Nifty gave powerful performance by surging over a percent on Wednesday, amid positive global cues. It was a strong start of the index, as traders took encouragement after the Finance Minister Nirmala Sitharaman said that the government would announce measures to tackle the financial fallout from the coronavirus outbreak amid a fall in new cases in China. But, market gave-up some of its early morning gains, as Moody's lowered growth forecast for the Asia-Pacific (Apac) region to 5.2% for 2020 citing the lingering impact of the coronavirus outbreak in China, the impact of which will be more pronounced on China and India.
However, index climbed more higher in the second half of the session, as traders took some support with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that there is no reason to doubt that the government will be able to cut fiscal deficit to 3.5% of the GDP in the fiscal beginning April 1. Finally, Nifty ended the wonderful day of trade near intraday high point with huge gains of 133.40 points, as sentiments on the street remained upbeat with a private report stating that after a substantial drop in January, consumer sentiment saw a recovery in February across the four indices of jobs, economy, personal investment, and personal finances. The consumer confidence of urban Indian sees which dropped 7.3 percentage points in January recovered by 2.5 percentage points in February.
All of the NSE sectoral indices ended in green. The top gainers from the F&O segment were Vodafone Idea, Aurobindo Pharma and Bharti Infratel. On the other hand, the top losers were Tata Motors, Motherson Sumi Systems and JSW Steel. 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 3.36% and reached 14.02. The 50 share Nifty up by 133.40 points or 1.11% to settle at 12,125.90.
Nifty February 2020 futures closed at 12148.00 (LTP) on Wednesday, at a premium of 22.10 points over spot closing of 12125.90, while Nifty March 2020 futures ended at 12154.95 (LTP), at a premium of 29.05 points over spot closing. Nifty February futures saw an addition of 0.17 million (mn) units, taking the total outstanding open interest (OI) to 12.39 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).
From the most active contracts, Aurobindo Pharma February 2020 futures traded at a premium of 0.65 points at 605.05 (LTP) compared with spot closing of 604.40. The numbers of contracts traded were 42,245 (Provisional).
Indusind Bank February 2020 futures traded at a premium of 2.75 points at 1141.75 (LTP) compared with spot closing of 1139.00. The numbers of contracts traded were 38,483 (Provisional).
State Bank of India February 2020 futures traded at a premium of 0.90 points at 321.10 (LTP) compared with spot closing of 320.20. The numbers of contracts traded were 32,857 (Provisional).
Reliance Industries February 2020 futures traded at a premium of 2.30 points at 1506.80 (LTP) compared with spot closing of 1504.50. The numbers of contracts traded were 25,456 (Provisional).
Tata Motors February 2020 futures traded at a premium of 0.20 points at 158.30 (LTP) compared with spot closing of 158.10. The numbers of contracts traded were 23,068 (Provisional).
Among, Nifty calls, 12200 SP from the February month expiry was the most active call with a contraction of 0.74 million open interests. Among Nifty puts, 12000 SP from the February month expiry was the most active put with a addition of 0.84 million open interests. The maximum OI outstanding for Calls was at 12300 SP (2.41 mn) and that for Puts was at 12000 SP (4.20 mn). The respective Support and Resistance levels of Nifty are: Resistance 12,159.70 --- Pivot Point 12,100.90 --- Support --- 12,067.10.
The Nifty Put Call Ratio (PCR) finally stood at 1.19 for February month contract. The top five scrips with highest PCR on Tata Consultancy Services (1.43), Bajaj Finance (1.28), Shriram Transport Finance Company (1.26), Aurobindo Pharma (1.23) and Oil India (1.19).
Among most active underlying, State Bank of India witnessed an addition of 0.82 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing a contraction of 1.61 million units of Open Interest in the February month contract, Aurobindo Pharma witnessed an addition of 0.14 million units of Open Interest in the February month contract, Bajaj Finance witnessed an addition of 0.08 million units of Open Interest in the February month contract and Tata Motors witnessed a contraction of 0.14 million units of Open Interest in the February month future contract (Provisional).
