Nifty ends below 7,650 mark on Monday

Indian equity index -- Nifty -- ended lower over one and quarter percent on Monday on account of selling in banking and metal stocks. Sentiment were under pressure with a private report that Indian economy is expected to grow at 7.2 per cent in 2016-17, a tad lower than Central Statistics Office’s advance estimates of 7.6 per cent in the current fiscal due to weak investments and external headwinds. Further, depreciating rupee and rise in crude oil prices also hit the market sentiment. Besides, traders remained cautious ahead of March F&O expiry on Thursday. Meanwhile, investors were patiently waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates. On the global front, Asian markets ended mostly in red, as investors cautiously awaited US economic data and speeches by Federal Reserve officials this week that could signal more interest rate increases than expected. European markets are closed for the Easter Monday holiday.

Back home, after getting a positive opening, Nifty pared its gains and entered into negative territory. Thereafter market continued to reel under pressure throughout the day and ended session with loss of over 100 points.  The top gainers from the F&O segment were Biocon, SRF and TVS Motor Company. On the other hand, the top losers were Vedanta, Hindalco Industries and Titan Company. In the index options segment, maximum OI was being seen in the 7400-8000 calls and 6500-7700 puts. In today's session, while the traders preferred to exit 7700 put, heavy buildup was seen in the 7200 put. On the other hand, traders exited from 7500 Call, while 7750 call witnessed considerable OI addition. 

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 6.97% and reached 17.48. The 50-share Nifty was up by 101.40 points or 1.31% to settle at 7,615.10.   

Nifty March 2016 futures closed 7638.60 on Monday at a premium of 23.50 points over spot closing of 7,615.10, while Nifty April 2016 futures ended at 7687.10 at a premium of 72 points over spot closing. Nifty March futures saw contraction of 2.98 million (mn) units, taking the total outstanding open interest (OI) to 18.74 million (mn) units. The near month derivatives contract will expire on March 31, 2016.                         

From the most active contracts, SBI March 2016 futures traded at a premium of 0.10 points at 188.80 compared with spot closing of 188.70. The number of contracts traded were 25,384.             

ICICI Bank March 2016 futures traded at a discount of 0.25 points at 226.15 compared with spot closing of 226.40. The number of contracts traded were 24,826.                  

Axis Bank March 2016 futures traded at a discount of 1.10 points at 424.40 compared with spot closing of 425.50. The number of contracts traded were 23,890.                                                      

HDFC Bank March 2016 futures traded at a premium of 0.30 points at 1052.60 compared with spot closing of 1,052.30. The number of contracts traded were 18,170. 

Tata Steel March 2016 futures traded at a premium of 0.25 points at 300.20 compared with spot closing of 299.95. The number of contracts traded were 16,341.  

Among Nifty calls, 7700 SP from the March month expiry was the most active call with an addition of 0.78 million open interests. Among Nifty puts, 7600 SP from the March month expiry was the most active put with an contraction of 0.45 million open interests. The maximum OI outstanding for Calls was at 7700 SP (6.55 mn) and that for Puts was at 7600 SP (4.91 mn). The respective Support and Resistance levels of Nifty are: Resistance 7713.77 --- Pivot Point 7650.73 --- Support --- 7552.07.            

The Nifty Put Call Ratio (PCR) finally stood at 1.17 for March month contract. The top five scrips with highest PCR on OI were Indian Overseas Bank (3.23), United Breweries (2.50), Mcleod Russel India (2.36), Apollo Hospitals Enterprise (1.93) and Ultratech Cement (1.75).  

Among most active underlying, State Bank of India witnessed a contraction of 7.20 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing a contraction of 2.67 million of Open Interest in the March month contract; Tata Steel  witnessed a contraction of 4.36 million of Open Interest in the March month contract, Infosys witnessed a contraction of 0.67 million of Open Interest in the March month contract and Axis Bank witnessed a contraction of 4.81 million units of Open Interest in the March month's future contract.