The local benchmark, Nifty garnered gains of 170 points and snapped its 7-day losing streak. Market made a gap- up opening as traders took encouragement with Union Finance Minister Nirmala Sitharaman’s statement that the direct tax dispute resolution scheme announced in Budget will be of great help to people as they will be able to save time and money spent in fighting cases. Afterwards, local equity market turned volatile to touch its intraday low point, as Organization for Economic Cooperation and Development (OECD) lowered India’s GDP growth forecast to 5.1%, from its earlier projection of 6.2%, for FY21 on concerns over the impact of deadly coronavirus on the domestic as well as the global economy. However, in late afternoon session, market witnessed a spike up to climb higher as the government introduced a bill in Lok Sabha which seeks to protect the interest of small depositors by bringing cooperative banks under the RBI regulations. The proposed law seeks to enforce banking regulation guidelines of the RBI in cooperative banks while administrative issues will still be guided by the Registrar of Cooperative. Finally Nifty ended wonderful day of trade near intraday high point, as Finance Ministry states that women account for over 81 per cent of the total beneficiaries under the 'Stand Up India' scheme with loans worth Rs 16,712 crore sanctioned for them in nearly 4 years time.
All the NSE sectoral indices ended in green. The top gainers from the F&O segment were The Vedanta, Biocon and NCC. On the other hand, the top losers were Berger Paints, CESC and Shriram Transport Finance Company. In the index option segment, maximum OI continues to be seen in the 11700 -12,200 calls and 10,800 - 11,200 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 2.61% and reached 24.54. The 50 share Nifty up by 170.55 points or 1.53% to settle at 11,303.30.
Nifty March 2020 futures closed at 11321.00 (LTP) on Tuesday, at a premium of 17.70 points over spot closing of 11303.30, while Nifty April 2020 futures ended at 11359.00 (LTP), at a premium of 55.70 points over spot closing. Nifty March futures saw an addition of 2.24 million (mn) units, taking the total outstanding open interest (OI) to 15.98 (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 premium of 0.95 points at 291.45 (LTP) compared with spot closing of 290.50. The numbers of contracts traded were 50,739 (Provisional).
Indiabulls Housing Finance March 2020 futures traded at a premium of 0.50 points at 295.50 (LTP) compared with spot closing of 295.00. The numbers of contracts traded were 33,835 (Provisional).
Reliance Industries March 2020 futures traded at a premium of 1.65 points at 1348.00 (LTP) compared with spot closing of 1346.35. The numbers of contracts traded were 28,927 (Provisional).
ICICI Bank March 2020 futures traded at a premium of 0.60 points at 517.50 (LTP) compared with spot closing of 516.90. The numbers of contracts traded were 25,629 (Provisional).
HDFC Bank March 2020 futures traded at a premium of 2.90 points at 1185.40 (LTP) compared with spot closing of 1182.50. The numbers of contracts traded were 24,483 (Provisional).
Among, Nifty calls, 11300 SP from the March month expiry was the most active call with a addition of 0.50 million open interests. Among Nifty puts, 11000 SP from the March 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 (2.51 mn) and that for Puts was at 11000 SP (2.53 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,379.52 -- Pivot Point 11,266.03 -- Support -- 11,189.82
The Nifty Put Call Ratio (PCR) finally stood at (1.26) for March month contract. The top five scrips with highest PCR on Cummins India (2.30), Justdial (1.72), Oil India (1.53), Piramal Enterprises (1.32) and Siemens (1.32).
Among most active underlying, State Bank Of India witnessed an addition of 47,64,000 million units of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition of 15,38,500 million units of Open Interest in the March month contract, ICICI Bank witnessed an addition of 46,11,750 million units of Open Interest in the March month contract, Bajaj Finance witnessed an addition of 2,01,750 million units of Open Interest in the March month contract and Axis Bank witnessed an addition of 9,24,000 million units of Open Interest in the March month future contract.
