NSE gauge -- Nifty50 -- ended higher for third straight session with a gain of over half a per cent on Wednesday on the back of buying in front line counters. Market made a positive start as traders remain energized with FICCI President Sandip Somany’s statement that the government has promised to lower corporate tax rate to 25% for all companies once Goods and Services Tax (GST) mop-up improves. However, markets trimmed some of their morning gains, as traders were concerned with the Centre for Monitoring Indian Economy’s (CMIE) latest report showing that the unemployment rate in India rose to 7.2% in February 2019, the highest since September 2016, and up from 5.9% in February 2018. The unemployment rate has climbed despite a fall in the number of job seekers.
Market continued to trade in positive terrain in the noon deals, as optimism remained among traders with the Reserve Bank of India (RBI) stating that it would infuse Rs 12,500 crore into the financial system through open market operations (OMO). The decision is based on an assessment of liquidity conditions and also of durable liquidity needs. Sentiment was also buoyed with Commerce Secretary Anup Wadhawan’s statement that the US decision to withdraw duty benefits on Indian products under the Generalized System of Preferences (GSP) programme will not have a significant impact on exports to America.
All sectoral indices ended in green on NSE except Media and Auto. The top gainers from the F&O segment were Dewan Housing Finance Corporation, Infibeam Avenues and BIRLASOFT. On the other hand, the top losers were Godfrey Phillips India, Indraprastha Gas and Jaiprakash Associates. In the index option segment, maximum OI continues to be seen in the 11,300-11,700 calls and 10,800 -11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.30% and reached 15.61. The 50-share Nifty was up by 65.55 points 0.60% to settle at 11,053.00.
Nifty March 2019 futures closed at 11086.80 on Wednesday, at a premium of 33.80 points over spot closing of 11053.00, while Nifty April 2019 futures ended at 11135.00, at a premium of 82.00 points over spot closing. Nifty March futures saw an addition of 0.27 million (mn) units, taking the total outstanding open interest (OI) to 14.71 mn units. The near month derivatives contract will expire on March 28, 2019.
From the most active contracts, Reliance Industries March 2019 futures traded at a premium of 9.10 points at 1271.10 compared with spot closing of 1262.00. The numbers of contracts traded were 40,720.
Sun Pharmaceutical Industries March 2019 futures traded at a premium of 6.15 points at 461.95 compared with spot closing of 455.80. The numbers of contracts traded were 28,114.
Indiabulls Housing Finance March 2019 futures traded at a premium of 9.80 points at 735.40 compared with spot closing of 725.60. The numbers of contracts traded were 24,065.
Dewan Housing Finance Corporation March 2019 futures traded at a premium of 1.15 points at 149.65 compared with spot closing of 148.50. The numbers of contracts traded were 22,124.
ICICI Bank March 2019 futures traded at a premium of 1.20 points at 372.45 compared with spot closing of 371.25. The numbers of contracts traded were 19,725.
Among Nifty calls, 11,000 SP from the March month expiry was the most active call with an addition of 0.12 million open interests. Among Nifty puts, 11,000 SP from the March month expiry was the most active put with an addition of 0.74 million open interests. The maximum OI outstanding for Calls was at 11,500 SP (2.08mn) and that for Puts was at 11,000 SP (2.92mn). The respective Support and Resistance levels of Nifty are: Resistance 11,077.25 ---- Pivot Point 11,038.05 --- Support --- 11,013.80.
The Nifty Put Call Ratio (PCR) finally stood at 1.32 for March month contract. The top five scrips with highest PCR on OI were Ramco Cements (2.25), Bosch (1.45), Indian Oil Corporation (1.32), Larsen & Toubro (1.26) and Cholamandalam Investment and Fin Co (1.24).
Among most active underlying, Reliance Industries witnessed an addition of 0.65 million units of Open Interest in the March month futures contract, followed by ICICI Bank witnessing a contraction of 1.79 million units of Open Interest in the March month contract, State Bank of India witnessed an addition of 4.70 million units of Open Interest in the March month contract, Sun Pharmaceutical Industries witnessed a contraction of 1.21 million units of Open Interest in the March month contract and Axis Bank witnessed an addition of 0.42 million units of Open Interest in the March month future contract.
