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Nifty ends in red on Tuesday

Nifty May 2021 futures closed at 14551.90 (LTP) on Tuesday, at a premium of 55.40 points over spot closing of 14496.50

The local benchmark -- Nifty -- ended the Tuesday’s session in red zone with the cut of over half a percent. Market made positive start amid report that Indian exporters are expecting continuous growth in the country's outbound shipments despite increase in COVID-19 cases as their order books are encouraging and there is a pick-up in demand in rich markets. Federation of Indian Export Organisations (FIEO) President S K Saraf said that in most of the states, manufacturing and exports related services have been exempted from the restrictions and inter-state movement of cargo is permitted by the central government. Market maintained its gains despite Centre for Monitoring Indian Economy (CMIE) showing that the second wave of the coronavirus pandemic and the resultant curbs have pushed India’s unemployment rate to a four-month high of 7.97%. However, in late afternoon session, market erased all its gains to turn negative, as the domestic rating agency India Ratings and Research expects the overall recovery path to be pushed back for most of the service-oriented sectors to FY22, owing to a major supply-side disruption from the second wave of COVID-19 infections. Finally, Nifty ended the session below 14500 mark.

Most of the sectoral indices ended in red except PSU Bank.The top gainers from the F&O segment were PNB, Bank of Baroda and GAIL. On the other hand, the top losers were Tata Consumer, LTTS and Tata Chemicals. 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 decreased by 2.88% and reached 23.01. The 50 share Nifty down by 137.65 points or 0.94% to settle at 14,496.50.

Nifty May 2021 futures closed at 14551.90 (LTP) on Tuesday, at a premium of 55.40 points over spot closing of 14496.50, while Nifty June 2021 futures ended at 14597.65 (LTP), at a premium of 101.15 points over spot closing. Nifty May futures saw an addition of 10,699 units, taking the total open interest (Contracts) to 1,50,727 units. The near month derivatives contract will expire on May 27, 2021 (Provisional).

From the most active contracts, SBIN May 2021 futures traded at a premium of 1.65 points at 352.75 (LTP) compared with spot closing of 351.10. The numbers of contracts traded were 41,300 (Provisional).

Reliance Industries May 2021 futures traded at a premium of 11.00 points at 1929.00 (LTP) compared with spot closing of 1918.00. The numbers of contracts traded were 35,097 (Provisional).

Bajaj Finance May 2021 futures traded at a premium of 27.55 points at 5622.25 (LTP) compared with spot closing of 5594.70. The numbers of contracts traded were 32,702 (Provisional).

Tata Steel May 2021 futures traded at a premium of 5.90 points at 1072.75 (LTP) compared with spot closing of 1066.85. The numbers of contracts traded were 31,343 (Provisional).

Tata Chemicals May 2021 futures traded at a premium of 2.80 points at 712.20 (LTP) compared with spot closing of 709.40. The numbers of contracts traded were 23,891 (Provisional).

Among, Nifty calls, 15000 SP from the May month expiry was the most active call with an addition of 4,230 units open interests. Among Nifty puts, 14000 SP from the May month expiry was the most active put with an addition of 1,328 units open interests. The maximum OI outstanding for Calls was at 15000 SP (34,765 units) and that for Puts was at 14000 SP (46,047 units). The respective Support and Resistance levels of Nifty are: Resistance 14,659.43 -- Pivot Point 14,560.47 -- Support -- 14,397.53.

The Nifty Put Call Ratio (PCR) finally stood at (1.51) for May month contract. The top five scrips with highest PCR on Mphasis (6.80), Page Industries (3.00), PVR (1.31), Bajaj Finance (1.19) and Shree Cement (1.00).

Among most active underlying, Tata Steel witnessed an addition of 1,952 units of Open Interest in the May month futures contract, Bajaj Finance witnessed an addition of 2,234 units of Open Interest in the May month futures contract, Adani ports witnessed a contraction of 239 units of Open Interest in the May month futures contract, SBIN witnessed an addition of 1,119 units of Open Interest in the May month futures contract and SAIL witnessed an addition of 1,182 units of Open Interest in the May month futures contract (Provisional).