Nifty exhibited a smart pull back in Friday’s trade ending with a gain of over three percent. In early morning, market hit a lower circuit of 10 per cent because of this trading was halted for 45 minutes. After trading resumed, index staged smart recovery and entered into green terrain on positive macro-economic data on the domestic front. The government data showed that retail inflation dropped for the first time after six months in February, easing to 6.58% as prices of vegetables and other kitchen items cooled. Also, India's industrial output grew 2% in January against a contraction of 0.3% in December.
Further, market started trading with marginal gains in early noon trade, as traders took some support after Reserve Bank of India (RBI) has said the country's current account deficit (CAD) narrowed sharply to $1.4 billion, or 0.2 per cent of GDP, for the December 2019 quarter. The deficit had stood at 2.7 per cent in the corresponding quarter a year ago and 0.9 per cent in the previous quarter. Local market extended its upside and never looked back till the end of the session, as private report stated that India's central bank is likely to announce liquidity-boosting measures to help stabilise financial markets which have fallen sharply due to the coronavirus outbreak.
Most of the NSE sectoral indices ended in green. The top gainers from the F&O segment were Vodafone Idea, Steel Authority of India and Bank of Baroda. On the other hand, the top losers were Adani Enterprises, UPL and Zee Entertainment Enterprises. In the index option segment, maximum OI continues to be seen in the 11700 -12,200 calls and 8,700 - 9,400 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 25.05% and reached 51.47. The 50 share Nifty up by 365.05 points or 3.81% to settle at 9,955.20.
Nifty March 2020 futures closed at 9983.95 (LTP) on Friday, at a premium of 28.75 points over spot closing of 9955.20, while Nifty April 2020 futures ended at 10030.20 (LTP), at a premium of 75.00 points over spot closing. Nifty March futures saw an addition of 1.73 million (mn) units, taking the total outstanding open interest (OI) to 17.95 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 1.25 points at 243.00 (LTP) compared with spot closing of 244.25. The numbers of contracts traded were 82,049 (Provisional).
Reliance Industries March 2020 futures traded at a discount of 1.95 points at 1115.00 (LTP) compared with spot closing of 1116.95. The numbers of contracts traded were 78,644 (Provisional).
HDFC Bank March 2020 futures traded at a discount of 4.85 points at 1069.15 (LTP) compared with spot closing of 1074.00. The numbers of contracts traded were 65,700 (Provisional).
ICICI Bank March 2020 futures traded at a discount of 2.30 points at 447.65 (LTP) compared with spot closing of 449.95. The numbers of contracts traded were 63,708 (Provisional).
Indusind Bank March 2020 futures traded at a premium of 2.75 points at 810.05 (LTP) compared with spot closing of 807.30. The numbers of contracts traded were 51,112 (Provisional).
Among, Nifty calls, 11000 SP from the March month expiry was the most active call with a contraction of 0.24 million open interests. Among Nifty puts, 9000 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 (2.32 mn) and that for Puts was at 9000 SP (2.85 mn). The respective Support and Resistance levels of Nifty are: Resistance 10,558.02 -- Pivot Point 9,556.58 -- Support -- 8,953.77.
The Nifty Put Call Ratio (PCR) finally stood at 1.12 for March month contract. The top five scrips with highest PCR on Cummins India (1.32), Mahindra & Mahindra Fin. Services (1.12), Interglobe Aviation (1.08), Just Dial (1.07) and Siemens (1.04).
Among most active underlying, State Bank of India witnessed an addition of 7.32 million units of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition of 1.92 million units of Open Interest in the March month contract, ICICI Bank witnessed an addition of 5.41 million units of Open Interest in the March month contract, HDFC Bank witnessed an addition of 0.87 million units of Open Interest in the March month contract and Bharti Airtel witnessed an addition of 4.20 million units of Open Interest in the March month future contract (Provisional).
