Intensified selling towards the fag end of the day pulled key equity benchmark -- Nifty -- to finish Tuesday’s trading session in negative terrain for the fourth straight day. Nifty ended below 10,850 mark ahead of key macroeconomic data slated to be released later in the day. Nifty made cautions start as traders remained concern with the Agricultural & Processed Food Products Export Development Authority’s (Apeda) data showing that India’s exports of agricultural commodities nosedived by up to a staggering 46 per cent in volume terms due to supply glut in the international market which prompted stockists to defer their purchase plans amid expectations of further price fall. Traders reacted negatively to a private report that that India’s budgets show the government’s been fixing unrealistic revenue targets, and in the process setting itself up for falling short of fiscal deficit goals.
Market traded flat in afternoon session, as investors remain anxious with a private report which stated that India’s budgets show the government’s been fixing unrealistic revenue targets, and in the process setting itself up for falling short of fiscal deficit goals. In the dyeing hour of the trade, barometer witnessed sharp selling even as global cues remained positive. Investors ignored Electronics and IT Secretary Ajay Prakash Sawhney’s statement that new schemes introduced by the government will focus not only on manufacturing of electronics in India, but also positioning the country as an export hub.
All sectoral indices ended in red on NSE except Media, Metal and Pharma. The top gainers from the F&O segment were Dish TV India, Can Fin Homes and Jindal Steel & Power. On the other hand, the top losers were Vodafone Idea, Kaveri Seed Company and Mahanagar Gas. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,200 -10,600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.57% and reached 15.75. The 50-share Nifty was down by 57.40 points 0.53% to settle at 10,831.40.
Nifty February 2019 futures closed at 10860.45 on Tuesday, at a premium of 29.05 points over spot closing of 10831.40, while Nifty March 2019 futures ended at 10897.60, at a premium of 66.20 points over spot closing. Nifty February futures saw a contraction of 0.06 million (mn) units, taking the total outstanding open interest (OI) to 21.72 mn units. The near month derivatives contract will expire on February 28, 2019.
From the most active contracts, Axis Bank February 2019 futures traded at a premium of 1.95 points at 705.40 compared with spot closing of 703.45. The numbers of contracts traded were 28,220.
Tata Steel February 2019 futures traded at a premium of 2.50 points at 489.05 compared with spot closing of 486.55. The numbers of contracts traded were 28,166.
Indiabulls Housing Finance February 2019 futures traded at a premium of 5.80 points at 599.80 compared with spot closing of 594.00. The numbers of contracts traded were 24,297.
Reliance Industries February 2019 futures traded at a premium of 7.70 points at 1263.20 compared with spot closing of 1255.50. The numbers of contracts traded were 21,467.
Jindal Steel & Power February 2019 futures traded at a premium of 0.65 points at 141.90 compared with spot closing of 141.25. The numbers of contracts traded were 16,953.
Among Nifty calls, 10,900 SP from the February month expiry was the most active call with an addition of 0.40 million open interests. Among Nifty puts, 10,800 SP from the February month expiry was the most active put with a contraction of 0.06 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.93mn) and that for Puts was at 10,400 SP (3.12mn). The respective Support and Resistance levels of Nifty are: Resistance 10,886.93 ---- Pivot Point 10,855.37 --- Support --- 10,799.83.
The Nifty Put Call Ratio (PCR) finally stood at 1.21 for February month contract. The top five scrips with highest PCR on OI were Shree Cements (2.50), TCS (2.03), Cipla (1.91), GMR Infrastructure (1.36) and Ramco Cements (1.33).
Among most active underlying, Axis Bank witnessed an addition of 2.35 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 0.72 million units of Open Interest in the February month contract, Tata Steel witnessed an addition of 0.20 million units of Open Interest in the February month contract, State Bank of India witnessed a contraction of 2.36 million units of Open Interest in the February month contract and Maruti Suzuki India witnessed an addition of 0.03 million units of Open Interest in the February month future contract.
