Nifty settles at day’s high point; recaptures 11,000 mark

Buoyed by a rally in blue-chip heavyweights, NSE barometer -- Nifty 50 -- ended Wednesday’s trading session on higher note for straight fifth day. Barometer recaptured 11,000 mark as investors wagered on the RBI changing its policy stance to neutral. Index started the session marginally in green as local investors cheered with the finance ministry expecting economic growth to accelerate to 7.5% in 2019-20 from 7.2% projected for the current fiscal. Traders’ sentiment remained optimistic with United Nations’ latest report that India is among the several countries that stand to benefit from the ongoing trade tensions between the world's top two economies - the US and China.

Market continued upward journey to reach at fresh intraday high points in last leg of trade, taking encouragement from the Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship Dharmendra Pradhan’s statement that India has emerged as a bright spot in the global economy in the recent years. He also added with strong economy and supportive policy environment, the Government remains committed to inclusive, holistic and sustainable high economic growth. Sentiment also got boost after a report that Commerce Ministry met Export Promotion Councils to discuss various issues being faced by exporters and examine ways by which India’s merchandise exports may reach $ 325 billion by March 2019.

All sectoral indices ended in green on NSE. The top gainers from the F&O segment were Dish TV India, SRF and Reliance Power. On the other hand, the top losers were Reliance Infrastructure, Tata Chemicals and Reliance Capital. 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 0.95% and reached 15.63. The 50-share Nifty was up by 128.10 points 1.17% to settle at 11,062.45.

Nifty February 2019 futures closed at 11090.30 on Wednesday, at a premium of 27.85 points over spot closing of 11062.45 , while Nifty March 2019 futures ended at 11122.95 , at a premium of 60.50 points over spot closing. Nifty February futures saw a contraction of 2.38 million (mn) units, taking the total outstanding open interest (OI) to 21.13 mn units. The near month derivatives contract will expire on February 28, 2019.

From the most active contracts, Reliance Infrastructure February 2019 futures traded at a premium of 0.15 points at 155.15 compared with spot closing of 155.00. The numbers of contracts traded were 59,256.

Reliance Industries February 2019 futures traded at a premium of 6.90 points at 1317.45 compared with spot closing of 1310.55. The numbers of contracts traded were 28,675.

Yes Bank February 2019 futures traded at a premium of 0.35 points at 177.45 compared with spot closing of 177.10. The numbers of contracts traded were 28,026.

Jubilant Foodworks February 2019 futures traded at a premium of 2.55 points at 1293.95 compared with spot closing of 1291.40. The numbers of contracts traded were 26,366.

Lupin February 2019 futures traded at a discount of 2.60 points at 844.90 compared with spot closing of 847.50. The numbers of contracts traded were 24,593.

Among Nifty calls, 11,200 SP from the February month expiry was the most active call with a contraction of 0.33 million open interests. Among Nifty puts, 10,800 SP from the February month expiry was the most active put with an addition of 1.22 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.37mn) and that for Puts was at 10,700 SP (3.45mn). The respective Support and Resistance levels of Nifty are: Resistance 11,102.47 ---- Pivot Point 11,032.58 --- Support --- 10,992.57.

The Nifty Put Call Ratio (PCR) finally stood at 1.63 for February month contract. The top five scrips with highest PCR on OI were TCS (2.45), Shree Cements (2.25), Cipla (2.13), Ramco Cements (1.71) and Axis Bank (1.55).

Among most active underlying, Reliance Industries witnessed an addition of 1.08 million units of Open Interest in the February month futures contract, followed by Tech Mahindra witnessing an addition of 1.99 million units of Open Interest in the February month contract, Reliance Infrastructure witnessed an addition of 1.19 million units of Open Interest in the February month contract, Lupin witnessed an addition of 0.34 million units of Open Interest in the February month contract and ICICI Bank witnessed an addition of 1.76 million units of Open Interest in the February month future contract.