Global slide pulled NSE barometer Nifty 50 to fall sixth day in a row to clock its longest stretch of losses in a year, amid sustained foreign fund and rising geo-political concerns. Market made a negative start, as investors remain concerned with the economic research wing of SBI stating that it is erroneous to come to a conclusion of heightened economic activity using the jump in currency in circulation (CIC). It estimated that cash in the economy at Rs 20.4 lakh crore, stressing the rural economy continues to be depressed. Barometer further extended its losses to hit fresh intraday low in afternoon trade despite a report stated that the government has set up an inter-ministerial committee headed by the finance minister to decide on exceptions and further inclusions of left-out farmers who fail to meet the existing eligibility criteria of the PM KISAN scheme. Moreover, weakness in the rupee also dampened the trading sentiment.
Market recovered some of their early losses in late trade, as traders took some solace with Chief Economic Adviser K V Subramanian’s statement that the economic growth is expected to accelerate to 7.5% in next financial year (FY20), from 7.2% projected for the current financial year (FY19). He further stated in the last four years the GDP growth rate has been 7.3% that was highest across all government since liberalisation. Traders took note of a report that India and US pledged to further boost bilateral trade and investments, as key policymakers and industrialists of both the sides huddled for a commercial dialogue and CEO forum meeting.
All sectoral indices ended in red on NSE. The top gainers from the F&O segment were Infibeam Avenues, Adani Power and Bharat Petroleum Corporation. On the other hand, the top losers were Page Industries, Indian Bank and SREI Infrastructure Finance. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,500 -10,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.36% and reached 16.46. The 50-share Nifty was down by 21.65 points 0.20% to settle at 10,724.40.
Nifty February 2019 futures closed at 10746.55 on Friday, at a premium of 22.15 points over spot closing of 10724.40, while Nifty March 2019 futures ended at 10787.75, at a premium of 63.35 points over spot closing. Nifty February futures saw an addition of 0.10 million (mn) units, taking the total outstanding open interest (OI) to 21.23 mn units. The near month derivatives contract will expire on February 28, 2019.
From the most active contracts, Yes Bank February 2019 futures traded at a premium of 2.20 points at 219.65 compared with spot closing of 217.45. The numbers of contracts traded were 74,971.
Reliance Industries February 2019 futures traded at a premium of 0.55 points at 1248.65 compared with spot closing of 1248.10. The numbers of contracts traded were 40,150.
Dr. Reddy's Laboratories February 2019 futures traded at a premium of 14.80 points at 2570.75 compared with spot closing of 2555.95. The numbers of contracts traded were 40,052.
Larsen & Toubro February 2019 futures traded at a discount of 12.75 points at 1237.25 compared with spot closing of 1250.00. The numbers of contracts traded were 19,039.
HDFC Bank February 2019 futures traded at a premium of 4.65 points at 2105.35 compared with spot closing of 2100.70. The numbers of contracts traded were 18,349.
Among Nifty calls, 10,800 SP from the February month expiry was the most active call with an addition of 0.31 million open interests. Among Nifty puts, 10,700 SP from the February month expiry was the most active put with an addition of 0.12 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (4.16mn) and that for Puts was at 10,700 SP (3.21mn). The respective Support and Resistance levels of Nifty are: Resistance 10,799.97 ---- Pivot Point 10,710.18 --- Support --- 10,634.62.
The Nifty Put Call Ratio (PCR) finally stood at 1.09 for February month contract. The top five scrips with highest PCR on OI were Shree Cements (2.50), Cipla (1.82), TCS (1.74), GMR Infrastructure (1.58) and Wipro (1.18).
Among most active underlying, Reliance Industries witnessed a contraction of 2.42 million units of Open Interest in the February month futures contract, followed by Yes Bank witnessing a contraction of 9.63 million units of Open Interest in the February month contract, Dr. Reddy's Laboratories witnessed an addition of 0.05 million units of Open Interest in the February month contract, State Bank of India witnessed a contraction of 2.27 million units of Open Interest in the February month contract and Axis Bank witnessed a contraction of 0.78 million units of Open Interest in the February month future contract.
