Nifty gave powerful performance by surpassing its psychological level of 15,550 on Monday. Market made negative start, as SBI Research analysis of EPFO payroll data shows that net job creation in the economy fell by 16.9 lakh in FY21 over the previous fiscal. Additionally, India Meteorological Department (IMD) said that the arrival of monsoon over Kerala is likely to delayed by two days and it is now expected to make an onset over the state by June 3. However, market soon entered into green zone, as traders found support with Revenue Secretary Tarun Bajaj’s statement that Indian economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. Giving two scenarios, he said if Rs 1.10 lakh crore GST is collected per month, the deficit in states’ revenue would be Rs 1.50 lakh crore. If Rs 1.15 lakh crore GST is collected monthly, then that deficit would be Rs 1.25 lakh crore. So since Rs 1.58 lakh crore would be borrowed this fiscal towards compensating states, the extra borrowing, over and above what is the shortfall this year, would be utilised to make good the shortfall in states’ revenue of previous years. Further, market traded higher till the end of the session, as finance ministry expanded the scope of the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), which will now offer concessional loans to hospitals for setting up on-site oxygen generation plants.
Most of the sectoral indices ended in green except IT, Media and Auto. The top gainers from the F&O segment were Nippon Life India Asset Management, Dr. Lal PathLabs and SAIL. On the other hand, the top losers were Glenmark Pharmaceuticals, Bank of Baroda and M&M. In the index option segment, maximum OI continues to be seen in the 15600 -16500 calls and 13500 -15,300 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.97% and reached 16.89. The 50 share Nifty up by 147.15 points or 0.95% to settle at 15,582.80.
Nifty June 2021 futures closed at 15571.05 (LTP) on Monday, at a discount of 11.75 points over spot closing of 15582.80, while Nifty July 2021 futures ended at 15626.50 (LTP), at a premium of 43.70 points over spot closing. Nifty June futures saw an addition of 5,476 units, taking the total open interest (Contracts) to 1,44,074 units. The near month derivatives contract will expire on June 24, 2021(Provisional).
From the most active contracts, Reliance Industries June 2021 futures traded at a premium of 2.95 points at 2156.45 (LTP) compared with spot closing of 2153.50. The numbers of contracts traded were 1,16,678 (Provisional).
ITC June 2021 futures traded at a discount of 2.25 points at 214.75 (LTP) compared with spot closing of 217.00. The numbers of contracts traded were 27,591 (Provisional).
M&M June 2021 futures traded at a premium of 1.80 points at 810.80 (LTP) compared with spot closing of 809.00. The numbers of contracts traded were 25,037 (Provisional).
Tata Steel June 2021 futures traded at a discount of 18.05 points at 1109.00 (LTP) compared with spot closing of 1127.05. The numbers of contracts traded were 23,180 (Provisional).
SBIN June 2021 futures traded at a discount of 2.45 points at 422.05 (LTP) compared with spot closing of 424.50. The numbers of contracts traded were 22,774 (Provisional).
Among, Nifty calls, 16000 SP from the June month expiry was the most active call with a contraction of 1,131units open interests. Among Nifty puts, 15000 SP from the June month expiry was the most active put with an addition of 7,968 units open interests. The maximum OI outstanding for Calls was at 16000 SP (32,327 units) and that for Puts was at 14000 SP (39,067 units). The respective Support and Resistance levels of Nifty are: Resistance 15,668.10 -- Pivot Point 15,521.05 -- Support -- 15,435.75.
The Nifty Put Call Ratio (PCR) finally stood at (1.60) for June month contract. The top five scrips with highest PCR on P I Industries (1.21), Aarti Industries (1.18), Adani Enterprises (1.05), Asian Paints (0.90) and Indus Towers (0.89).
Among most active underlying, Reliance Industries witnessed an addition of 4,307 units of Open Interest in the June month futures contract, Tata Steel witnessed an addition of 1,967 units of Open Interest in the June month futures contract, ITC witnessed an addition of 3,387 units of Open Interest in the June month futures contract, Divi's Laboratories witnessed an addition of 744 units of Open Interest in the June month futures contract and ICICI Bank witnessed an addition of 1,351 units of Open Interest in the June month futures contract (Provisional).