Bulls retaliated on Tuesday after a three days of downfall and the key index S&P CNX Nifty closed the day’s trade with a gain of over a percent. Barometer managed to settle comfortably over its crucial 11,450 mark. The market managed to recover all of its yesterday’s losses, supported by buying in banking and metals stocks. Initially, market made a decent opening, as traders took some support with the finance ministry’s statement that the liquidity situation in the economy was comfortable, and it will improve further with the central bank’s move to infuse Rs 35,000 crore through the rupee-dollar swap arrangement, announced last week. Some optimism also came with a report stating that India's share in the final consumption of consumer goods is expected to double by 2030 and the favourable demographics will soon take it ahead of China in regional market dynamics.
But significant buying which emerged in last leg of trade mainly helped market to end near intraday high point. Local investors energized after Vice President of India, M. Venkaiah Naidu called for a renewed focus on agribusiness, value addition and diversification of agriculture to make farming much more sustainable, profitable and rewarding. Meanwhile, the commerce ministry has introduced an online system for exporters to obtain export licence for restricted category goods, a move aimed at promoting paperless work and ease of doing business.
All sectoral indices ended in green on NSE except IT. The top gainers from the F&O segment were GMR Infrastructure, Reliance Capital and Arvind . On the other hand, the top losers were Allahabad Bank, Tech Mahindra and Vodafone Idea. 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 1.12% and reached 16.48. The 50-share Nifty was up by 129.00 points 1.14% to settle at 11,483.25.
Nifty March 2019 futures closed at 11510.70 on Tuesday, at a premium of 27.45 points over spot closing of 11483.25, while Nifty April 2019 futures ended at 11586.60, at a premium of 103.35 points over spot closing. Nifty March futures saw a contraction of 2.40 million (mn) units, taking the total outstanding open interest (OI) to 13.04 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 0.40 points at 1369.40 compared with spot closing of 1369.00. The numbers of contracts traded were 51,334.
HDFC Bank March 2019 futures traded at a premium of 4.15 points at 2317.65 compared with spot closing of 2313.50. The numbers of contracts traded were 32,332.
Yes Bank March 2019 futures traded at a discount of 0.15 points at 254.50 compared with spot closing of 254.65. The numbers of contracts traded were 31,739.
ICICI Bank March 2019 futures traded at a premium of 0.30 points at 395.00 compared with spot closing of 394.70. The numbers of contracts traded were 25,911.
DLF March 2019 futures traded at a premium of 0.50 points at 196.90 compared with spot closing of 196.40. The numbers of contracts traded were 24,146.
Among Nifty calls, 11,500 SP from the March month expiry was the most active call with a contraction of 0.54 million open interests. Among Nifty puts, 11,400 from the March month expiry was the most active put with an addition of 1.08 million open interests. The maximum OI outstanding for Calls was at 11,500 SP (3.00mn) and that for Puts was at 11,000 SP (3.22mn). The respective Support and Resistance levels of Nifty are: Resistance 11,535.85 ---- Pivot Point 11,444.15 --- Support --- 11,391.55.
The Nifty Put Call Ratio (PCR) finally stood at 1.60 for March month contract. The top five scrips with highest PCR on OI were Oracle Financial Services Software (2.00), UPL (1.47), Cholamandalam Investment and Fin (1.35), Canara Bank (1.34) and HDFC Bank (1.27).
Among most active underlying, Reliance Industries witnessed a contraction of 9.74 million units of Open Interest in the March month futures contract, followed by ICICI Bank witnessing a contraction of 19.97 million units of Open Interest in the March month contract, State Bank of India witnessed a contraction of 9.63 million units of Open Interest in the March month contract, HDFC Bank witnessed a contraction of 1.75 million units of Open Interest in the March month contract and Infosys witnessed a contraction of 11.94 million units of Open Interest in the March month future contract.
