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Nifty ends near day’s high point; settles above 22600 level
Apr-29-2024

Indian equity benchmark -- Nifty -- ended Monday’s trading session on a higher note amid value buying by investors. Traders turned their focus towards Federal Reserve’s policy meeting. After making slightly positive start, soon index extended its gains, as sentiments were up-beat after S&P Global Ratings in the Asia-Pacific 2Q 2024 Banking Update stated that Indian banks' credit growth, profitability and asset quality would remain robust in current fiscal reflecting strong economic growth, but they may be compelled to slow down their loan growth as deposits are not growing at a similar pace. Some support also came as private report estimates India's GDP growth at 6.6 per cent in the current fiscal helped by consumption expenditure, exports rebound and capital flows. It said the rapid growth of the middle-income class has led to rising purchasing power and even created demand for premium luxury products and services.

In afternoon session, index continued its northward journey and remained higher till the end, as traders were relieved amid a private report stating that intensifying heatwave is unlikely to significantly dent India's growth, even though it could cause some disruption in construction and farm activity. The street took a note of the Reserve Bank of India’ latest working paper titled ‘Equity Markets and Monetary Policy Surprises’ stating that equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy by the Reserve Bank. 

Most of the sectorial indices ended in green except Realty, IT and Auto stock. The top gainers from the F&O segment were ICICI Bank, Indusind Bank and State Bank of India. On the other hand, the top losers HCL Technologies, Apollo Hospitals Enterprise and Bajaj Auto. In the index option segment, maximum OI continues to be seen in the 22900 - 23100 calls and 21900 - 22100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility increased by 11.99% and reached 12.24. The 50 share Nifty up by 223.45 points or 1.00% to settle at 22,643.40.

Nifty May 2024 futures closed at 22745.15 (LTP) on Monday, at a premium of 101.75 points over spot closing of 22643.40, while Nifty June 2024 futures ended at 22839.00 (LTP), at a premium of 195.60 points over spot closing. 

Nifty May futures saw an addition of 17,838 units, taking the total outstanding open interest (Contracts) to 4,33,816 units. The near month derivatives contract will expire on May 30, 2024. Provisional

From the most active contracts, State Bank of India May 2024 futures traded at a premium of 2.00 points at 827.00 (LTP) compared with spot closing of 825.00. The numbers of contracts traded were 74,459. Provisional 

HDFC Bank May 2024 futures traded at a discount of 4.90 points at 1523.65 (LTP) compared with spot closing of 1528.55. The numbers of contracts traded were 73,851. Provisional 

ICICI Bank May 2024 futures traded at a premium of 8.85 points at 1165.25 (LTP) compared with spot closing of 1156.40. The numbers of contracts traded were 71,870. Provisional

Kotak Mahindra Bank May 2024 futures traded at a premium of 13.15 points at 1655.10 (LTP) compared with spot closing of 1641.95. The numbers of contracts traded were 43,488. Provisional

Axis Bank May 2024 futures traded at a premium of 9.70 points at 1169.40 (LTP) compared with spot closing of 1159.70. The numbers of contracts traded were 40,843. Provisional 

Among, Nifty calls, 23000 SP from the May month expiry was the most active call with an addition of 4,200 units open interests. Among Nifty puts, 22500 SP from the May month expiry was the most active put with an addition of 20,130 units open interests. The maximum OI outstanding for Calls was at 23000 SP (95,497 units) and that for Puts was at 22000 SP (1,52,658 units). The respective Support and Resistance levels of Nifty are: Resistance 22718.83 -- Pivot Point 22580.37 -- Support 22504.93.

The Nifty Put Call Ratio (PCR) finally stood at (1.42) for May month contract. The top five scrips with highest PCR on IndiaMART InterMESH  (1.50), Coromandel International (1.33), PI Industries (1.19), Eicher Motors Industries (1.18) and Can Fin Homes (1.16).

Among most active underlying, HDFC Bank witnessed an addition of 4,568 units of Open Interest in the May month futures, ICICI Bank witnessed an addition of 10,077 units of Open Interest in the May month futures, State Bank of India witnessed an addition of 2,601 units of Open Interest in the May month futures, Axis Bank witnessed an addition 2,962 units of Open Interest in the May month future and Kotak Mahindra Bank witnessed a contraction 1,725 units of Open Interest in the May month future. (Provisional)

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