Buying in late trade takes Nifty higher

Turnaround in last leg of trade supported Domestic index S&P CNX Nifty to snap the session with a gain of around half a percent. Earlier, the benchmark kick-started the day on a positive note, as traders took support with report that the Reserve Bank of India (RBI) has injected a total liquidity of Rs 2.98 lakh crore in the market in 2018-19. Moreover, the traders kept themselves aside from piling up positions ahead of Consumer Price Index (CPI) and Index of Industrial Production (IIP) data that will be released early today. Investors remained optimistic with the RBI’s data showing that foreign investment of Indian companies grew 18 per cent to $2.69 billion in March as compared to the year-ago period. Traders took note of a private report that Indian companies are lining up to seek dollar-denominated debt as global interest rates soften, but only a few are likely to find it as foreign investors remain wary about the credit quality of many.

However, market took U-turn and pared all of its gain in the early noon session as traders turned anxious with report that after 108 economists and former RBI Governor Raghuram Rajan, International Monetary Fund’s (IMF) Chief Economist Gita Gopinath expressed doubt over India's growth rate, saying that there are still some issues with the way India calculates it. But it was the final hour of trade, where market picked up the pace supported by RBI’s data showing that bank credit rose 13.24 percent to Rs 97.67 lakh crore for the fortnight to March 29, while deposits grew by 10.03 percent to Rs 125.72 lakh crore during the same period. Meanwhile, the Reserve Bank of India (RBI) might reach out to the Election Commission (EC) before releasing its new set of guidelines to banks that would replace its February 12 circular that the Supreme Court quashed last week.

All sectoral indices ended in green on NSE. The top gainers from the F&O segment were PC Jeweller, TV18 Broadcast and Suzlon Energy. On the other hand, the top losers were Dewan Housing Finance Corporation, CG Power and Industrial Solutions and Vodafone Idea. 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 0.19% and reached 20.99. The 50-share Nifty was up by 46.75 points 0.40% to settle at 11,643.45.

Nifty April 2019 futures closed at 11703.85 on Friday, at a premium of 60.40 points over spot closing of 11643.45, while Nifty May 2019 futures ended at 11765.50, at a premium of 122.05 points over spot closing. Nifty April futures saw a contraction of 0.24 million (mn) units, taking the total outstanding open interest (OI) to 15.08 mn units. The near month derivatives contract will expire on April 25, 2019.

From the most active contracts, Reliance Industries April 2019 futures traded at a premium of 12.50 points at 1352.50 compared with spot closing of 1340.00. The numbers of contracts traded were 28,792.

ITC April 2019 futures traded at a premium of 0.05 points at 307.45 compared with spot closing of 307.40. The numbers of contracts traded were 17,516.

Maruti Suzuki India April 2019 futures traded at a premium of 31.60 points at 7379.60 compared with spot closing of 7348.00. The numbers of contracts traded were 16,882.

Tata Motors April 2019 futures traded at a premium of 1.05 points at 216.65 compared with spot closing of 215.60. The numbers of contracts traded were 16,720.

Tata Consultancy Services April 2019 futures traded at a premium of 13.80 points at 2026.85 compared with spot closing of 2013.05. The numbers of contracts traded were 16,366.

Among Nifty calls, 11,700 SP from the April month expiry was the most active call with an addition of 0.002 million open interests. Among Nifty puts, 11,600 from the April month expiry was the most active put with an addition of 0.08 million open interests. The maximum OI outstanding for Calls was at 12,000 SP (2.95mn) and that for Puts was at 11,000 SP (3.02mn). The respective Support and Resistance levels of Nifty are: Resistance 11,674.27 ---- Pivot Point 11,626.53 --- Support --- 11,595.72.

The Nifty Put Call Ratio (PCR) finally stood at 1.24 for April month contract. The top five scrips with highest PCR on OI were Shree Cement (1.50), Bosch (1.48), Bajaj Finserv (1.15), ICICI Prudential Life Insurance (1.10) and Maruti Suzuki (1.06).

Among most active underlying, Reliance Industries witnessed a contraction of 2.34 million units of Open Interest in the April month futures contract, followed by Tata Consultancy Services witnessing a contraction of 0.13 million units of Open Interest in the April month contract, Infosys witnessed a contraction of 0.14 million units of Open Interest in the April month contract, State Bank of India witnessed a contraction of 1.16 million units of Open Interest in the April month contract and Maruti Suzuki India witnessed a contraction of 0.04 million units of Open Interest in the April month future contract.