It was a good day of trade for the market to start the new week, though choppiness persisted ahead of the RBI policy meet tomorrow but traders went for value buying and took the Nifty above the crucial psychological 7,750 mark. There was late hour rally in bluechips that helped the market to recover from low of the day. Sentiment got a lift after a monthly survey showed that India’s manufacturing activity rose to an eight-month high in March driven by strong rise in business orders, leading firms to scale up output. Investors also got some encouragement with India's latest monsoon forecasting model predicts good rainfall this year, which will end severe water shortage that is threatening power supply and cheer farmers who have been devastated by two consecutive droughts. Also, expressing hope that the Goods and Services Tax bill will be passed in the next half of the Budget session, Union Minister Venkaiah Naidu said the tax regime will push up India's economy by 1.5 to 2 percentage points.
Global factors too supported the upmove to some extent, as Asian markets ended mostly in green after solid US payroll data underpinned investor risk sentiment while dovish comments from Federal Reserve Chair Janet Yellen the previous week kept the US dollar in check. Further, European markets recovered from early losses to trade up on positive US index futures and rebound in oil.
The top gainers from the F&O segment were Idea Cellular, Adani Enterprises and S Tata Power Company. On the other hand, the top losers were Hexaware Technologies, Federal Bank and Indiabulls Housing Finance. In the index options segment, maximum OI was being seen in the 7700-8200 calls and 7000-7700 puts. In today's session, the 7900, 8000 and 8100 Call strikes saw addition of 2.28, 7.95 and 4.15 lakh shares, respectively. On the other hand, 7700, 7600 and 7500 Put strikes saw addition of 4.93, 2.19 and 3.98 lakh shares, respectively.
The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 1% and reached 17.45. The 50-share Nifty was up by 45.75 points or 0.59% to settle at 7,758.80. Nifty April 2016 futures closed at 7790.75 on Monday at a premium of 31.95 points over spot closing of 7758.80, while Nifty May 2016 futures ended at 7820.70 at a premium of 61.90 points over spot closing. Nifty April futures saw addition of 0.26 million (mn) units, taking the total outstanding open interest (OI) to 18.77 million (mn) units. The near month derivatives contract will expire on April 28, 2016.
From the most active contracts, SBI April 2016 futures traded at a premium of 1.05 points at 195.75 compared with spot closing of 194.70. The number of contracts traded were 14,338.
Tata Steel April 2016 futures traded at a premium of 1.60 points at 321.95 compared with spot closing of 320.35. The number of contracts traded were 10,530.
Reliance Capital April 2016 futures traded at a premium of 1.45 points at 386.00 compared with spot closing of 384.55. The number of contracts traded were 11,170.
ICICI Bank April 2016 futures traded at a premium of 0.20 points at 238.95 compared with spot closing of 238.75. The number of contracts traded were 9,324.
Infosys April 2016 futures traded at a premium of 3.00 points at 1246.70 compared with spot closing of 1,243.70. The number of contracts traded were 9,230.
Among Nifty calls, 7800 SP from the April month expiry was the most active call with an addition of 0.35 million open interests. Among Nifty puts, 7700 SP from the April month expiry was the most active put with an addition of 0.49 million open interests. The maximum OI outstanding for Calls was at 8000 SP (6.37 mn) and that for Puts was at 7500 SP (4.82 mn). The respective Support and Resistance levels of Nifty are: Resistance 7780.70--- Pivot Point 7742.55--- Support --- 7720.65.
The Nifty Put Call Ratio (PCR) finally stood at 0.95 for April month contract. The top five scrips with highest PCR on OI were Indian Overseas Bank (7.75), CESC (2.64), United Breweries (2), Syndicate Bank (1.52) and Bosch (1.33).
Among most active underlying, State Bank of India witnessed an addition of 1.78 million of Open Interest in the April month futures contract, followed by Tata Steel witnessing an addition of 0.42 million of Open Interest in the April month contract; Infosys witnessed an addition of 0.16 million of Open Interest in the April month contract, Reliance Infrastructure witnessed an addition of 0.35 million of Open Interest in the April month contract and Reliance Capital witnessed an addition of 0.38 million units of Open Interest in the April month's future contract.
