EQUITY
Nifty snaps 4-day losing streak on Friday
Apr-19-2024

Indian equity benchmark -- Nifty -- ended Friday’s trading session with over half a percent gains. Index made a gap-down opening, as market participants were cautious with report stating that India's trade deficit with the Association of Southeast Asian Nations (ASEAN) has surged, more than doubling since the implementation of the Free Trade Agreement (FTA) in 2010. According to figures released by the Ministry of Commerce and Industry, India's exports to ASEAN member countries stood at $25,627.89 million in the year 2010-11, while imports from these nations amounted to $30,607.96 million. Foreign fund outflows also dented sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs 4,260.33 crore on April 18, provisional data from the NSE showed. 

However, index cut all of its losses and traded above its neutral line in afternoon session, as investors got support after India's Economic Affairs Secretary Ajay Seth to World Bank has said that despite a challenging global scenario, India's economy has shown robust growth over the past year backed by sustained consumption and investment demand. Traders found support as Krishna Srinivasan, Director, Asia and Pacific Department, at the International Monetary Fund (IMF) has said that the Indian economy is doing well and continues to be the world's bright spot and noted easing inflation and growth rate of 6.8 per cent. He also mentioned that inflation should come down to target and it is there on a durable basis. In last leg of trade, index extended its gains to end near day’s high point.

Traders were seen piling up positions in Financial Services, Bank, and Metal, while selling was witnessed in Media, Realty and Pharma. The top gainers from the F&O segment were Bajaj Finance, RBL Bank and Mahindra and Mahindra. On the other hand, the top losers Tata Communications, Lupin and ICICI Prudential Life Insurance Company. 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 3.20% and reached 13.46. The 50 share Nifty up by 151.15 points or 0.69% to settle at 22,147.00.

Nifty April 2024 futures closed at 22126.30 (LTP) on Friday, at a discount of 20.70 points over spot closing of 22147.00, while Nifty May 2024 futures ended at 22275.00 (LTP), at a premium of 128.00 points over spot closing. Nifty April futures saw a contraction of 7,308 units, taking the total open interest (Contracts) to 2,22,493 units. The near month derivatives contract will expire on April 25, 2024. (Provisional) 

From the most active contracts, HDFC Bank April 2024 futures traded at a discount of 0.20 points at 1534.00 (LTP) compared with spot closing of 1534.20. The numbers of contracts traded were 83,337. (Provisional)

Infosys April 2024 futures traded at a premium of 2.05 points at 1414.00 (LTP) compared with spot closing of 1411.95. The numbers of contracts traded were 67,637. (Provisional) 

Axis Bank April 2024 futures traded at a discount of 1.60 points at 1030.10 (LTP) compared with spot closing of 1031.70. The numbers of contracts traded were 52,539. (Provisional) 

ICICI Bank April 2024 futures traded at a discount of 0.10 points at 1067.90 (LTP) compared with spot closing of 1068.00. The numbers of contracts traded were 51,352. (Provisional) 

Reliance Industries April 2024 futures traded at a discount of 1.75 points at 2941.30 (LTP) compared with spot closing of 2943.05. The numbers of contracts traded were 45,862. (Provisional)

Among, Nifty calls, 22200 SP from the April month expiry was the most active call with an addition of 10,857 units open interests. Among Nifty puts, 22000 SP from the March month expiry was the most active put with an addition of 26,774 units open interests. The maximum OI outstanding for Calls was at 23000 SP (2,05,877 units) and that for Puts was at 22000 SP (1,63,576 units). The respective Support and Resistance levels of Nifty are: Resistance 22291.82 -- Pivot Point 22034.73 -- Support 21889.92.

The Nifty Put Call Ratio (PCR) finally stood at (0.96) for April month contract. The top five scrips with highest PCR on Vedanta (1.10), Hindustan Copper (1.00), Jindal Steel And Power (0.98), J K Cement (0.93) and Eicher Motors (0.91).

Among most active underlying, HDFC Bank witnessed a contraction of 4,615 units of Open Interest in the April month futures, ICICI Bank witnessed a contraction of 4,084 units of Open Interest in the April month futures, Infosys witnessed a contraction of 972 units of Open Interest in the April month futures, Reliance Industries witnessed a contraction of 332 units of Open Interest in the April month futures and Axis Bank witnessed an addition 7,248 units of Open Interest in the April month future. (Provisional)

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