Bears continued to hold its control over the Key equity benchmark --Nifty-- and ended the day’s trade below its crucial 8500 level. Earlier, market made a slightly positive start, but its failed to protect gain and soon entered into negative zone as S&P Global Ratings lowered India's economic growth forecast to 5.2 percent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic. The agency had earlier projected a growth rate of 5.7 percent during the 2020 calendar. The market remained under pressure, as increasing number of coronavirus cases dampened the sentiments’. Traders paid no heed towards Fitch Solutions’ report that it expects the Reserve Bank of India to cut key interest rates by 175 basis points during the fiscal year starting April 1, up from earlier estimate of 40 bps reduction, to combat the economic shock from the coronavirus outbreak. It also forecast India's real GDP growth to pick up slightly to 5.4 percent in 2020-21, from its estimate of 4.9 percent in the current fiscal.
All sectoral indices ended in red on NSE. The top gainers from the F&O segment were Zee Entertainment Enterprises, Just Dial and Oil India. On the other hand, the top losers were Vodafone Idea, IndusInd Bank and Bharti Infratel. In the index option segment, maximum OI continues to be seen in the 11,700 -12,200 calls and 8300 - 8800 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 2.46% and reached 64.47. The 50 share Nifty down by 498.25 points or 5.56% to settle at 8,468.80.
Nifty March 2020 futures closed at 8456.90 (LTP) on Wednesday, at a discount of 11.90 points over spot closing of 8468.80, while Nifty April 2020 futures ended at 8481.25 (LTP), at a premium of 12.45 points over spot closing. Nifty March futures saw an addition of 0.73 million (mn) units, taking the total outstanding open interest (OI) to 16.60 (mn) units. The near month derivatives contract will expire on March 26, 2020 (Provisional).
From the most active contracts, Indusind Bank March 2020 futures traded at a premium of 2.50 points at 458.15 (LTP) compared with spot closing of 455.65. The numbers of contracts traded were 1,25,089 (Provisional).
HDFC Bank March 2020 futures traded at a premium of 1.00 points at 901.40 (LTP) compared with spot closing of 900.40. The numbers of contracts traded were 59,828 (Provisional).
ICICI Bank March 2020 futures traded at a discount of 0.50 points at 356.70 (LTP) compared with spot closing of 357.20. The numbers of contracts traded were 55,434 (Provisional).
State Bank of India March 2020 futures traded at a discount of 2.50 points at 213.35 (LTP) compared with spot closing of 215.85. The numbers of contracts traded were 55,058 (Provisional).
Reliance Industries March 2020 futures traded at a discount of 3.50 points at 973.00 (LTP) compared with spot closing of 976.50. The numbers of contracts traded were 45,202 (Provisional).
Among, Nifty calls, 9000 SP from the March month expiry was the most active call with a addition of 0.19 million open interests. Among Nifty puts, 8500 SP from the March month expiry was the most active put with a contraction of 0.14 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.13 mn) and that for Puts was at 8500 SP (2.03 mn). The respective Support and Resistance levels of Nifty are: Resistance 8,928.55 -- Pivot Point 8,667.80 -- Support -- 8,208.05.
The Nifty Put Call Ratio (PCR) finally stood at 1.01 for March month contract. The top five scrips with highest PCR on Page Industries (1.57), Cummins India (1.43), Yes Bank (1.09), Interglobe Aviation (1.06) and Siemens (1.05).
Among most active underlying, State Bank Of India witnessed an addition of 10.52 million units of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition of 0.36 million units of Open Interest in the March month contract, ICICI Bank witnessed an addition of 9.92 million units of Open Interest in the March month contract, Yes Bank witnessed a contraction of 21.16 million units of Open Interest in the March month contract and HDFC Bank witnessed an addition of 1.94 million units of Open Interest in the March month future contract (Provisional).
