NIFTY April futures opened the week on a negative note at 5200.30 levels and there was a selling pressure on Monday. Nifty April futures were low at 5180 levels.
However, good strength was seen from important support near 5200 levels and Nifty April futures made 52-week high at 5309.90 levels and closed the week at 5296.95 levels with 0.42% gains. Nifty March futures expired on Thursday and a long build-up was seen in Nifty April futures on Thursday and Friday, with an increase of 12.6% and 14.95% in open interest (OI), respectively. Also, April Nifty futures closed on premium for the past two trading days, indicating a long build-up in April Nifty futures.
As per international indices, Dow Jones, Nasdaq, S&P 500 and FTSE have been trading above their intermediate resistance levels, which may be positive for equity markets in Asia and Europe. Nifty PCR volume after making high at 1.13 on Tuesday, dropped down to 0.92 for Thursday and Friday trading sessions, which shows activity on the call side has been more aggressive, after Nifty March futures expiry.
Due to Nifty April futures expiry near month end on April 29 and positive global markets outlook, a long build-up was seen in 5300 and 5400 calls with 18% and 51% increase in OI & a short build-up was seen in the 5200 Put with a 12% increase in OI on Friday. India VIX also trading at 17.89 levels, indicating low fear level at current levels. Overall scenario represents bullish market with crucial support at 5200-5160 levels.
Increase in OI and positive price movement — a long build-up was seen in the IFCI stock from important support levels near 49 — and a long build-up was also seen in the APIL stock, which made 52-week high. A short build-up was seen in Unitech and DLF stocks. Healthcare, banking and FMCG have been the outperformers and the realty sector underperformed.
WHAT TO WATCH OUT FOR
INDIA
The finance ministry meet: The Finance ministry and central bank officials will meet on Monday to decide on the borrowing schedule. Traders will be watching the frequency, maturity and size of auctions.
Lancor Holdings: Lancor Holdings to consider, adopt and take on record the placement document for QIP issue.
Vakrangee Softwares: Vakrangee Softwares to issue 11 lakh equity shares having face value of Rs 10 each at a premium of Rs 60 per share to NJD Holdings.