Key equity benchmark -- Nifty ended last trading day of the week on a positive note, after Finance Minister Piyush Goyal presented a consumption-oriented Budget. Index stated the session with small gain as traders remain energized with the finance ministry’s statement that revenue collection from Goods and Services Tax (GST) witnessed a substantial jump, crossing Rs 1 lakh crore in January from Rs 94,726 crore in December. It said this increase has been achieved despite various tax relief measures implemented by the GST Council to lower the tax burden on the consumers. Sentiments also remain optimistic with Central Statistics Office (CSO) reported that the GDP growth was 7.4 per cent in 2014-15 and 8 per cent in 2015-16. The CSO has estimated the Indian economy to expand at the rate of 8.2 per cent in the fiscal ending March 2019.
Market took an upward rally in the early noon deals, as buying further crept in with a report Indian manufacturing sector surged in the month of January, with the quickest increase in order books. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - rose to 53.9 in January from 53.2 in December. However market gave up most of its gain in the last trading hours of the session, as traders turn cautions with the government overshot the fiscal deficit target for the current financial year and announced some populist measures, which will increase fiscal burden on the exchequer. Investors also took a note with Former finance minister P Chidambaram raising doubts over the GDP figures, wondering how the economy is growing at 7 percent when the unemployment rate was the highest in 45 years.
Traders were seen piling up positions in Auto, Pharma and IT, while selling was witnessed in Media, Metal and PSU Bank. The top gainers from the F&O segment were Jubilant Foodworks, Hero MotoCorp and Jet Airways (India). On the other hand, the top losers were Dewan Housing Finance Corporation, Vedanta and Bank of India. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,500 -11,000 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 8.19% and reached 15.72. The 50-share Nifty was up by 62.70 points 0.58% to settle at 10,893.65.
Nifty February 2019 futures closed at 10914.05 on Friday, at a premium of 20.40 points over spot closing of 10893.65, while Nifty March 2019 futures ended at 10941.90, at a premium of 48.25 points over spot closing. Nifty February futures saw a contraction of 17.94 million (mn) units, taking the total outstanding open interest (OI) to 0.74 mn units. The near month derivatives contract will expire on February 28, 2019.
From the most active contracts, State Bank of India February 2019 futures traded at a premium of 2.45 points at 285.05 compared with spot closing of 282.60. The numbers of contracts traded were 67,839.
Vedanta February 2019 futures traded at a premium of 1.35 points at 162.95 compared with spot closing of 161.60. The numbers of contracts traded were 51,730.
Maruti Suzuki India February 2019 futures traded at a premium of 51.10 points at 6981.10 compared with spot closing of 6930.00. The numbers of contracts traded were 50,277.
Yes Bank February 2019 futures traded at a premium of 0.80 points at 186.10 compared with spot closing of 185.30. The numbers of contracts traded were 42,010.
Reliance Industries February 2019 futures traded at a premium of 1.90 points at 1255.00 compared with spot closing of 1253.10. The numbers of contracts traded were 38,708.
Among Nifty calls, 11,000 SP from the February month expiry was the most active call with an addition of 0.37million open interests. Among Nifty puts, 10,700 SP from the February month expiry was the most active put with a contraction of 0.03 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.16mn) and that for Puts was at 10,700 SP (2.97mn). The respective Support and Resistance levels of Nifty are: Resistance 10,980.25 ---- Pivot Point 10,896.85 --- Support --- 10,810.25.
The Nifty Put Call Ratio (PCR) finally stood at 1.35 for February month contract. The top five scrips with highest PCR on OI were Shree Cements (4.00), TCS (2.77), Ramco Cements (1.75), Axis Bank (1.73), and TV18 Broadcast (1.58).
Among most active underlying, State Bank of India witnessed an addition of 19.24 million units of Open Interest in the February month futures contract, followed by Maruti Suzuki India witnessing a contraction of 0.12 million units of Open Interest in the February month contract, Reliance Industries witnessed an addition of 1.65 million units of Open Interest in the February month contract, ICICI Bank witnessed an addition of 0.33 million units of Open Interest in the February month contract and Vedanta witnessed an addition of 12.13 million units of Open Interest in the February month future contract.
