Continuing its upward journey for the third consecutive session, Nifty -- ended the session with gains of over a percent. Market made a positive start with Union Health Minister Harsh Vardhan’s statement that India is better prepared mentally and physically this year with more experience to beat the COVID-19 pandemic as compared to 2020. Market extended its gains after the head of an India-centric American business advocacy group has said that America's corporate sector has stepped up its efforts to help India in its battle against the COVID-19 pandemic and ensure that lives are saved. Traders overlooked domestic rating agency Brickwork Ratings in its latest report has revised downwards the country’s FY22 GDP growth projection to 9 per cent from an earlier estimate of 11 per cent. It said that the deadly second wave of COVID-19 has brought an abrupt halt to the country’s nascent economic recovery from the pandemic.
Index continued its upward rally to touch intraday high point, as Asian Development Bank (ADB) in its flagship Asian Development Outlook (ADO) 2021 has stated that Indian economy is projected to grow at 11 per cent in the current financial year amid the ‘strong’ vaccine drive. Further, ADB said the economic growth in developing Asia is set to rebound to 7.3 per cent this year, supported by a healthy global recovery and an early progress on COVID-19 vaccines. The projected resurgence follows a 0.2 per cent contraction last year. Finally, Nifty ended the session above 14850 mark.
Most of the sectoral indices ended in green except Metal, Pharma and Realty. The top gainers from the F&O segment were TVS Motors, Bajaj Finance and Shriram Transport Finance Company. On the other hand, the top losers were P I Industries, Biocon and Navin Fluorine International. 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 2.17% and reached 22.58. The 50 share Nifty up by 211.50 points or 1.44% to settle at 14,864.55.Nifty April 2021 futures closed at 14846.45 (LTP) on Wednesday, at a discount of 18.10 points over spot closing of 14864.55, while Nifty May 2021 futures ended at 14900.00 (LTP), at a premium of 35.45 points over spot closing. Nifty April futures saw a contraction of 1,956 units, taking the total outstanding open interest (Contracts) to 1,10,252 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 0.85 points at 1994.00 (LTP) compared with spot closing of 1993.15. The numbers of contracts traded were 34,931 (Provisional).
Axis Bank April 2021 futures traded at a discount of 0.25 points at 705.70 (LTP) compared with spot closing of 705.95. The numbers of contracts traded were 30,703 (Provisional).
ICICI Bank April 2021 futures traded at a discount of 1.45 points at 618.25 (LTP) compared with spot closing of 619.70. The numbers of contracts traded were 27,920 (Provisional).
Bajaj Finance April 2021 futures traded at a premium of 9.00 points at 5264.00 (LTP) compared with spot closing of 5255.00. The numbers of contracts traded were 25,334 (Provisional).
HDFC Bank April 2021 futures traded at a discount of 1.30 points at 1473.70 (LTP) compared with spot closing of 1475.00. The numbers of contracts traded were 23,882 (Provisional).
Among, Nifty calls, 14900 SP from the April month expiry was the most active call with a contraction of 1,324 units open interests. Among Nifty puts, 14700 SP from the April month expiry was the most active put with an addition of 36,589 units open interests. The maximum OI outstanding for Calls was at 15000 SP (82,617 units) and that for Puts was at 14000 SP (76,683 units). The respective Support and Resistance levels of Nifty are: Resistance 14,938.22 -- Pivot Point 14,816.58 -- Support -- 14,742.92.
The Nifty Put Call Ratio (PCR) finally stood at (1.50) for April month contract. The top five scrips with highest PCR on Wipro (1.43), Indigo (1.42), Bajaj Finance (1.35), PVR (1.33) and SBI Life (1.32).
Among most active underlying, Bajaj Finance witnessed a contraction of 245 units of Open Interest in the April month futures contract, Axis Bank witnessed an addition of 342 units of Open Interest in the April month futures contract, ICICI Bank witnessed an addition of 5,044 units of Open Interest in the April month futures contract, Tata Steel witnessed a contraction of 629 units of Open Interest in the April month futures contract and SBIN witnessed an addition of 992 units of Open Interest in the April month futures contract (Provisional).
