HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Nifty ends on higher note on Thursday
May-02-2024

Indian equity benchmark -- Nifty -- ended Thursday’s trading session in positive terrain with marginal gains, as market participants continued to monitor Q4FY24 earnings. After making a negative start, soon index turned positive and traded on higher note, as sentiments were positive with a private survey showing that growth in India's manufacturing sector slowed marginally in April but remained robust thanks to strong demand, prompting firms to ramp up purchases of raw materials at a near-record pace. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, dipped to 58.8 in April from a 16-year high of 59.1 in March, below a preliminary estimate for no change from the previous month. Despite softening, it was above its long-run average and in expansionary territory for a 34th month. The 50-mark separates growth from contraction. 

In afternoon session, index traded near day’s high point, as sentiments were positive after the India's Goods and Services Tax (GST) collections in gross terms hit a record high in April 2024 at Rs 2.1 lakh crore. The government had collected Rs 1.87 lakh crore as GST in the same period last year. Adding more optimism, Finance Minister Nirmala Sitharaman said GST collection breached the Rs 2 lakh crore milestone on the back of strong economic momentum and efficient tax realisation. The street overlooked reports that the Reserve Bank of India will likely delay cutting interest rates until the final quarter of the year, as inflation risks rise and the US Federal Reserve keeps rates on hold for longer. In last leg of trade, index trimmed some of its gains, but ended above its neutral line. 

Traders were seen piling up positions in Auto, Metal and Pharma, while selling was witnessed in Media, Bank and PSU Bank. The top gainers from the F&O segment were Cholamandalam Investment and Finance Company, REC and IndiaMART InterMESH. On the other hand, the top losers Godrej Properties, Kotak Mahindra Bank and Ramco Cements. In the index option segment, maximum OI continues to be seen in the 23400 - 23600 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 4.46% and reached 13.45. The 50 share Nifty up by 43.35 points or 0.19% to settle at 22,648.20.

Nifty May 2024 futures closed at 22779.95 (LTP) on Thursday, at a premium of 131.75 points over spot closing of 22648.20, while Nifty June 2024 futures ended at 22877.00 (LTP), at a premium of 228.80 points over spot closing. Nifty May futures saw an addition of 13,830 units, taking the total outstanding open interest (Contracts) to 4,44,851 units. The near month derivatives contract will expire on May 30, 2024. (Provisional) 

From the most active contracts, Kotak Mahindra Bank May 2024 futures traded at a premium of 15.40 points at 1593.40 (LTP) compared with spot closing of 1578.00. The numbers of contracts traded were 70,710. (Provisional) 

Adani Ports and Special Economic Zone May 2024 futures traded at a premium of 14.35 points at 1355.85 (LTP) compared with spot closing of 1341.50. The numbers of contracts traded were 46,353. (Provisional) 

REC May 2024 futures traded at a premium of 4.75 points at 556.75 (LTP) compared with spot closing of 552.00. The numbers of contracts traded were 41,460. (Provisional) 

HDFC Bank May 2024 futures traded at a discount of 8.90 points at 1524.00 (LTP) compared with spot closing of 1532.90. The numbers of contracts traded were 40,210. (Provisional) 

ICICI Bank May 2024 futures traded at a premium of 9.70 points at 1149.20 (LTP) compared with spot closing of 1139.50. The numbers of contracts traded were 37,701. (Provisional)

Among, Nifty calls, 23000 SP from the May month expiry was the most active call with a contraction of 817 units open interests. Among Nifty puts, 22500 SP from the May month expiry was the most active put with an addition of 2,179 units open interests. The maximum OI outstanding for Calls was at 23500 SP (1,03,993 units) and that for Puts was at 22000 SP (1,39,288 units). The respective Support and Resistance levels of Nifty are: Resistance 22,716.52 -- Pivot Point 22,642.18 -- Support 22,573.87.

The Nifty Put Call Ratio (PCR) finally stood at (1.38) for May month contract. The top five scrips with highest PCR on Coromandel International (1.54), Cummins India (1.38), REC (1.30), Indusind Bank (1.06) and Eicher Motors (1.06).

Among most active underlying, REC witnessed an addition of 4,980 units of Open Interest in the May month futures, Kotak Mahindra Bank witnessed an addition of 16,340 units of Open Interest in the May month futures, Power Finance Corporation witnessed an addition of 1,042 units of Open Interest in the May month futures, HDFC Bank witnessed a contraction 5,802 units of Open Interest in the May month future and ICICI Bank witnessed a contraction 658 units of Open Interest in the May month future. (Provisional)

  RELATED NEWS >>