Indian benchmark -- Nifty -- finished the last trading day of week near day’s low point with cut of above a percent. Market made a positive start, as SBI Research’s report stated that with record GST collections expected in January at Rs 1.21-1.23 lakh crore, the shortfall in state GST can be narrowed to a minimal Rs 11,000 crore. Ongoing efforts to plug the leakages in GST collection has been bearing fruit since September. Market failed to protect its gains and slipped into negative territory, as Economic Survey 2020-21 said that India’s GDP is estimated to contract by 7.7 per cent during the current fiscal. According to the survey, the real growth rate for FY22 was assumed at 11.5 per cent based on IMF estimates. Traders took note that International Monetary Fund (IMF) has said that India must ensure that the COVID-19 pandemic is well contained and the distribution and rollout of vaccines are well managed in a timely manner. It also insisted that securing a robust and sustained economic recovery will require a bold and multifaceted policy response, including investment in health infrastructure to further contain the pandemic and to ensure the availability and effective distribution of vaccines and treatments. In last leg of trade, selling got intensified as MF's Chief Economist Gita Gopinath states that it would be damaging for India to start tightening policy support in the midst of the COVID-19 pandemic. She said there is scope for the Indian government to provide more direct support to people.
Most of the sectoral indices ended in red except Bank, Private Bank and Realty. The top gainers from the F&O segment were Shriram Transport Finance Company, Indusind Bank and TVS Motor Company. On the other hand, the top losers were Havells, Vodafone Idea and Mahindra & Mahindra Fin. Services. In the index option segment, maximum OI continues to be seen in the 14100 - 15,500 calls and 12,900 - 13,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 4.33% and reached 25.34. The 50 share Nifty down by 182.95 points or 1.32% to settle at 13,634.60.
Nifty February 2021 futures closed at 13717.25 (LTP) on Friday, at a premium of 82.65 points over spot closing of 13634.60, while Nifty March 2021 futures ended at 13750.80 (LTP), at a premium of 116.20 points over spot closing. Nifty February futures saw an addition of 2,652 units, taking the total open interest (Contracts) to 1,30,883 units. The near month derivatives contract will expire on February 25, 2021 (Provisional).
From the most active contracts, Reliance Industries February 2021 futures traded at a premium of 10.50 points at 1855.45 (LTP) compared with spot closing of 1844.95. The numbers of contracts traded were 56,569 (Provisional).
Sun Pharmaceutical Industries February 2021 futures traded at a discount of 4.90 points at 583.50 (LTP) compared with spot closing of 588.40. The numbers of contracts traded were 31,806 (Provisional).
ICICI Bank February 2021 futures traded at a premium of 2.30 points at 541.25 (LTP) compared with spot closing of 538.95. The numbers of contracts traded were 31,639 (Provisional).
Dr Reddy February 2021 futures traded at a premium of 7.65 points at 4621.20 (LTP) compared with spot closing of 4613.55. The numbers of contracts traded were 29,030 (Provisional).
HDFC Bank February 2021 futures traded at a premium of 2.50 points at 1393.50 (LTP) compared with spot closing of 1391.00. The numbers of contracts traded were 28,765 (Provisional).
Among, Nifty calls, 14000 SP from the February month expiry was the most active call with an addition of 3,917 units open interests. Among Nifty puts, 13500 SP from the February month expiry was the most active put with an addition of 1,658 units open interests. The maximum OI outstanding for Calls was at 14500 SP (18,304 units) and that for Puts was at 13000 SP (28,565 units). The respective Support and Resistance levels of Nifty are: Resistance 13,868.72 -- Pivot Point 13,732.73 -- Support -- 13,498.62.
The Nifty Put Call Ratio (PCR) finally stood at (1.43) for February month contract. The top five scrips with highest PCR on Shree Cement (5.00), Aarti Industries (1.55), Vedanta (1.51), Torrent Pharmaceuticals (1.51) and Shriram Transport Finance Company (1.25).
Among most active underlying, Tata Motors witnessed an addition of 1,160 units of Open Interest in the February month futures contract followed by Tata Steel witnessed an addition of 1,644 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 4,771 units of Open Interest in the February month futures contract, Sun Pharmaceutical Industries witnessed an addition of 2,919 units of Open Interest in the February month futures contract and ICICI Bank witnessed an addition of 2,412 units of Open Interest in the February month futures contract (Provisional).
