Indian equity benchmark--Nifty --finished with notable gains on first day of the trading week, extending its winning streak to the third consecutive session. Initially, the Indian benchmark made a soft opening with positive bias, taking support with a report that foreign investors have pumped in a net sum of Rs 11,096 crore into the Indian capital markets in April so far, driven by global and domestic factors. Foreign portfolio investors (FPI) were net buyers for the previous two months as well, infusing a net sum of Rs 11,182 crore in February and Rs 45,981 crore in March. Sentiments on the street also improved on the back of a private report that financing deals for Indian infrastructure projects are surging on market expectations that the next government will come through with at least some of the spending that politicians are promising now during a heated election campaign.
In the afternoon session, the index continued the gaining monument, aided by Former Niti Aayog vice chairman Arvind Panagariya’s statement that the government has achieved 'major successes' in social sector programmes like Ayushmaan Bharat, PM-Kisan and rural electrification. Besides, he added that this government has made an 'unprecedented progress' in tackling corruption. The market participants paid no heed towards a report showing that India's retail inflation saw a marginal rise of 2.86% in March on account of increase in prices of food articles and fuel. Traders also overlooked a report that industrial growth fell to its lowest in 20 months in February, barely rising from a year ago as manufacturing contracted following muted consumer demand, and public investment slowed toward the fiscal year-end.
All sectoral indices ended in green on NSE except PSU Bank, Media and Pharma. The top gainers from the F&O segment were PC Jeweller, Infibeam Avenues and Tata Motors. On the other hand, the top losers were TV18 Broadcast, DCB Bank and Infosys. In the index option segment, maximum OI continues to be seen in the 11,800-12,200 calls and 10,800-11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.86% and reached 21.38. The 50-share Nifty was up by 46.90 points 0.40% to settle at 11,690.35.
Nifty April 2019 futures closed at 11727.75 on Monday, at a premium of 37.40 points over spot closing of 11690.35, while Nifty May 2019 futures ended at 11794.85, at a premium of 104.50 points over spot closing. Nifty April futures saw an addition of 0.42 million (mn) units, taking the total outstanding open interest (OI) to 15.49 mn units. The near month derivatives contract will expire on April 25, 2019.
From the most active contracts, Tata Consultancy Services April 2019 futures traded at a premium of 4.50 points at 2117.50 compared with spot closing of 2113.00. The numbers of contracts traded were 49,070.
Tata Motors April 2019 futures traded at a discount of 0.10 points at 231.90 compared with spot closing of 232.00. The numbers of contracts traded were 39,806.
Infosys April 2019 futures traded at a premium of 0.85 points at 729.05 compared with spot closing of 728.20. The numbers of contracts traded were 35,560.
Reliance Industries April 2019 futures traded at a premium of 7.05 points at 1346.05 compared with spot closing of 1339.00. The numbers of contracts traded were 19,340.
Tata Steel April 2019 futures traded at a premium of 0.70 points at 554.70 compared with spot closing of 554.00. The numbers of contracts traded were 18,606.
Among Nifty calls, 11,700 SP from the April month expiry was the most active call with an addition of 0.08 million open interests. Among Nifty puts, 11,600 from the April month expiry was the most active put with an addition of 0.29 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (2.63mn) and that for Puts was at 11,000 SP (2.87mn). The respective Support and Resistance levels of Nifty are: Resistance 11,713.88 ---- Pivot Point 11,681.07 --- Support --- 11,657.53.
The Nifty Put Call Ratio (PCR) finally stood at 1.29 for April month contract. The top five scrips with highest PCR on OI were Shree Cement (1.50), Bosch (1.42), Tata Motors (1.23) Bajaj Finserv (1.23) and ICICI Prudential Life Insurance (1.09).
Among most active underlying, Tata Consultancy Services witnessed a contraction of 0.97 million units of Open Interest in the April month futures contract, followed by Infosys witnessing a contraction of 4.33 million units of Open Interest in the April month contract, Tata Motors witnessed a contraction of 1.28 million units of Open Interest in the April month contract, Reliance Industries witnessed an addition of 0.17 million units of Open Interest in the April month contract and State Bank of India witnessed an addition of 1.80 million units of Open Interest in the April month future contract.