Weak run of Nifty continued on Wednesday as well, with the benchmark witnessing a triple digit plunge, on the back of weakness in global markets due to economic growth concerns caused by the deadly coronavirus. Index remained under pressure from the beginning of trade and continued its lackluster trade throughout the session. The mood of the market remained impacted with Care Ratings report that it has projected Gross Domestic Product (GDP) growth of 4.5% for Q3-FY20, which is lower than 6.6% GDP growth recorded in the corresponding period a year ago. For the FY20, it has estimated GDP growth to be at 5% with a downward bias. In last leg of trade, index turned for the worst as selling intensified as Moody's Analytics states that a global recession is likely if coronavirus becomes a pandemic, and the odds of that are uncomfortably high and rising with infections surging in Italy and Korea.
All of the NSE sectoral indices ended in red. The top gainers from the F&O segment were Yes Bank, Vodafone Idea and RBL Bank. On the other hand, the top losers were Container Corporation of India, GAIL (India) and GMR Infrastructure. In the index option segment, maximum OI continues to be seen in the 11700 - 12,200 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 8.06% and reached 18.26. The 50 share Nifty down by 119.40 points or 1.01% to settle at 11,678.50.
Nifty February 2020 futures closed at 11698.00 (LTP) on Wednesday, at a premium of 19.50 points over spot closing of 11678.50, while Nifty March 2020 futures ended at 11696.10 (LTP), at a premium of 17.60 points over spot closing. Nifty February futures saw an addition of 1.77 million (mn) units, taking the total outstanding open interest (OI) to 10.12 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).
From the most active contracts, Reliance Industries February 2020 futures traded at a premium of 2.30 points at 1391.80 (LTP) compared with spot closing of 1389.50. The numbers of contracts traded were 39,140 (Provisional).
Housing Development Finance Corporation February 2020 futures traded at a premium of 2.80 points at 2279.30 (LTP) compared with spot closing of 2276.50. The numbers of contracts traded were 37,943 (Provisional).
State Bank of India February 2020 futures traded at a premium of 0.40 points at 328.55 (LTP) compared with spot closing of 328.15. The numbers of contracts traded were 35,140 (Provisional).
ICICI Bank February 2020 futures traded at a discount of 0.20 points at 522.30 (LTP) compared with spot closing of 522.50. The numbers of contracts traded were 29,807 (Provisional).
Indusind Bank February 2020 futures traded at a premium of 2.30 points at 1141.50 (LTP) compared with spot closing of 1139.20. The numbers of contracts traded were 26,052 (Provisional).
Among, Nifty calls, 11800 SP from the February month expiry was the most active call with an addition of 1.45 million open interests. Among Nifty puts, 11700 SP from the February month expiry was the most active put with an addition of 0.32 million open interests. The maximum OI outstanding for Calls was at 12000 SP (4.73 mn) and that for Puts was at 11700 SP (3.03 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,761.30 --- Pivot Point 11,700.45 --- Support --- 11,617.65
The Nifty Put Call Ratio (PCR) finally stood at 0.67 for February month contract. The top five scrips with highest PCR on Shriram Transport Finance Company (1.58), Tata Chemicals (1.28), Tata Consultancy Services (1.21), Tech Mahindra (1.14) and Yes Bank (1.09).
Among most active underlying, State Bank Of India witnessed an addition of 8.13 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 5.08 million units of Open Interest in the February month contract, ICICI Bank witnessed an addition of 1.16 million units of Open Interest in the February month contract, Housing Development Finance Corporation witnessed an addition of 5.04 million units of Open Interest in the February month contract and Maruti Suzuki India witnessed an addition of 0.23 million units of Open Interest in the February month future contract (Provisional).
