Indian benchmark -- Nifty -- finished the session with cut of over two percent. Earlier, market made a gap down opening, as traders were cautious with exporters’ body Federation of Indian Export Organsations (FIEO) stating export sector has started feeling the pinch of the outbreak of coronavirus as international buyers are asking to hold back shipments. However, index entered into green territory for little time as traders found some solace with Reserve Bank of India’s (RBI) statement that it would buy Rs 10,000 crore of bonds from the secondary market to keep the market liquid, even as it infused Rs 25,000 crore of liquidity through long-term repo operations (LTRO). But, again index entered into red zone to end the session below its 8300 mark, as finance ministry’s data showed that total liabilities of the government increased to Rs 93.89 lakh crore at the end of December 2019, up 3.2 percent as compared to the previous quarter.
All sectoral indices ended in red on NSE. The top gainers from the F&O segment were Vodafone Idea, ITC and Exide Industries. On the other hand, the top losers were Indiabulls Housing Finance, Ashok Leyland and Bharti Infratel. In the index option segment, maximum OI continues to be seen in the 11,700 -12,200 calls and 10800 11300 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 12.89% and reached 72.19. The 50 share Nifty down by 205.35 points or 2.42% to settle at 8,263.45.
Nifty March 2020 futures closed at 8211.05 (LTP) on Thursday, at a discount of 52.40 points over spot closing of 8263.45, while Nifty April 2020 futures ended at 8225.00 (LTP), at a discount of 38.45 points over spot closing. Nifty March futures saw an addition of 0.90 million (mn) units, taking the total outstanding open interest (OI) to 16.07 mn units. The near month derivatives contract will expire on March 26, 2020 (Provisional).
From the most active contracts, ICICI Bank March 2020 futures traded at a discount of 1.10 points at 334.30 (LTP) compared with spot closing of 335.40. The numbers of contracts traded were 62,939 (Provisional).
Indusind Bank March 2020 futures traded at a discount of 1.50 points at 436.50 (LTP) compared with spot closing of 438.00. The numbers of contracts traded were 59,518 (Provisional).
HDFC Bank March 2020 futures traded at a discount of 8.10 points at 896.50 (LTP) compared with spot closing of 904.60. The numbers of contracts traded were 59,392 (Provisional).
State Bank of India March 2020 futures traded at a discount of 0.70 points at 202.75 (LTP) compared with spot closing of 203.45. The numbers of contracts traded were 54,500 (Provisional).
Reliance Industries March 2020 futures traded at a discount of 1.45 points at 916.25 (LTP) compared with spot closing of 917.70. The numbers of contracts traded were 52,778 (Provisional).
Among, Nifty calls, 9000 SP from the March month expiry was the most active call with a addition of 0.47 million open interests. Among Nifty puts, 8000 SP from the March month expiry was the most active put with a addition of 0.42 million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.16 mn) and that for Puts was at 11000 SP (1.87 mn). The respective Support and Resistance levels of Nifty are: Resistance 8,615.08 --- Pivot Point 8,223.82 --- Support --- 7,872.18.
The Nifty Put Call Ratio (PCR) finally stood at 1.01 for March month contract. The top five scrips with highest PCR on Cummins India (1.39), Yes Bank (1.13), Interglobe Aviation (1.02), Siemens (1.01) Exide Industries (0.98).
Among most active underlying, State Bank Of India witnessed an addition of 75,75,000 million units of Open Interest in the March month futures contract, followed by ICICI Bank witnessing an addition of 41,36,000 million units of Open Interest in the March month contract, Reliance Industries witnessed an addition of 15,28,000 million units of Open Interest in the March month contract, Hdfc Bank witnessed an addition of 13,71,500 million units of Open Interest in the March month contract and Bajaj Finance witnessed an addition of 4,68,500 million units of Open Interest in the March month future contract (Provisional).
