Nifty reclaims 14,800 as RBI keeps Repo Rates unchanged

The local benchmark -- Nifty -- ended the Wednesday's session with the gains of over half a percent and reclaimed its crucial 14,800 mark. Market made slightly positive start, as International Monetary Fund (IMF) has raised its projection for India’s economic growth in the current financial year by one percentage point to 12.5 per cent. The forecast, published in the IMF’s World Economic Outlook, suggests India would again become the fastest-growing large economy in the world. In fact, India is the only country among major world economies that is projected to grow at a double-digit rate during FY22. China comes closest, with a forecast of 8.4 per cent economic expansion. Market added gains to trade higher despite India's services sector activities eased in March as growth was hit by the detrimental impact of the coronavirus pandemic and input costs remained elevated. The seasonally-adjusted India Services Business Activity Index fell from 55.3 in February to 54.6 in March. Though the rates of expansion softened, it indicated growth for the sixth consecutive month. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction. Index remained in green zone till the end of the session, as Reserve Bank of India (RBI) has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 per cent.

All the sectoral indices ended in green. The top gainers from the F&O segment were Cholamandalam Investment, City Union Bank and JSW Steel. On the other hand, the top losers were Dr. Lal PathLabs, Adani Ports and Adani Enterprises. In the index option segment, maximum OI continues to be seen in the 14700 - 16700 calls and 13,900 - 14,600 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.84% and reached 20.25. The 50 share Nifty up by 135.55 points or 0.92% to settle at 14,819.05.

Nifty April 2021 futures closed at 14880.50 (LTP) on Wednesday, at a premium of 61.45 points over spot closing of 14819.05 , while Nifty May 2021 futures ended at 14932.45 (LTP) , at a premium of 113.40 points over spot closing. Nifty April futures saw an addition of 6,745 units, taking the total outstanding open interest (Contracts) to 1,47,714 units. The near month derivatives contract will expire on April 29, 2021 (Provisional).

From the most active contracts, Reliance Industries April 2021 futures traded at a premium of 13.55 points at 2015.10 (LTP) compared with spot closing of 2001.55. The numbers of contracts traded were 46,217 (Provisional).

Adani Ports April 2021 futures traded at a premium of 5.55 points at 818.00 (LTP) compared with spot closing of 812.45. The numbers of contracts traded were 29,060 (Provisional).

ICICI Bank April 2021 futures traded at a premium of 2.05 points at 578.80 (LTP) compared with spot closing of 576.75. The numbers of contracts traded were 23,565 (Provisional).

HDFC Bank April 2021 futures traded at a premium of 9.25 points at 1456.50 (LTP) compared with spot closing of 1447.25. The numbers of contracts traded were 22,201 (Provisional).

SBIN April 2021 futures traded at a premium of 1.90 points at 360.10 (LTP) compared with spot closing of 358.20. The numbers of contracts traded were 20,241 (Provisional).

Among, Nifty calls, 15000 SP from the April month expiry was the most active call with a contraction of 610 units open interests. Among Nifty puts, 14500 SP from the April month expiry was the most active put with an addition of 4,134 units open interests. The maximum OI outstanding for Calls was at 15000 SP (27,828 units) and that for Puts was at 14000 SP (52,499 units). The respective Support and Resistance levels of Nifty are: Resistance 14,915.95 -- Pivot Point 14,782.90 -- Support -- 14,686.00.

The Nifty Put Call Ratio (PCR) finally stood at (1.71) for April month contract. The top five scrips with highest PCR on Siemens (1.27), Amara Raja Batteries (1.27), Sbi Life Insurance Company (1.16), PVR (1.14) and BOSCH (1.10).

Among most active underlying, Adani Ports witnessed an addition of 1,805 units of Open Interest in the April month futures contract followed Adani Enterprises witnessed an addition of 259 units of Open Interest in the April month futures contract, Reliance Industries witnessed a contraction of 1,143 units of Open Interest in the April month futures contract, SBIN witnessed a contraction of 496 units of Open Interest in the April month futures contract and Tata Steel witnessed an addition of 534 units of Open Interest in the April month futures contract (Provisional).