Nifty clobbered out of shape on Friday, tracking weak global cues amid rising coronavirus fears. Earlier, market made a gap down opening, as sentiments got undermined with S&P Global Ratings’ report that a fast spreading coronavirus outbreak could knock $211 billion off the combined economies of the Asia-Pacific, with Japan, Hong Kong, Singapore and Australia among the most exposed. However, S&P did not cut growth forecasts for emerging markets of Indonesia, Malaysia, the Philippines and India, citing the fact that reported infections in those countries were still low. It noted the outlook could quickly deteriorate if the low level of cases was due to minimal testing and if those countries were swept up in financial contagion. Market continued to trade sideways for rest of the session, as domestic rating agency CRISIL said that the troubled non-bank lenders' segment is defying caution and growing the riskier unsecured loans portfolio at a pace of 25 per cent in the current fiscal. It also said that a rising propensity for personal loans and attractive risk-adjusted returns are the possible reasons driving the non-banking finance companies (NBFC) to grow on such loans. Sentiment on the street weakened furthur, as the Reserve Bank of India superseded the board of Yes Bank and imposed a 30-day moratorium on it in the absence of a credible revival plan amid a serious deterioration in its financial health. Finally, Nifty ended worst day of trade with the cut of over two percent.
All the NSE sectoral indices ended in red. The top gainers from the F&O segment were The Bajaj Auto, Pidilite Industries and MindTree. On the other hand, the top losers were Yes Bank, Max Financial Services and RBL Bank. 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 increased by 11.70% and reached 25.96. The 50 share Nifty down by 279.55 points or 2.48% to settle at 10,989.45.
Nifty February 2020 futures closed at 10927.50 (LTP) on Friday, at a discount of 61.95 points over spot closing of 10989.45, while Nifty March 2020 futures ended at 10980.00 (LTP), at a discount of 9.45 points over spot closing. Nifty February futures saw an addition of 3.64 million (mn) units, taking the total outstanding open interest (OI) to 18.78 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).
From the most active contracts, State Bank of India February 2020 futures traded at a discount of 0.10 points at 269.70 (LTP) compared with spot closing of 269.80. The numbers of contracts traded were 56,239 (Provisional).
Indusind Bank February 2020 futures traded at a premium of 0.95 points at 1007.55 (LTP) compared with spot closing of 1006.60. The numbers of contracts traded were 48,073 (Provisional).
ICICI Bank February 2020 futures traded at a premium of 0.95 points at 486.70 (LTP) compared with spot closing of 485.75. The numbers of contracts traded were 34,157 (Provisional).
Reliance Industries February 2020 futures traded at a discount of 3.35 points at 1266.50 (LTP) compared with spot closing of 1269.85. The numbers of contracts traded were 31,557 (Provisional).
HDFC Bank February 2020 futures traded at a discount of 0.85 points at 1133.15 (LTP) compared with spot closing of 1134.00. The numbers of contracts traded were 31,173 (Provisional).
Among, Nifty calls, 11500 SP from the March month expiry was the most active call with an addition of 0.25 million open interests. Among Nifty puts, 10500 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 (3.05 mn) and that for Puts was at 11000 SP (3.11 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,073.90 -- Pivot Point 10,950.65 -- Support -- 10,866.20.
The Nifty Put Call Ratio (PCR) finally stood at (1.21) for March month contract. The top five scrips with highest PCR on Cummins India (1.62), Oil India (1.54), Mahindra & Mahindra Fin. Services (1.33), Just Dial (1.26) and Siemens (1.18).
Among most active underlying, State Bank Of India witnessed an addition of 7.05 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 2.45 million units of Open Interest in the February month contract, ICICI Bank witnessed an addition of 9.44 million units of Open Interest in the February month contract, Bajaj Finance witnessed an addition of 0.32 million units of Open Interest in the February month contract and HDFC Bank witnessed an addition of 1.73 million units of Open Interest in the February month future contract (Provisional).
