Key benchmark --Nifty--ended the volatile trading session below its crucial 11,800 levels, as the U.S. President Donald Trump’s two-day visit failed to boost sentiment. Market made a slightly positive start, as traders took some support with chairperson of the National Committee on Financial Inclusion and Literacy at Niti Aayog Bindu Dalmia’s statement that the government’s target of achieving a $5 trillion economy by 2024-25 sounds too idealistic. She added that the target has been so set to raise the bar of India’s economic performance. Further, index turned volatile and started trading tad above neutral line till afternoon deals, as some solace also came with market regulator SEBI’s statement that foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms.
However, market failed to hold its head above water and slipped into the negative terrain, as traders were turned cautious with Reserve Bank of India Governor Shaktikanta Das’ statement that slowing credit growth is one of the most critical challenges for the banking industry and there is a need to focus on prudent lending by the banks. So far this year, credit growth in the country has moderated to 7-7.5 per cent. Traders paid no heed towards Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that there is space for further rate cuts despite upside risks to the inflation outlook. Finally, Nifty ended flat trade of day with marginal losses.
Traders were seen piling up positions in FMCG, IT, Metal, PSU Bank, and Reality, while selling was witnessed in Bank, Auto, Media, Pharma and PVT Bank. The top gainers from the F&O segment MindTree, NIIT Technologies and RBL Bank. On the other hand, the top losers were InterGlobe Aviation, Piramal Enterprises and Ashok Leyland. In the index option segment, maximum OI continues to be seen in the 11800 -12,700 calls and 11,600 - 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 0.59% and reached 16.89. The 50 share Nifty down by 31.50 points or 0.27% to settle at 11,797.90.
Nifty February 2020 futures closed at 11822.35 (LTP) on Tuesday, at a premium of 24.45 points over spot closing of 11797.90, while Nifty March 2020 futures ended at 11827.10 (LTP), at a premium of 29.20 points over spot closing. Nifty February futures saw an addition of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 10.87 mn units. The near month derivatives contract will expire on February 27, 2020.
From the most active contracts, ICICI Bank February 2020 futures traded at a premium of 0.80 points at 531.70 (LTP) compared with spot closing of 530.90. The numbers of contracts traded were 39,144 (Provisional).
Reliance Industries February 2020 futures traded at a premium of 3.10 points at 1423.10 (LTP) compared with spot closing of 1420.00. The numbers of contracts traded were 37,910 (Provisional).
State Bank of India February 2020 futures traded at a premium of 0.30 points at 328.05 (LTP) compared with spot closing of 327.75. The numbers of contracts traded were 37,854 (Provisional).
Housing Development Finance Corporation February 2020 futures traded at a discount of 73.00 points at 2306.00 (LTP) compared with spot closing of 2379.00. The numbers of contracts traded were 17,628 (Provisional).
Indiabulls Housing Finance February 2020 futures traded at a discount of 9.45 points at 327.95 (LTP) compared with spot closing of 337.40. The numbers of contracts traded were 25,529 (Provisional).
Among, Nifty calls, 11900 SP from the February month expiry was the most active call with an addition of 1.31 million open interests. Among Nifty puts, 11800 from the February month expiry was the most active put with an addition of 0.36 million open interests. The maximum OI outstanding for Calls was at 12000 SP (5.27 mn) and that for Puts was at 11800 SP (3.41 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,860.67 --- Pivot Point 11,820.28 --- Support --- 11,757.52
The Nifty Put Call Ratio (PCR) finally stood at 0.71 for February month contract. The top five scrips with highest PCR on Shriram Transport Finance Company (1.28), Tata Chemicals (1.21), Tata Consultancy Services (1.19), Power Finance Corporation (1.05) and Bajaj Finance (1.04).
Among most active underlying, State Bank Of India witnessed an addition of 6.57 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 1.88 million units of Open Interest in the February month contract, ICICI Bank witnessed an addition of 19.89 million units of Open Interest in the February month contract, Maruti Suzuki India witnessed an addition of 0.22 million units of Open Interest in the February month contract and Housing Development Finance Corporation witnessed an addition of 3.94 million units of Open Interest in the February month future contract (Provisional).
