Nifty maintains upward journey for second consecutive session

Continuing its upward journey for the second consecutive session, the local benchmark, Nifty ended the day’s trade with gain of above two percent. Market started the day on optimistic note, as traders’ mood remained upbeat with Minister of State for Finance Anurag Thakur’s statement that the economy is not in recession and India recorded the highest average growth among the G-20 nations during 2014-19. The minister also mentioned about continuous measures being taken by the government to improve the overall investment climate and boost the economic growth. Market further started climbing higher, as traders took support from Finance Minister Nirmala Sitharaman’s statement that the money raised through disinvestment will be used to develop infrastructure, which will have multiplier effect on the economy and not bridging revenue deficit.

Index extended initial gains after Niti Aayog CEO Amitabh Kant termed the Union Budget pragmatic and said the government is determined to bring Indian economy back to a high trajectory growth path. He further said if the government will be able to achieve disinvestment target of 2020-21 then the Budget will be very successful. Market carried on its strong run to touched its intraday high point, as sentiment got a boost with banks credit and deposits grew 7.21 per cent and 9.51 per cent to Rs 100.05 lakh crore and Rs 131.26 lakh crore, respectively, according to the latest Reserve Bank data. In the year-ago fortnight, banks advance stood at Rs 93.32 lakh crore, while deposits at Rs 119.85 lakh crore.

All of the NSE sectoral indices ended in green. The top gainers from the F&O segment Indiabulls Housing Finance, Titan Company and Shriram Transport Finance Company. On the other hand, the top losers were Manappuram Finance, Exide Industries and Zee Entertainment Enterprises. In the index option segment, maximum OI continues to be seen in the 12000 -12,700 calls and 11,900 - 12,350 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 8.89% and reached 14.38. The 50 share Nifty was up by 271.75 points or 2.32% to settle at 11,979.65.

Nifty February 2020 futures closed at 11966.70 (LTP) on Tuesday, at a discount of 12.95 points over spot closing of 11979.65, while Nifty March 2020 futures ended at 11996.15(LTP), at a premium of 16.50 points over spot closing. Nifty February futures saw an addition of 1.99 million (mn) units, taking the total outstanding open interest (OI) to 15.90 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).

From the most active contracts, State Bank of India February 2020 futures traded at a premium of 0.60 points at 306.50 compared with spot closing of 305.90. The numbers of contracts traded were 34,551(Provisional).

Reliance Industries February 2020 futures traded at a discount of 4.00 points at 1423.50 (LTP) compared with spot closing of 1427.50. The numbers of contracts traded were 33,216 (Provisional).

Titan Company February 2020 futures traded at a discount of 1.85 points at 1271.15(LTP) compared with spot closing of 1273.00. The numbers of contracts traded were 29,135 (Provisional).

ICICI Bank February 2020 futures traded at a premium of 2.15 points at 532.80 (LTP) compared with spot closing of 530.65. The numbers of contracts traded were 26,248 (Provisional).

Indiabulls Housing Finance February 2020 futures traded at a discount of 9.00 points at 268.00 (LTP) compared with spot closing of 277.00. The numbers of contracts traded were 25,963 (Provisional).

Among, Nifty calls, 12000 SP from the February month expiry was the most active call with a contraction of 0.26 million open interests. Among Nifty puts, 11500 from the February month expiry was the most active put with an addition of 0.18 million open interests. The maximum OI outstanding for Calls was at 12500 SP (1.92 mn) and that for Puts was at 12000 SP (2.53 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,049.40 -- Pivot Point 11,916.40 -- Support -- 11,846.65.

The Nifty Put Call Ratio (PCR) finally stood at 1.13 for February month contract. The top five scrips with highest PCR on Tata Chemicals (1.15), Bajaj Finance (1.09), Power Finance Corporation (1.08), Jubilant FoodWorks (1.02) and Bharat Petroleum Corp (1.00).

Among most active underlying, State Bank Of India witnessed an addition of 1.97 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 0.41 million units of Open Interest in the February month contract, Titan Company witnessed an addition of 1.31 million units of Open Interest in the February month contract, Bajaj Finance witnessed an addition of 0.36 million units of Open Interest in the February month contract and ICICI Bank witnessed an addition of 4.13 million units of Open Interest in the February month future contract (Provisional).