Key equity benchmark -- Nifty -- traded jubilantly on first day of the trading week, driven by gains in IT stocks and private sector lenders amid strong global cues. Index made a positive start as traders remain energized with Commerce and industry minister Suresh Prabhu’s statement that the government is making a strategy to make India a $5 trillion economy and simultaneously fine tuning the plan to take it to $10 trillion. Domestic sentiments remained upbeat with the Central Board of Indirect Taxes and Customs (CBIC) setting up three working groups to suggest ways to facilitate exports, especially through e-commerce, and improve compliance by way of curbing tax evasion.
Buying which emerged in last leg of trade mainly took Nifty near its crucial 10,900 mark. Sentiments got a lift after Niti Aayog Vice-Chairman Rajiv Kumar expressed hope that the current size of the Indian real estate market, which is already $120 billion dollar, will grow over five-fold to $650 billion by the year 2040. Local investors also cheered as the Government launched the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), to provide an assured income support to the small and marginal farmers. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year.
All sectoral indices ended in green on NSE except Realty, Media and PSU Bank. The top gainers from the F&O segment were Motherson Sumi Systems, DCB Bank and Kajaria Ceramics. On the other hand, the top losers were Adani Ports and Special Economic Zone, Reliance Communications and Jet Airways (India). 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 0.84% and reached 15.35. The 50-share Nifty was up by 88.45 points 0.82% to settle at 10,880.10.
Nifty February 2019 futures closed at 10887.05 on Monday, at a premium of 6.95 points over spot closing of 10880.10, while Nifty March 2019 futures ended at 10927.25, at a premium of 47.15 points over spot closing. Nifty February futures saw a contraction of 2.22 million (mn) units, taking the total outstanding open interest (OI) to 18.03 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 1.95 points at 229.75 compared with spot closing of 227.80. The numbers of contracts traded were 42,585.
Reliance Industries February 2019 futures traded at a premium of 3.25 points at 1234.55 compared with spot closing of 1231.30. The numbers of contracts traded were 35,473.
Tata Steel February 2019 futures traded at a premium of 1.60 points at 505.60 compared with spot closing of 504.00. The numbers of contracts traded were 25,243.
Sun Pharma February 2019 futures traded at a discount of 0.15 points at 436.60 compared with spot closing of 436.75. The numbers of contracts traded were 17,976.
Larsen & Toubro February 2019 futures traded at a discount of 1.95 points at 1276.80 compared with spot closing of 1278.75. The numbers of contracts traded were 17,924.
Among Nifty calls, 10,900 SP from the February month expiry was the most active call with a contraction of 0.47 million open interests. Among Nifty puts, 10,800 SP from the February month expiry was the most active put with an addition of 1.15 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.84mn) and that for Puts was at 10,700 SP (3.54mn). The respective Support and Resistance levels of Nifty are: Resistance 10,915.45 ---- Pivot Point 10,851.75 --- Support --- 10,816.40.
The Nifty Put Call Ratio (PCR) finally stood at 1.22 for February month contract. The top five scrips with highest PCR on OI were GMR Infrastructure (2.00), KPIT Technologies (1.53), Cipla (1.49), Wipro (1.42) and Ramco Cements (1.27).
Among most active underlying, Reliance Industries witnessed a contraction of 5.74 million units of Open Interest in the February month futures contract, followed by Yes Bank witnessing a contraction of 21.43 million units of Open Interest in the February month contract, ICICI Bank witnessed a contraction of 13.29 million units of Open Interest in the February month contract, Tata Steel witnessed a contraction of 9.27 million units of Open Interest in the February month contract and Tata Consultancy Services witnessed a contraction of 1.77 million units of Open Interest in the February month future contract.
