After trading in narrow range throughout the day, key equity benchmark --Nifty-- ended marginally in green after two days of gains. Index made a negative start, as traders remained concern with the release of the minutes of Reserve Bank of India (RBI) last policy meet, in which governor Shaktikanta Das argued the need to look at growth concerns. However, buying further crept in with Niti Aayog’s statement that the host of reforms undertaken by the government has transformed India into the fastest-growing major economy along with the macroeconomic stability not witnessed in the past.
Market once again lost the momentum and entered into negative zone as traders turned cautions with Moody’s statement that the fresh round recapitalisation of 12 state-run banks is positive as it will help them improve their core capital but a complete turnaround is still away due to the large quantum of legacy bad loans. It said these banks are far from a complete turnaround as large volumes of problem-loans will still continue to cap improvements in profitability and capitalisation, constraining their credit profiles. However, market erased all of their losses to end slightly in green, as CriSidEx survey stated that micro and small enterprises (MSEs) are becoming more optimistic about their business prospects. The CriSidEx index rose to 128 in Q3FY19, the highest score since its inception. In comparison, the index was at 107 in Q3FY18.
All sectoral indices ended in green on NSE except Bank, Financial services and PVT Bank. The top gainers from the F&O segment were Suzlon Energy, Reliance Infrastructure and Motherson Sumi Systems. On the other hand, the top losers were Just Dial, IDBI Bank and Kaveri Seed Company. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,600 -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 3.75% and reached 15.45. The 50-share Nifty was up by 1.80 points 0.02% to settle at 10,791.65.
Nifty February 2019 futures closed at 10808.80 on Friday, at a premium of 17.15 points over spot closing of 10791.65, while Nifty March 2019 futures ended at 10847.40, at a premium of 55.75 points over spot closing. Nifty February futures saw a contraction of 0.73 million (mn) units, taking the total outstanding open interest (OI) to 20.26 mn units. The near month derivatives contract will expire on February 28, 2019.
From the most active contracts, Kotak Mahindra Bank February 2019 futures traded at a premium of 2.40 points at 1240.65 compared with spot closing of 1238.25. The numbers of contracts traded were 38,403.
Yes Bank February 2019 futures traded at a premium of 1.35 points at 222.65 compared with spot closing of 221.30. The numbers of contracts traded were 36,707.
Indiabulls Housing Finance February 2019 futures traded at a discount of 0.95 points at 680.35 compared with spot closing of 681.30. The numbers of contracts traded were 29,076.
Reliance Industries February 2019 futures traded at a premium of 4.65 points at 1236.35 compared with spot closing of 1231.70. The numbers of contracts traded were 27,657.
Tata Steel February 2019 futures traded at a premium of 0.75 points at 502.75 compared with spot closing of 502.00. The numbers of contracts traded were 19,511.
Among Nifty calls, 10,800 SP from the February month expiry was the most active call with an addition of 0.17 million open interests. Among Nifty puts, 10,700 SP from the February month expiry was the most active put with an addition of 0.05 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (4.11mn) and that for Puts was at 10,700 SP (3.57mn). The respective Support and Resistance levels of Nifty are: Resistance 10,809.33 ---- Pivot Point 10,783.87 --- Support --- 10,766.18.
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), GMR Infrastructure (1.90), Cipla (1.60), KPIT Technologies (1.59) and Wipro (1.49).
Among most active underlying, Kotak Mahindra Bank witnessed an addition of 4.98 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing a contraction of 2.25 million units of Open Interest in the February month contract, Yes Bank witnessed a contraction of 10.45 million units of Open Interest in the February month contract, Axis Bank witnessed a contraction of 1.59 million units of Open Interest in the February month contract and Tata Steel witnessed a contraction of 3.52 million units of Open Interest in the February month future contract.
