The fifty stock index -- Nifty -- witnessed bloodbath on Monday losing its crucial 11,850 level. It was a negative start to the market, as the spread of the coronavirus outside China darkened the outlook for world growth. The local index extended its downfall, as traders were concerned after think tank National Council of Applied Economic Research (NCAER) pegged the India’s economic growth for the current fiscal at 4.9%, a tad down from 5% estimated by the National Statistical Office (NSO).
Market continued its free fall in late afternoon session, as Former RBI governor C Rangarajan said the Reserve Bank alone cannot contain inflation as supply-side shocks are needed to be managed by the government. The street paid no heed towards IMF's October World Economic Outlook report showing that India became world's fifth largest economy in 2019 in terms of nominal GDP, leapfrogging France and the UK. Finally, Nifty ended the sluggish day of trade with a cut of above two percent.
All of the NSE sectoral indices ended in red. The top gainers from the F&O segment were GMR Infrastructure, Max Financial Services and Muthoot Finance. On the other hand, the top losers were Aurobindo Pharma, Vodafone Idea and Jindal Steel & Power. In the index option segment, maximum OI continues to be seen in the 12000 - 12,700 calls and 11,500 - 12,000 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 24.07% and reached 16.99. The 50 share Nifty down by 251.45 points or 2.08% to settle at 11,829.40.
Nifty February 2020 futures closed at 11832.80 (LTP) on Monday, at a premium of 3.40 points over spot closing of 11829.40, while Nifty March 2020 futures ended at 11842.70 (LTP), at a premium of 13.30 points over spot closing. Nifty February futures saw an addition of 1.91 million (mn) units, taking the total outstanding open interest (OI) to 13.41 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).
From the most active contracts, Housing Development Finance Corporation February 2020 futures traded at a discount of 0.60 points at 2303.25 (LTP) compared with spot closing of 2303.85. The numbers of contracts traded were 49,251 (Provisional).
State Bank of India February 2020 futures traded at a discount of 0.20 points at 322.60 (LTP) compared with spot closing of 322.80. The numbers of contracts traded were 40,397 (Provisional).
Indiabulls Housing Finance February 2020 futures traded at a premium of 0.30 points at 332.00 (LTP) compared with spot closing of 331.70. The numbers of contracts traded were 34,233 (Provisional).
Aurobindo Pharma February 2020 futures traded at a premium of 0.55 points at 507.20 (LTP) compared with spot closing of 506.65. The numbers of contracts traded were 30,731 (Provisional).
ICICI Bank February 2020 futures traded flat at 530.55 (LTP) compared with spot closing of 530.55. The numbers of contracts traded were 30,531 (Provisional).
Among, Nifty calls, 12000 SP from the February month expiry was the most active call with an addition of 3.48 million open interests. Among Nifty puts, 11900 SP from the February month expiry was the most active put with an addition of 0.46 million open interests. The maximum OI outstanding for Calls was at 12000 SP (4.89 mn) and that for Puts was at 11800 SP (3.10 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,956.83 --- Pivot Point 11,885.12 --- Support --- 11,757.68
The Nifty Put Call Ratio (PCR) finally stood at 0.77 for February month contract. The top five scrips with highest PCR on Shriram Transport Finance Company (1.27), Power Finance Corporation (1.19), Tata Chemicals (1.17), Biocon (1.03) and Bajaj Finance (0.99).
Among most active underlying State Bank Of India witnessed an addition of 17.01 million units of Open Interest in the February month futures contract followed by Reliance Industries witnessing an addition of 0.79 million units of Open Interest in the February month contract Housing Development Finance Corporation witnessed an addition of 5.89 million units of Open Interest in the February month contract Aurobindo Pharma witnessed an addition of 0.06 million units of Open Interest in the February month contract and Bajaj Finance witnessed an addition of 0.44 million units of Open Interest in the February month future contract (Provisional).
