Nifty ends in green for third day

Nifty -- finished the Thursday’s trade in positive terrain. Market made a decent opening, as traders found support with Chief Economist of the International Monetary Fund (IMF) Gita Gopinath’s statement that the Reserve Bank of India (RBI)’s quantitative easing measures are a welcome move. Gopinath also said that this fiscal stance is also appropriate for India overall and that it is good that support isn’t being pulled back. She added there is evidence of normalisation of economic activities in India. Market maintained its upward monument with the corporate affairs ministry stating that the latest amendments to the insolvency law by way of an ordinance are aimed at providing an efficient alternative resolution framework for Micro, Small and Medium Enterprises (MSMEs). Pre-packaged insolvency resolution process has been introduced for stressed MSMEs.

Traders overlooked India's debt to GDP ratio increased from 74 per cent to 90 per cent during the COVID-19 pandemic, the International Monetary Fund has said, noting that it expects this to drop down to 80 per cent as a result of the country's economic recovery. In last leg of trade, index trimmed some of its gains but managed to end the session in green zone with a report stating that growth is of paramount importance now, the Reserve Bank of India said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy. 

Traders were seen piling positions in Auto, FMGC and IT sector while selling was witnessed in Pharma, PSU Bank and PVT Bank sector stocks. The top gainers from the F&O segment were JSW Steel, Jindal Steel & Power and SAIL. On the other hand, the top losers were Vodafone Idea, Amara Raja Batteries and Cholamandalam Investment. 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 increased by 0.32% and reached 20.31. The 50 share Nifty up by 54.75 points or 0.37% to settle at 14,873.80.

Nifty April 2021 futures closed at 14938.00 (LTP) on Thursday, at a premium of 64.20 points over spot closing of 14873.80, while Nifty May 2021 futures ended at 14984.70 (LTP), at a premium of 110.90 points over spot closing.  Nifty April futures saw a contraction of 898 units, taking the total open interest (Contracts) to 1,42,792 units. The near month derivatives contract will expire on April 29, 2021 (Provisional).

From the most active contracts, Tata Steel April 2021 futures traded at a premium of 6.00 points at 928.00 (LTP) compared with spot closing of 922.00. The numbers of contracts traded were 40,436 (Provisional).

Reliance Industries April 2021 futures traded at a premium of 11.10 points at 2017.50 (LTP) compared with spot closing of 2006.40. The numbers of contracts traded were 30,197 (Provisional).

JSW Steel April 2021 futures traded at a premium of 4.80 points at 621.00 (LTP) compared with spot closing of 616.20. The numbers of contracts traded were 28,161 (Provisional).

HDFC Bank April 2021 futures traded at a premium of 9.15 points at 1443.15 (LTP) compared with spot closing of 1434.00. The numbers of contracts traded were 17,007 (Provisional).

Tata Motors April 2021 futures traded at a premium of 1.40 points at 315.40 (LTP) compared with spot closing of 314.00. The numbers of contracts traded were 14,904 (Provisional).

Among, Nifty calls, 15000 SP from the April month expiry was the most active call with an addition of 1,733 units open interests. Among Nifty puts, 14500 SP from the April month expiry was the most active put with an addition of 1,324 units open interests. The maximum OI outstanding for Calls was at 15000 SP (29,487 units) and that for Puts was at 14000 SP (50,811units). The respective Support and Resistance levels of Nifty are: Resistance 14,964.93 -- Pivot Point 14,893.02 -- Support -- 14,801.88.

The Nifty Put Call Ratio (PCR) finally stood at (1.68) for April month contract. The top five scrips with highest PCR on Siemens (1.33), JSW Steel (1.27), Tata Steel (1.17), Sbi Life Insurance Company (1.15) and Indigo (1.10).

Among most active underlying, Tata Steel witnessed an addition of 619 units of Open Interest in the April month futures contract followed JSW Steel witnessed an addition of 1,328 units of Open Interest in the April month futures contract, Tata Motors witnessed an addition of 987 units of Open Interest in the April month futures contract, Adani Ports witnessed an addition of 172 units of Open Interest in the April month futures contract and Jindal Steel witnessed an addition of 308 units of Open Interest in the April month futures contract (Provisional).