Nifty ends above 7,950 mark on Wednesday

Domestic equity index -- Nifty -- ended higher on account of buying by funds and retail investors. Investors sentiment remained upbeat with the SASCOF indication that  Central, western and north western parts of India are likely to get above normal rainfall, while most of the remaining parts of the country, barring some exceptions, are set to get normal rainfall. SASCOF predicted development of weak positive Indian Ocean Dipole (IOD) conditions, which favours good monsoon rainfall, in early part of monsoon season.  Further, some support also come with the Niti Aayog vice-chairman Arvind Panagariya stating that the economy is expected to grow over 8 per cent this fiscal with the forecast of above-normal monsson raising hopes of the agriculture sector's revival after two successive drought years. Besides, rise in crude oil prices and appreciation in the Indian rupee against dollar, too aided sentiments.  However, upside remained capped as investors remained cautious ahead of policy decision of the US Federal Reserve later today and the expiry of April derivative contracts on Thursday. On the global front, Asian markets ended mostly in red, as the yen strengthened and weak earnings results from iPhone maker Apple put pressure on technology stocks.  European shares followed Asia's lower on Wednesday, as technology stocks fell after worse-than expected results from Apple and Twitter.

Back home, after making a negative start, Indian equity market has recovered all its loss and entered into positive territory. Thereafter, market continued to trade choppy with marginal gain throughout the session. Finally, Nifty ended with gain of over 15 points.  The top gainers from the F&O segment were NCC, Adani Ports and Special Economic Zone and Bharti Airtel. On the other hand, the top losers were NHPC, ICICI Bank and Axis Bank. In the index options segment, maximum OI was being seen in the 7900-8200 calls and 7000-8000 puts. In today's session, while the traders preferred to exit 7800 put, heavy buildup was seen in the 8000 put. On the other hand, traders exited from 7900 Call, while 8150 call witnessed considerable OI addition.   

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.37% and reached 16.35. The 50-share Nifty was up by 17.25 points or 0.22% to settle at 7,979.90.   

Nifty April 2016 futures closed 7990.35 on Wednesday at a premium of 10.45 points over spot closing of 7,979.90, while Nifty May 2016 futures ended at 8029.95 at a premium of 50.05 points over spot closing. Nifty April futures saw contraction of 2.07 million (mn) units, taking the total outstanding open interest (OI) to 9.70 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 0.70 points at 196.75 compared with spot closing of 196.05. The number of contracts traded were 27,577.         

ICICI Bank April 2016 futures traded at a discount of 0.10 points at 245.25 compared with spot closing of 245.35. The number of contracts traded were 26,149.          

Axis Bank April 2016 futures traded at a premium of 1.10 points at 465.35 compared with spot closing of 464.25. The number of contracts traded were 35,490.                                                       

Reliance Industries April 2016 futures traded at a premium of 2.90 points at 1021.35 compared with spot closing of 1,018.45. The number of contracts traded were 17,428.         

HDFC Bank April 2016 futures traded at a premium of 1.30 points at 1125.45 compared with spot closing of 1,124.15. The number of contracts traded were 18,182.      

Among Nifty calls, 8000 SP from the March month expiry was the most active call with a contraction of 0.67 million open interests. Among Nifty puts, 7900 SP from the March month expiry was the most active put with an addition of 0.23 million open interests. The maximum OI outstanding for Calls was at 8000 SP (6.04 mn) and that for Puts was at 7700 SP (5.33 mn). The respective Support and Resistance levels of Nifty are: Resistance 8000.42 --- Pivot Point 7970.48 --- Support --- 7949.97.            

The Nifty Put Call Ratio (PCR) finally stood at 1.55 for March month contract. The top five scrips with highest PCR on OI were Bajaj Finance (2.71), Indian Overseas Bank (1.97), HDFC Bank (1.48), Mahindra & Mahindra (1.43) and Indusind Bank (1.42).  

Among most active underlying, Yes Bank witnessed a contraction of 1.87 million of Open Interest in the March month futures contract, followed by Maruti Suzuki India witnessing a contraction of 0.76 million of Open Interest in the March month contract; Axis Bank witnessed a contraction of 7.78 million of Open Interest in the March month contract, State Bank of India witnessed a contraction of 10.67 million of Open Interest in the March month contract and Reliance Industries witnessed a contraction of 4.20 million units of Open Interest in the March month's future contract.