium of 68.05 points over spot closing. Nifty May futures saw a contraction of 2,300 units, taking the total open interest (OI) to 1,57,311 mn units. The near month derivatives contract will expire on May 27, 2021 (Provisional).
From the most active contracts, Tata Steel May 2021 futures traded at a premium of 4.55 points at 1134.60 (LTP) compared with spot closing of 1130.05. The numbers of contracts traded were 53,669(Provisional).
SBIN May 2021 futures traded at a premium of 0.90 points at 361.50 (LTP) compared with spot closing of 360.60. The numbers of contracts traded were 36,197 (Provisional).
UPL May 2021 futures traded at a premium of 3.10 points at 746.00 (LTP) compared with spot closing of 742.90. The numbers of contracts traded were 34,699 (Provisional).
Reliance Industries May 2021 futures traded at a premium of 4.70 points at 1941.70 (LTP) compared with spot closing of 1937.00. The numbers of contracts traded were 34,200 (Provisional).
Asian Paints May 2021 futures traded at a premium of 11.05 points at 2783.05 (LTP) compared with spot closing of 2772.00. The numbers of contracts traded were 33,055 (Provisional).
Among, Nifty calls, 15000 SP from the May month expiry was the most active call with a contraction of 290 units open interests. Among Nifty puts, 14000 SP from the May month expiry was the most active put with a contraction of 827 units open interests. The maximum OI outstanding for Calls was at 15000 SP (38,177 units) and that for Puts was at 14000 SP (56,001 units). The respective Support and Resistance levels of Nifty are: Resistance 14,754.33 -- Pivot Point 14,673.12 -- Support -- 14,596.58.
The Nifty Put Call Ratio (PCR) finally stood at (1.52) for May month contract. The top five scrips with highest PCR on Mphasis (1.86), Gujarat Gas (1.44), PVR (1.38), Godrej Properties (1.02) and IRCTC (0.88).
Among most active underlying, Tata Steel witnessed an addition of 442 units of Open Interest in the May month futures contract, UPL witnessed an addition of 1,228 units of Open Interest in the May month futures contract, Tata Motors witnessed an addition of 1,228 units of Open Interest in the May month futures contract, Jindal Steel & Power witnessed an addition of 4,518 units of Open Interest in the May month futures contract and Asian Paints witnessed an addition of 722 units of Open Interest in the May month futures contract (Provisional).