Nifty ends higher after RBI keeps repo rate unchanged

Indian equity benchmark -- Nifty – ended Thursday’s trading session on a higher note for fifth straight day, after RBI policy outcome and weakly F&O expiry. After making a negative start, soon index made a recovery and traded above the neutral line, as traders got encouragement after the RBI announced its decision to hold the key lending rate at the exiting 6.5 per cent. Moreover, the RBI has marginally raised its GDP growth projection for FY24 to 6.5% from earlier estimate of 6.4%. Some support also came in amid report that days after launch of the Foreign Trade Policy (FTP) for 2023, leading industry bodies have said that this policy will further boost business sentiments to reach the aspirational target of India becoming a leader in exports.

In afternoon session, index trimmed most of its gains, but soon bounced back, as Reserve Bank Governor Shaktikanta Das exuded confidence that India's current account deficit (CAD), a key external sector indicator, is likely to remain moderate in the January-March quarter of 2022-23 and also eminently manageable going forward. Adding more comfort among traders, a data report showed that to promote entrepreneurship at the grass root level, banks have sanctioned more than Rs 40,700 crore to over 1.80 lakh beneficiaries under Stand-Up India Scheme in seven years. Stand up India Scheme, launched on April 5, 2016, with a focus on economic empowerment and job creation, has been extended up to 2025.

Most of the sectorial indices ended in green except IT, FMCG and Consumer Durables. The top gainers from the F&O segment were Indian Energy Exchange, Cholamandalam Investment and Finance Company and Godrej Properties. On the other hand, the top losers were Vedanta, Dabur India and Page Industries. In the index option segment, maximum OI continues to be seen in the 17900 -18100 calls and 16900 -17050 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short-term expectation of volatility decreased by 4.95% and reached 11.80. The 50 share Nifty up by 42.10 points or 0.24% to settle at 17,599.15.

Nifty April 2023 futures closed at 17650.60 (LTP) on Thursday, at a premium of 51.45 points over spot closing of 17599.15, while Nifty May 2023 futures ended at 17718.95 (LTP), at a premium of 119.80 points over spot closing. Nifty April futures saw an addition of 0. 11,598 units, taking the total open interest (Contracts) to 2,20,964 units. The near month derivatives contract will expire on April 27, 2023. (Provisional)
 
From the most active contracts, Reliance Industries April 2023 futures traded at a premium of 9.85 points at 2350.00 (LTP) compared with spot closing of 2340.15. The numbers of contracts traded were 38,448. (Provisional)
 
ICICI Bank April 2023 futures traded at a premium of 4.55 points at 879.55 (LTP) compared with spot closing of 875.00. The numbers of contracts traded were 28,384. (Provisional)
 
HDFC Bank April 2023 futures traded at a premium of 3.90 points at 1669.90 (LTP) compared with spot closing of 1666.00. The numbers of contracts traded were 24,308. (Provisional)

Bajaj Finance April 2023 futures traded at a premium of 32.70 points at 5983.70 (LTP) compared with spot closing of 5951.00. The numbers of contracts traded were 22,323. (Provisional)
 
State Bank of India April 2023 futures traded at a premium of 1.35 points at 529.05 (LTP) compared with spot closing of 527.70. The numbers of contracts traded were 21,743. (Provisional)

Among, Nifty calls, 18000 SP from the April month expiry was the most active call with an addition of 3,460 units open interests. Among Nifty puts, 17500 SP from the April month expiry was the most active put with an addition of 9,687 units open interests. The maximum OI outstanding for Calls was at 18000 SP (73,841 units) and that for Puts was at 17000 SP (1,30,872 units). The respective Support and Resistance levels of Nifty are: Resistance 17657.61 -- Pivot Point 17580.23 -- Support -- 17521.76.

The Nifty Put Call Ratio (PCR) finally stood at (1.22) for April month contract. The top five scrips with highest PCR on Siemens (1.26), Cholamandalam Investment and Finance Company (1.19), Tata Consultancy Services (1.04), Indian Energy Exchange (1.02) and Housing Development Finance Corporation (1.02).

Among most active underlying, Reliance Industries witnessed an addition of 2,597 units of Open Interest in the April month futures, HDFC Bank witnessed an addition of 69 units of Open Interest in the April month futures, ICICI Bank witnessed an addition of 1,710 units of Open Interest in the April month futures, State Bank of India witnessed an addition of 201 units of Open Interest in the April month futures and Bajaj Finance witnessed an addition of 210 units of Open Interest in the April month futures. (Provisional)