RBI’s decision to cut repo rate failed to cheer investors, as key equity benchmark -- Nifty -- settled flat with positive bias on Thursday, after a big choppy session. Nifty made a positive start as traders took some support with Moody's Investors Service’s statement that the direct cash transfer programme for farmers and tax relief steps for the middle-class will give a fiscal stimulus of about 0.45 percent of GDP, and support growth through increased consumption, though at a fiscal cost. Some positivity came with a report that the government has allowed export of bio-fuels from special economic zones (SEZs) and export-oriented units (EoUs) with certain conditions. In August 2018, the government imposed restrictions on export of bio-fuels for non-fuel purposes.
Market turned choppy after Reserve Bank of India’s (RBI’s) decision to lower the rate repo rate by 25 basis points to 6.25 percent. But, market managed to be in positive trajectory, taking support from the commerce ministry proposed several measures such as setting up of a separate fund, single-window e-marketplace and a law to define the role of various stakeholders, as part of the draft national logistics policy. In the dying hour of the trade market gave up most of its gains to end session on a flat note as some nervousness remained among the investors due to selling in Realty and Financial stocks.
Traders were seen piling up positions in PSU Bank, Realty and Bank, while selling was witnessed in Media, Auto and Pharma. The top gainers from the F&O segment were PC Jeweller, CG Power and Industrial Solutions and SREI Infrastructure Finance. On the other hand, the top losers were Reliance Infrastructure, Reliance Power 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 1.25% and reached 15.43. The 50-share Nifty was up by 6.95 points 0.06% to settle at 11,069.40.
Nifty February 2019 futures closed at 11093.80 on Thursday, at a premium of 24.40 points over spot closing of 11069.40, while Nifty March 2019 futures ended at 11126.00, at a premium of 56.60 points over spot closing. Nifty February futures saw an addition of 0.11 million (mn) units, taking the total outstanding open interest (OI) to 21.24 mn units. The near month derivatives contract will expire on February 28, 2019.
From the most active contracts, Reliance Industries February 2019 futures traded at a premium of 7.90 points at 1295.90 compared with spot closing of 1288.00. The numbers of contracts traded were 32,794.
Yes Bank February 2019 futures traded at a premium of 0.40 points at 177.45 compared with spot closing of 177.05. The numbers of contracts traded were 26,038.
Sun Pharmaceutical Industries February 2019 futures traded at a premium of 2.05 points at 435.85 compared with spot closing of 433.80. The numbers of contracts traded were 23,897.
Reliance Infrastructure February 2019 futures traded at a premium of 2.65 points at 110.95 compared with spot closing of 108.30. The numbers of contracts traded were 19,901.
Indiabulls Housing Finance February 2019 futures traded at a discount of 3.15 points at 644.30 compared with spot closing of 647.45. The numbers of contracts traded were 18,390.
Among Nifty calls, 11,200 SP from the February month expiry was the most active call with an addition of 0.16 million open interests. Among Nifty puts, 11,000 SP from the February month expiry was the most active put with an addition of 0.54 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.06mn) and that for Puts was at 10,700 SP (3.49mn). The respective Support and Resistance levels of Nifty are: Resistance 11,110.47 ---- Pivot Point 11,077.03 --- Support --- 11,035.97.
The Nifty Put Call Ratio (PCR) finally stood at 1.60 for February month contract. The top five scrips with highest PCR on OI were Shree Cements (2.50), TCS (2.49), Cipla (1.83), Page Industries (1.75) and Axis Bank (1.47).
Among most active underlying, Reliance Industries witnessed a contraction of 1.32 million units of Open Interest in the February month futures contract, followed by State Bank of India witnessing a contraction of 4.19 million units of Open Interest in the February month contract, Axis Bank witnessed an addition of 0.55 million units of Open Interest in the February month contract, Maruti Suzuki India witnessed a contraction of 0.02 million units of Open Interest in the February month contract and ICICI Bank witnessed a contraction of 0.13 million units of Open Interest in the February month future contract.
