Nifty 50 barometer made a smart recovery in the last trading hours, to end Wednesday’s session on higher note, with barometer continuing its gaining streak for the fourth straight session. Index made a gap-up start as traders remain energized with the World Bank’s forecast that India’s Gross Domestic Product (GDP) is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years. It said the growth is attributed to an upswing in consumption and investment. The bank said India will continue to be the fastest growing major economy in the world. Sentiment also remained up-beat with the finance ministry’s statement that the recovery of evaded indirect taxes shot up in 2018-19, after a low in 2017-18, the year when the goods and services tax (GST) was implemented. Recovery as a percentage of the evaded taxes dropped from 26% in 2016-17 to 14% in 2017-18. Then, it went up to 29% in 2018-19 (April to December period).
Market slipped into the negative zone in the mid-afternoon deals, as market participants remain concerned with World Bank’s projection of moderation of global growth from 3 per cent last year to 2.9 per cent this year. It described the current situation of the world economy as ‘darkening of the skies’. ‘Global growth is slowing and risks are rising. The bank thinks that skies are darkening over the global economy’. Soon market bounced back from the red zone, to trade in green as investors got some support with a World Economic Forum report stating that India is poised to become the third-largest consumer market behind only the US and China; and consumer spending in India is expected to grow from $1.5 trillion at present to nearly $6 trillion by 2030.
All the sectoral indices ended in green on the NSE except Metal, PSU bank and Media. The top gainers from the F&O segment were GMR Infrastructure, ICICI Prudential Life Insurance Company and IDBI Bank. On the other hand, the top losers were Chennai Petroleum Corporation, Steel Authority of India and Hindustan Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,300 -10,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.74% and reached 15.27. The 50-share Nifty was up by 53.00 points 0.49% to settle at 10,855.15.
Nifty January 2019 futures closed at 10877.70 on Wednesday, at a premium of 22.55 points over spot closing of 10855.15, while Nifty February 2019 futures ended at 10906.65, at a premium of 51.50 points over spot closing. Nifty January futures saw a contraction of 0.23 million (mn) units, taking the total outstanding open interest (OI) to 25.21 mn units. The near month derivatives contract will expire on January 31, 2019.
From the most active contracts, IndusInd Bank January 2019 futures traded at a premium of 8.70 points at 1608.40 compared with spot closing of 1599.70. The numbers of contracts traded were 49,121.
Yes Bank January 2019 futures traded at a premium of 0.45 points at 187.00 compared with spot closing of 186.55. The numbers of contracts traded were 43,141.
Axis Bank January 2019 futures traded at a discount of 0.40 points at 670.80 compared with spot closing of 671.20. The numbers of contracts traded were 27,732.
Reliance Industries January 2019 futures traded at a premium of 4.70 points at 1113.95 compared with spot closing of 1109.25. The numbers of contracts traded were 25,169.
Tata Steel January 2019 futures traded at a premium of 2.65 points at 481.85 compared with spot closing of 479.20. The numbers of contracts traded were 22,326.
Among Nifty calls, 11,000 SP from the January month expiry was the most active call with a contraction of 0.05 million open interests. Among Nifty puts, 10,700 SP from the January month expiry was the most active put with a contraction of 0.19 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.81mn) and that for Puts was at 10,500 SP (3.83mn). The respective Support and Resistance levels of Nifty are: Resistance 10,900.57 ---- Pivot Point 10,824.98 --- Support --- 10,779.57.
The Nifty Put Call Ratio (PCR) finally stood at 1.17 for January month contract. The top five scrips with highest PCR on OI were Torrent Pharmaceuticals (1.39), Bharti Infratel (1.15), SREI Infrastructure Finance (1.10), Axis Bank (1.08) and Ramco Cements (1.06).
Among most active underlying, IndusInd Bank witnessed an addition of 0.56 million units of Open Interest in the January month futures contract, followed by ICICI Bank witnessing an addition of 0.68 million units of Open Interest in the January month contract, Axis Bank witnessed a contraction of 0.46 million units of Open Interest in the January month contract, Reliance Industries witnessed a contraction of 0.06 million units of Open Interest in the January month contract and SBI witnessed a contraction of 1.40 million units of Open Interest in the January month future contract.
