Nifty jumps 1.20% in pre-poll rally; tops 11,150 mark

NSE Bull -- Nifty50 -- jumped over 1.20 per cent on Monday to reclaim 11,150 mark amid sustained foreign fund inflow and positive global cues. The day began on a positive note, as traders remain energized as Economic Affairs Secretary Subhash Chandra Garg expressed confidence that fiscal deficit target of 3.4 per cent for 2018-19 would be met as shortfall in indirect tax collection would be compensated by lower expenditure. Domestic sentiment was buoyed on report that with Commerce and Industry minister Suresh Prabhu’s statement that the government has set a target of attracting $100 billion in foreign direct investments over the next two years. The minister said the government is conducting a sector analysis for FDI investments and is preparing suitable policies which will help in bringing foreign funds.

Market continued rally mood to reach at fresh intraday high points in last leg of trade, taking support from a report stated that Finance Ministry is working out a mechanism under which CPSEs will have to part with a portion of the proceeds of non-core asset sales as dividend to the exchequer. Domestic sentiments also remained upbeat with Piyush Goyal’s statement that the government has brought sustainable changes instead of temporary adjustments. He also said that the government took the fruits of progress to under-developed parts of the country, further highlighting that the country has become perhaps the fastest growing economy in the world from a fragile economy.

All sectoral indices ended in green on NSE except IT. The top gainers from the F&O segment were Infibeam Avenues, Godfrey Phillips India and Bharti Airtel. On the other hand, the top losers were Dewan Housing Finance Corporation, Hexaware Technologies and Just Dial. In the index option segment, maximum OI continues to be seen in the 11,200-11,600 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 14.89. The 50-share Nifty was up by 132.65 points 1.20% to settle at 11,168.05.

Nifty March 2019 futures closed at 11202.15 on Monday, at a premium of 34.10 points over spot closing of 11168.05, while Nifty April 2019 futures ended at 11255.25, at a premium of 87.20 points over spot closing. Nifty March futures saw an addition of 0.93 million (mn) units, taking the total outstanding open interest (OI) to 15.52 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 0.60 points at 1308.70 compared with spot closing of 1308.10. The numbers of contracts traded were 33,137.

HDFC Bank March 2019 futures traded at a premium of 10.40 points at 2139.60 compared with spot closing of 2129.20. The numbers of contracts traded were 15,252.

State Bank of India March 2019 futures traded at a premium of 1.10 points at 288.15 compared with spot closing of 287.05. The numbers of contracts traded were 14,713.

Maruti Suzuki India March 2019 futures traded at a premium of 38.55 points at 7123.00 compared with spot closing of 7084.45. The numbers of contracts traded were 13,564.

Axis Bank March 2019 futures traded at a premium of 2.40 points at 736.90 compared with spot closing of 734.50. The numbers of contracts traded were 13,477.

Among Nifty calls, 11,200 SP from the March month expiry was the most active call with an addition of 0.004 million open interests. Among Nifty puts, 11,100 SP from the March month expiry was the most active put with an addition of 0.72 million open interests. The maximum OI outstanding for Calls was at 11,400 SP (2.25 mn) and that for Puts was at 11,000 SP (3.79mn). The respective Support and Resistance levels of Nifty are: Resistance 11,212.68 ---- Pivot Point 11,136.27 --- Support --- 11,091.63.

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 Bajaj Finserv (1.87), Ramco Cements (1.72), Bharat Petroleum Corporation (1.56) Larsen & Toubro (1.51) and Eicher Motors (1.37).

Among most active underlying, Reliance Industries witnessed a contraction of 0.62 million units of Open Interest in the March month futures contract, followed by State Bank of India witnessing a contraction of 1.85 million units of Open Interest in the March month contract, Axis Bank witnessed a contraction of 0.65 million units of Open Interest in the March month contract, ICICI Bank witnessed an addition of 0.42 million units of Open Interest in the March month contract and Maruti Suzuki India witnessed a contraction of 0.01 million units of Open Interest in the March month future contract.