Key equity benchmark -- Nifty -- rose for the seventh consecutive session on Tuesday, closing at an over six-month high driven by gain in index heavyweights. Market made a positive start, as traders took some support with a report that the net direct tax collection figure has crossed the Rs 10 lakh crore mark as on March 16, helped by the fourth and final installment of tax payment. The entire advance tax data from across the country has not come yet. But, indices soon gave up most of its gain, as traders turned anxious with Niti Aayog CEO Amitabh Kant’s statement that India cannot achieve 9-10% Gross Domestic Product (GDP) growth without revolution in the farm sector. He said there is a need to boost investment in the agriculture sector as well as to introduce new technology and market reforms.
The selling proved short-lived as markets once again entered into green terrain in afternoon deals, as investors took encouragement with a report that an RBI-appointed panel sought suggestions from the public on long-term solutions for economic and financial sustainability of MSME sector, including ways to improve credit rating mechanism to help them raise funds at competitive rates. Investors took note of a report that the government has constituted an inter-ministerial panel for monitoring, sanctioning and implementation of projects under the Rs 10,000-crore FAME-II programme, aimed at incentivising clean mobility.
All sectoral indices ended in green on NSE except Auto and Metal. The top gainers from the F&O segment were Bank of India, Reliance Capital and Union Bank of India. On the other hand, the top losers were Just Dial, Jet Airways and Dish TV India. 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 2.41% and reached 16.49. The 50-share Nifty was up by 70.20 points 0.61% to settle at 11,532.40.
Nifty March 2019 futures closed at 11570.75 on Tuesday, at a premium of 38.35 points over spot closing of 11532.40, while Nifty April 2019 futures ended at 11627.90, at a premium of 95.50 points over spot closing. Nifty March futures saw an addition of 0.67 million (mn) units, taking the total outstanding open interest (OI) to 21.35 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 3.20 points at 1381.20 compared with spot closing of 1378.00. The numbers of contracts traded were 44,552.
State Bank of India March 2019 futures traded at a premium of 1.45 points at 304.20 compared with spot closing of 302.75. The numbers of contracts traded were 23,476.
Yes Bank March 2019 futures traded at a premium of 0.60 points at 249.95 compared with spot closing of 249.35. The numbers of contracts traded were 17,748.
Punjab National Bank March 2019 futures traded at a premium of 0.35 points at 90.85 compared with spot closing of 90.50. The numbers of contracts traded were 16,195.
Jubilant Foodworks March 2019 futures traded at a premium of 4.00 points at 1406.05 compared with spot closing of 1402.05. The numbers of contracts traded were 15,332.
Among Nifty calls, 11,500 SP from the March month expiry was the most active call with an addition of 0.07 million open interests. Among Nifty puts, 11,500 from the March month expiry was the most active put with an addition of 1.01 million open interests. The maximum OI outstanding for Calls was at 11,500 SP (2.61mn) and that for Puts was at 11,000 SP (3.81mn). The respective Support and Resistance levels of Nifty are: Resistance 11,567.08 ---- Pivot Point 11,509.17 --- Support --- 11,474.48.
The Nifty Put Call Ratio (PCR) finally stood at 1.66 for March month contract. The top five scrips with highest PCR on OI were Oracle Financial Services Software (2.00), Bajaj Finserv (1.84), Bharat Petroleum Corporation (1.63), UPL (1.51) and Axis Bank (1.40).
Among most active underlying, Reliance Industries witnessed a contraction of 3.29 million units of Open Interest in the March month futures contract, followed by State Bank of India witnessing a contraction of 0.19 million units of Open Interest in the March month contract, ICICI Bank witnessed an addition of 0.01 million units of Open Interest in the March month contract, Punjab National Bank witnessed an addition of 2.67 million units of Open Interest in the March month contract and Infosys witnessed a contraction of 0.79 million units of Open Interest in the March month future contract.
