Erasing most of its gains, NSE gauge -- Nifty50 ended the day’s trade in positive territory with marginal gains on Thursday. Market opened on a positive note, as traders took some support with Reserve Bank of India (RBI) governor’s statement that he’s ready to act to shield the economy from the coronavirus and reiterated there’s room to cut interest rates if needed. He added that for India, options include a rate cut and supporting the market through liquidity measures. Further, market changed its gear and started climbing higher with Finance Minister Nirmala Sitharaman’s statement that the government is working intensively to ensure meaningful intervention, if needed, to deal with the impact of unfolding coronavirus crisis on the country. However, in the late trade, market lost its gaining momentum, by trimming its initial gains, as sentiments got hit after United Nations Conference on Trade and Development (UNCTAD) in its latest report said that the trade impact of the coronavirus epidemic for India is estimated to be about 348 million dollars and the country figures among the top 15 economies most affected as slowdown of manufacturing in China disrupts world trade. But, Nifty managed to end the session above neutral line.
All the NSE sectoral indices ended in green except Media, Metal and Reality. The top gainers from the F&O segment were The Yes Bank, Bandhan Bank and Cadila Healthcare. On the other hand, the top losers were Zee Entertainment Enterprises, Oil India and MindTree. 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 3.58% and reached 23.35. The 50 share Nifty up by 18.00 points or 0.16% to settle at 11,269.00.
Nifty March 2020 futures closed at 11245.00 (LTP) on Thursday, at a discount of 24.00 points over spot closing of 11269.00 , while Nifty April 2020 futures ended at 11292.00 (LTP), at a premium of 23.00 points over spot closing. Nifty March futures saw an addition of 1.09 million (mn) units, taking the total outstanding open interest (OI) to 15.94 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 1.35 points at 288.90 (LTP) compared with spot closing of 287.55. The numbers of contracts traded were 1,03,663 (Provisional).
Reliance Industries March 2020 futures traded at a premium of 5.10 points at 1315.00 (LTP) compared with spot closing of 1309.90. The numbers of contracts traded were 34,774 (Provisional).
Indiabulls Housing Finance March 2020 futures traded at a premium of 0.60 points at 285.90 (LTP) compared with spot closing of 285.30. The numbers of contracts traded were 28,306 (Provisional).
ICICI Bank March 2020 futures traded at a premium of 0.40 points at 504.40 (LTP) compared with spot closing of 504.00. The numbers of contracts traded were 25,855 (Provisional).
Yes Bank March 2020 futures traded at a discount of 4.10 points at 33.10 (LTP) compared with spot closing of 37.20. The numbers of contracts traded were 21,959 (Provisional).
Among, Nifty calls, 11500 SP from the March month expiry was the most active call with an addition of 0.052 million open interests. Among Nifty puts, 11300 SP from the March month expiry was the most active put with an addition of 0.15 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.68 mn) and that for Puts was at 11000 SP (3.22 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,357.47 --- Pivot Point 11,301.03 --- Support --- 11,212.57
The Nifty Put Call Ratio (PCR) finally stood at (1.31) for March month contract. The top five scrips with highest PCR on Cummins India (1.75), Oil India (1.58), Just Dial (1.43), Interglobe Aviation (1.23) and Piramal Enterprises (1.17).
Among most active underlying, State Bank Of India witnessed an addition of 9.06 million units of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition of 3.23 million units of Open Interest in the March month contract, Icici Bank witnessed an addition of 4.01 million units of Open Interest in the March month contract, Bajaj Finance witnessed an addition of 0.07 million units of Open Interest in the March month contract and Axis Bank witnessed an addition of 1.33 million units of Open Interest in the March month future contract (Provisional).
