Nifty continued its lethargic mood for fourth straight day and finished the day’s trade on an unimpressive note by losing 53.30 points. The start of the day was on a negative note, as traders were cautious with the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) continued to decline and hit a nearly 11-year low of Rs 64,537 crore till the end of December 2019. Further, market started declining to trade near its intraday low point in afternoon deals, as International Monetary Fund (IMF) stated that the goods and services tax (GST) collections in India have been below potential. The organisation said that multiple rates along with exemptions and implementation challenges have affected the GST collections.
However, in the last leg of the trading session, market managed to cut most of its losses, taking support with US-based think tank World Population Review report showing that India emerged as the world's fifth largest economy by overtaking the UK and France in 2019. Traders also got some solace after Union Finance Minister Nirmala Sitharaman defended the fiscal deficit figures in the union budget and termed it as absolutely realistic. She noted that the government has been absolutely realistic both on the score of revenue generation and on the score of what can spend or borrow, so figures therefore are absolutely realistic keeping in mind the economy.
Most of the NSE sectoral indices ended in red, except IT and Media. The top gainers from the F&O segment United Spirits, Bharat Electronics and Apollo Hospitals Enterprise. On the other hand, the top losers were Bharti Infratel, Vodafone Idea and Yes Bank. 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 increased by 0.66% and reached 14.51. The 50 share Nifty down by 53.30 points or 0.44% to settle at 11,992.50.
Nifty February 2020 futures closed at 12020.05 (LTP) on Tuesday, at a premium of 27.55 points over spot closing of 11992.50, while Nifty March 2020 futures ended at 12031.05 (LTP), at a premium of 38.55 points over spot closing. Nifty February futures saw an addition of 1.00 million (mn) units, taking the total outstanding open interest (OI) to 13.32 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).
From the most active contracts, Indusind Bank February 2020 futures traded at a premium of 3.25 points at 1141.40 compared with spot closing of 1138.15. The numbers of contracts traded were 34,455 (Provisional).
State Bank of India February 2020 futures traded at a premium of 0.75 points at 318.80 (LTP) compared with spot closing of 318.05. The numbers of contracts traded were 32,068 (Provisional).
Muthoot Finance February 2020 futures traded at a premium of 3.15 points at 867.05 (LTP) compared with spot closing of 863.90. The numbers of contracts traded were 22,343 (Provisional).
Yes Bank February 2020 futures traded at a discount of 3.50 points at 31.30 (LTP) compared with spot closing of 34.80. The numbers of contracts traded were 21,729 (Provisional).
Bharti Airtel February 2020 futures traded at a premium of 1.50 points at 550.50 (LTP) compared with spot closing of 549.00. The numbers of contracts traded were 21,542 (Provisional).
Among, Nifty calls, 12000 SP from the February month expiry was the most active call with an addition of 0.74 million open interests. Among Nifty puts, 11900 SP from the February month expiry was the most active put with a contraction of 0.37 million open interests. The maximum OI outstanding for Calls was at 12200 SP (2.86 mn) and that for Puts was at 12000 SP (3.36 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,046.15 -- Pivot Point 11,977.10 -- Support -- 11,923.45
The Nifty Put Call Ratio (PCR) finally stood at 1.03 for February month contract. The top five scrips with highest PCR on Tata Consultancy Services (1.60), Shriram Transport Finance Company (1.28), Bajaj Finance (1.20), Shri Ram Fibres (1.10), and Tata Chemicals (1.07).
Among most active underlying, State Bank of India witnessed a contraction of 0.47 million units of Open Interest in the February month futures contract, followed by Muthoot Finance witnessing a contraction of 1.01 million units of Open Interest in the February month contract, Bharti Airtel witnessed a contraction of 1.52 million units of Open Interest in the February month contract, Reliance Industries witnessed a contraction of 0.31 million units of Open Interest in the February month contract and Indusind Bank witnessed an addition of 0.10 million units of Open Interest in the February month future contract (Provisional).
