Barometer Nifty50 closed last trading session of the day marginally in green, after a volatile session as investors mainly stuck to index heavyweights despite positive global cues. Market made a slightly positive start but soon erased gains to enter into red trajectory. Investors failed to get any solace with India Ratings and Research’s report that the country’s economy is likely to grow a tad higher at 7.5 per cent in 2019-20 on account of steady improvement in major sectors -- industry and services. It further said Gross Domestic Product (GDP) growth would have been even better but for the global headwinds caused by an abrupt rise in crude oil prices and strengthening of the US dollar, among other factors. Market participates also ignored report that ahead of the monetary policy review, India Inc. has urged the Reserve Bank of India (RBI) to cut interest rate and reserve ratio to prop up growth. Industry chambers suggested various measures to ease tight liquidity situation and reduce high cost of credit in the light of consistently falling inflation.
Market erased all of its losses to end tad above its neutral line, as traders turned positive with a private report that eighteen micro finance non-banking financial companies (NBFC-MFIs) have pooled assets worth a combined Rs 835 crore for securitization, to tide over a liquidity problem in the sector. Some support also came with Prime Minister Narendra Modi’s statement that his government has helped create crore of employment opportunities across sectors in the past four-and-a-half years. Market participants took note of Union minister for transport Nitin Gadkari’s statement that there is need to move towards alternative fuels such as methanol, ethanol, bio- fuels and electric as it will help to reduce reliance on fossil fuels costs less.
All the sectoral indices ended in red on the NSE except IT. The top gainers from the F&O segment were Reliance Industries, Wipro and MindTree. On the other hand, the top losers were Sun Pharmaceutical Industries, Sun TV Network and Bharti Airtel. 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 increased by 1.77% and reached 16.53. The 50-share Nifty was up by 1.75 points 0.02% to settle at 10,906.95.
Nifty January 2019 futures closed at 10927.15 on Friday, at a premium of 20.20 points over spot closing of 10906.95, while Nifty February 2019 futures ended at 10963.10, at a premium of 56.15 points over spot closing. Nifty January futures saw a contraction of 0.14 million (mn) units, taking the total outstanding open interest (OI) to 24.56 mn units. The near month derivatives contract will expire on January 31, 2019.
From the most active contracts, Reliance Industries January 2019 futures traded at a premium of 0.65 points at 1186.45 compared with spot closing of 1185.80. The numbers of contracts traded were 94,204.
Sun Pharmaceutical Industries January 2019 futures traded at a premium of 1.90 points at 392.15 compared with spot closing of 390.25. The numbers of contracts traded were 85,358.
Yes Bank January 2019 futures traded flat at 198.95 compared with spot closing of 198.95. The numbers of contracts traded were 26,485.
HDFC Bank January 2019 futures traded at a premium of 8.10 points at 2138.10 compared with spot closing of 2130.00. The numbers of contracts traded were 15,774.
Sun TV Network January 2019 futures traded at a premium of 2.30 points at 526.50 compared with spot closing of 524.20. The numbers of contracts traded were 13,856.
Among Nifty calls, 11,000 SP from the January month expiry was the most active call with a contraction of 0.19 million open interests. Among Nifty puts, 10,900 SP from the January month expiry was the most active put with an addition of 0.019 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.60mn) and that for Puts was at 10,500 SP (3.64mn). The respective Support and Resistance levels of Nifty are: Resistance 10,939.37 ---- Pivot Point 10,895.78 --- Support --- 10,863.37.
The Nifty Put Call Ratio (PCR) finally stood at 1.32 for January month contract. The top five scrips with highest PCR on OI were Shree Cement (2.00), KPIT Technologies (1.58), Page Industries (1.11), Infosys (1.10) and Adani Ports (1.02).
Among most active underlying, Reliance Industries witnessed a contraction of 45,00,500 million units of Open Interest in the January month futures contract, followed by Sun Pharmaceutical Industries witnessing an addition of 91,80,600 million units of Open Interest in the January month contract, Hindustan Unilever witnessed a contraction of 2,28,000 million units of Open Interest in the January month contract, SBI witnessed a contraction of 92,61,000 million units of Open Interest in the January month contract and Axis Bank witnessed a contraction of 9,70,800 million units of Open Interest in the January month future contract.
