Nifty continues bull run; surpasses 12200 mark

12 Feb 2020 Evaluate

Indian local benchmark Nifty continued gaining streak for the second straight session on Wednesday and ended the wonderful day of trade with gain of over half a percent. Key indices begun day on a positive note, as sentiment got a boost with Finance Minister Nirmala Sitharaman’s statement that the economy is not in trouble and green shoots are visible with the country moving towards a $5 trillion economy. Market participant kept an optimistic mood with principal economic adviser at the finance ministry Sanjeev Sanyal’s statement that Indian economic growth is poised to bounce back after slipping to a more than six-year low of 4.5% in the July-September quarter as the government has taken measures to prop up investments and consumer demand.

The index continued the gaining monument, taking support with the Reserve Bank of India’s (RBI) data that showed the investments by Indian firms in foreign countries in January 2020 rose by nearly 40 per cent to $2.10 billion on a yearly basis. Indian companies had invested $1.47 billion in their overseas ventures in the same month a year ago. Finally, Nifty ended the good trade of day above its crucial 12200 mark with the report that the Minister of State for Finance Anurag Singh Thakur said that the Centre has released Rs 81,043 crore as GST compensation to states for April-September 2019. He also said that GST compensation cess collection has shown upward trend since October 2019.

Most of the NSE sectoral indices ended in green, except Media, Pharma and PSU Bank. The top gainers from the F&O segment Hindustan Unilever, Godrej Consumer Products and Mahanagar Gas. On the other hand, the top losers were Vodafone Idea, Bharat Heavy Electricals and Siemens. 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 1.86% and reached 13.62. The 50 share Nifty up by 93.30 points or 0.77% to settle at 12,201.20.

Nifty February 2020 futures closed at 12226.85 (LTP) on Wednesday, at a premium of 25.65 points over spot closing of 12201.20, while Nifty March 2020 futures ended at 12250.00 (LTP), at a premium of 48.80 points over spot closing. Nifty February futures saw an addition of 0.19 million (mn) units, taking the total outstanding open interest (OI) to 13.74 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).

From the most active contracts, Indiabulls Housing Finance February 2020 futures traded at a discount of 6.40 points at 334.00 (LTP) compared with spot closing of 340.40. The numbers of contracts traded were 52,892 (Provisional).

State Bank of India February 2020 futures traded at a premium of 1.35 points at 321.75 (LTP) compared with spot closing of 320.40. The numbers of contracts traded were 27,715 (Provisional).

Indusind Bank February 2020 futures traded at a premium of 0.50 points at 1277.50 (LTP) compared with spot closing of 1277.00. The numbers of contracts traded were 24,384 (Provisional).

ICICI Bank February 2020 futures traded at a premium of 2.10 points at 551.50 (LTP) compared with spot closing of 549.40. The numbers of contracts traded were 21,006 (Provisional).

Housing Development Finance Corporation February 2020 futures traded at a premium of 9.45 points at 2442.45 (LTP) compared with spot closing of 2433.00. The numbers of contracts traded were 20,155 (Provisional).

Among, Nifty calls, 12200 SP from the February month expiry was the most active call with an addition of 0.008 million open interests. Among Nifty puts, 12000 from the February month expiry was the most active put with an addition of 0.62 million open interests. The maximum OI outstanding for Calls was at 12500 SP (2.78 mn) and that for Puts was at 12000 SP (4.05 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,240.53 -- Pivot Point 12,192.42 -- Support -- 12,153.08.

The Nifty Put Call Ratio (PCR) finally stood at 1.29 for February month contract. The top five scrips with highest PCR on Tata Chemicals (1.38), JSW Steel (1.35), Bajaj Finance (1.30), SRF (1.20) and Kotak Mahindra Bank (1.18).

Among most active underlying, State Bank Of India witnessed an addition of 7.58 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, Indiabulls Housing Finance witnessed a contraction of 0.70 million units of Open Interest in the February month contract, ICICI Bank witnessed an addition of 3.62 million units of Open Interest in the February month contract and Hindustan Unilever witnessed an addition of 0.69 million units of Open Interest in the February month future contract (Provisional).

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