Nifty displays spirited performance; reclaims 10,400 mark

The local benchmark Nifty ended the Monday’s trade with a huge gain of around two percent, reclaiming its crucial 10,400 mark, as fresh buying by investors and foreign funds amid a firm trend in other Asian bourses improved market sentiments. Positive opening in European markets too supported the rally. Back on domestic turf, sentiments remained up-beat with Commerce and Industry Minister Suresh Prabhu’s statement that India will become a $5 trillion economy in the next seven years and after that in next 7-10 years’ time may be a $10 trillion economy. Traders also took some encouragement with IMF stating that the Indian economy now seems to be on its way to recovering from disruptions caused by demonetization and roll-out of goods and services tax (GST). It further pointed out that in recent years, India’s economy has expanded strongly, due to macroeconomic policies that emphasise stability and efforts to tackle supply-side bottlenecks and structural reforms. Some support also came with report stating that the Centre is expecting to get around Rs 8,044 crore on account of dividend from Coal India as the miner's board approved payment of interim dividend for the financial year 2017-18 at a rate of Rs 16.50 per share. The miner's total payout on account of this would be to the tune Rs 10,242 crore.

All the sectoral indices ended in green on the NSE except PSU Bank. The top gainers from the F&O segment were SREI Infrastructure Finance, United Spirits and Reliance Capital. On the other hand, the top losers were IDBI Bank, Andhra Bank and Power Finance Corporation. In the index option segment, maximum OI continues to be seen in the 10,600-10,800 calls and 10,000-10,200 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.22% and reached 14.49. The 50-share Nifty was up by 194.55 points or 1.90% to settle at 10,421.40.

Nifty March 2018 futures closed at 10432.80 on Monday, at a premium of 11.40 points over spot closing of 10421.40, while Nifty April 2018 futures ended at 10462.50, at a premium of 41.10 points over spot closing. Nifty March futures saw a contraction of 0.25 million (mn) units, taking the total outstanding open interest (OI) to 22.59 mn units. The near month derivatives contract will expire on March 28, 2018.

From the most active contracts, Tata Steel March 2018 futures traded at a premium of 0.50 points at 624.00 compared with spot closing of 623.50. The numbers of contracts traded were 24,581.

State Bank of India March 2018 futures traded at a premium of 0.60 points at 254.15 compared with spot closing of 253.55. The numbers of contracts traded were 19,136.

Canara Bank March 2018 futures traded at a premium of 1.55 points at 239.55 compared with spot closing of 238.00. The numbers of contracts traded were 18,464.

Punjab National Bank March 2018 futures traded at a premium of 0.30 points at 95.10 compared with spot closing of 94.80. The numbers of contracts traded were 14,833.

Adani Enterprises March 2018 futures traded at a discount of 0.60 points at 162.90 compared with spot closing of 163.50. The numbers of contracts traded were 14,705.

Among Nifty calls, 10500 SP from the March month expiry was the most active call with a contraction of 0.64 million open interests. Among Nifty puts, 10300 SP from the March month expiry was the most active put with an addition of 1.84 million open interests. The maximum OI outstanding for Calls was at 10600 SP (5.17mn) and that for Puts was at 10000 SP (5.38mn). The respective Support and Resistance levels of Nifty are: Resistance 10,471.55 ---- Pivot Point 10,383.50 --- Support --- 10333.35.

The Nifty Put Call Ratio (PCR) finally stood at 1.02 for March month contract. The top five scrips with highest PCR on OI were Repco Home Finance (1.77), OIL (1.43), Cummins India (1.30), Andra Bank (1.18) and Allahabad Bank (1.11).

Among most active underlying, Tata Steel witnessed an addition of 0.07 million units of Open Interest in the March month futures contract, followed by State Bank of India witnessing an addition of 1.53 million units of Open Interest in the March month contract, Reliance Industries witnessed a contraction of 0.65 million units of Open Interest in the March month contract, Maruti Suzuki India witnessed an addition of 0.02 million units of Open Interest in the March month contract and ITC witnessed a contraction of 3.57 million units of Open Interest in the March month future contract.