Nifty witnessed worst point-wise fall on Friday tracking massive sell-off in the global markets on growing fears that the coronavirus outbreak could turn into a pandemic and derail growth. The barometer made a pessimistic start with heavy losses, as Industry body PHDCCI said that the coronavirus outbreak may negatively impact global growth by 30 basis points or $250 billion. It said disruptions in the global supply chains will not only hit China's exports but also the exports of the importing countries as they import a large chunk of raw materials and intermediate goods from China while exporting to other respective destinations. Market mood continued to remain downbeat with the Association of Indian Forging Industry’s (AIFI) statement that disruption in supplies due to the coronavirus outbreak in China has hit domestic forging industry along with automobile and auto component manufacturing sectors.
Index extended its downside ahead of the release the Gross Domestic Product (GDP) figures for the October-December period. In last hour of trade, market witnessed some more pressure to end the day’s trade below a crucial psychological level of 11,250, as traders failed to draw any sense of relief as rating agency ICRA expects the growth of the Indian GDP and the gross value added (GVA) at basic prices in year-on-year (Y-o-Y) terms to rise mildly to 4.7% and 4.5%, respectively, in Q3 FY2020, from 4.5% and 4.3%, respectively, in Q2 FY2020.
All the NSE sectoral indices ended in red. The top gainers from the F&O segment were The Info Edge (India), United Spirits and Page Industries. On the other hand, the top losers were Vedanta GMR Infrastructure and Indiabulls Housing Finance. 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 30.79% and reached 23.23. The 50 share Nifty down by 431.55 points or 3.71% to settle at 11,201.75.
Nifty March 2020 futures closed at 11158.00 (LTP) on Friday, at a discount of 43.75 points over spot closing of 11201.75, while Nifty April 2020 futures ended at 11211.95 (LTP), at a premium of 10.20 points over spot closing. Nifty March futures saw an addition of 1.78 million (mn) units, taking the total outstanding open interest (OI) to 16.26 mn units. The near month derivatives contract will expire on March 26, 2020 (Provisional).
From the most active contracts, State Bank of India March 2020 futures traded at a discount of 1.55 points at 303.05 (LTP) compared with spot closing of 304.60. The numbers of contracts traded were 45,789 (Provisional).
ICICI Bank March 2020 futures traded at a discount of 0.55 points at 498.40 (LTP) compared with spot closing of 498.95. The numbers of contracts traded were 36,096 (Provisional).
Reliance Industries March 2020 futures traded at a premium of 0.70 points at 1327.70 (LTP) compared with spot closing of 1327.00. The numbers of contracts traded were 35,788 (Provisional).
HDFC Bank March 2020 futures traded at a discount of 1.85 points at 1176.95 (LTP) compared with spot closing of 1178.80. The numbers of contracts traded were 33,976 (Provisional).
Bajaj Finance March 2020 futures traded at a discount of 26.45 points at 4473.55 (LTP) compared with spot closing of 4500.00. The numbers of contracts traded were 32,196 (Provisional).
Among, Nifty calls, 11500 SP from the March month expiry was the most active call with an addition of 1.03 million open interests. Among Nifty puts, 11000 SP from the March 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 (2.31 mn) and that for Puts was at 11800 SP (2.24 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,332.68 --- Pivot Point 11,253.87 --- Support --- 11,122.93
The Nifty Put Call Ratio (PCR) finally stood at 1.24 for March month contract. The top five scrips with highest PCR on Cummins India (2.82), Oil India (2.16), Just Dial (1.74), Godrej Consumer Products (1.40) and Siemens (1.36).
Among most active underlying, State Bank Of India witnessed an addition of 5.43 million units of Open Interest in the March month futures contract followed by Bajaj Finance witnessing an addition of 0.52 million units of Open Interest in the March month contract Reliance Industries witnessed an addition of 1.32 million units of Open Interest in the March month contract ICICI Bank witnessed an addition of 5.96 million units of Open Interest in the March month contract and Axis Bank witnessed an addition of 4.87 million units of Open Interest in the March month future contract (Provisional).
