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Nifty ends sharply lower amid US deficit fears
May-22-2025

Indian equity benchmark -- Nifty -- ended sharply lower on Thursday amid rising concerns over U.S. treasury yields. Index made a negative start and continued its southward journey following weak cues from other Asian markets amid rising U.S. treasury yields on concerns about the fiscal impact of a new U.S. tax bill on the country's deficit. Sentiments remained weak as traders avoided risky bids amid Nifty F&O weekly expiry. In afternoon session, index continued to trade in red terrain. However, index erased some of its losses in last leg of the trade and closed near 24,600 mark. Traders took note of exchange data, showing that Foreign Institutional Investors (FIIs) turned buyers on Wednesday after a day's breather. They bought equities worth Rs 2,201.79 crore. Market participants also took note of report that HSBC Flash India PMI showed that private sector growth in India moved up a gear during May, boosted by acceleration in the service economy.

Most of the sectorial indices ended in red except Media stocks. The top gainers from the F&O segment were Solar Industries India, Astral and NMDC. On the other hand, the top losers were Aditya Birla Fashion and Retail, Colgate Palmolive (India) and Piramal Enterprises. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 1.65% and reached 17.26. The 50 share Nifty down by 203.75 point or 0.82% to settle at 24,609.70.

Nifty May 2025 futures closed at 24665.10 (LTP) on Thursday, at a premium of 55.40 points over spot closing of 24609.70, while Nifty June 2025 futures ended at 24760.00 (LTP), at a premium of 150.30 points over spot closing. Nifty May futures saw an additional of 8,310 units, taking the total open interest (Contracts) to 1,52,120 units. The near month derivatives contract will expire on May 29, 2025. (Provisional) 

From the most active contracts, IndusInd Bank May 2025 futures traded at a premium of 1.00 points at 784.50 (LTP) compared with spot closing of 783.50. The numbers of contracts traded were 88,397. (Provisional) 

BSE May 2025 futures traded at a premium of 21.00 points at 7036.00 (LTP) compared with spot closing of 7015.00. The numbers of contracts traded were 37,055. (Provisional) 

Reliance Industries May 2025 futures traded at a premium of 2.80 points at 1414.30 (LTP) compared with spot closing of 1411.50. The numbers of contracts traded were 31,541. (Provisional) 

ITC May 2025 futures traded at a discount of 4.10 points at 421.40 (LTP) compared with spot closing of 425.50. The numbers of contracts traded were 26,285. (Provisional) 

InterGlobe Aviation May 2025 futures traded at a premium of 15.00 points at 5529.00 (LTP) compared with spot closing of 5514.00. The numbers of contracts traded were 21,366. (Provisional)

Among, Nifty calls, 25000 SP from the May month expiry was the most active call with an additional of 23,420 units open interests. Among Nifty puts, 24500 SP from the May month expiry was the most active put with an additional of 13,466 units open interests. The maximum OI outstanding for Calls was at 26000 SP (1,44,719 units) and that for Puts was at 24000 SP (1,10,309 units). The respective Support and Resistance levels of Nifty are: Resistance 24744.00 -- Pivot Point 24603.20 -- Support 24468.90.

The Nifty Put Call Ratio (PCR) finally stood at (0.83) for May month contract. The top five scrips with highest PCR on NCC (2.05), Prestige Estates Projects (1.59), Aarti Industries (1.48), Union Bank of India (1.42) and IndusInd Bank (1.31).

Among most active underlying IndusInd Bank witnessed an additional of 320 units of Open Interest in the May month future, BSE witnessed an additional of 1,490 units of Open Interest in the May month future, Reliance Industries witnessed an additional 2,531 units of Open Interest in the May month futures, ITC witnessed an additional of 7,539 units of Open Interest in the May month futures and HDFC Bank witnessed an additional of 98 units of Open Interest in the May month futures. (Provisional)

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