Bulls made spectacular comeback after Finance Minister Nirmala Sitharaman presented 2021 budget speech and finished the day’s trade with gain of over four percent. Index started the session with marginal gains, as foreign portfolio investors (FPI) have remained net buyers to the tune of Rs 14,649 crore in Indian markets in January, amid availability of global liquidity and emerging markets being a preferred destination for foreign funds. Traders took support with the Finance Ministry’s statement that GST collections for January touched an all-time high of about Rs 1.20 lakh crore. Market maintained its gains in green zone, as Finance Minister Nirmala Sitharaman said that two more COVID-19 vaccines are set to be launched in the country. In afternoon session, index took an upward rally after India's manufacturing sector activity strengthened in January as companies scaled up production at the quickest pace in three months in response to faster expansions in total sales and new export orders. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index rose from 56.4 in December to 57.7 in January, to signal the strongest improvement in the health of the sector in three months. Finally, Nifty ended the wonderful day of trade above 14250 mark.
Most of the sectoral indices ended in green except Pharma. The top gainers from the F&O segment were ICICI Bank, Indusind Bank and Bajaj Fiserv. On the other hand, the top losers were UPL, Dr Reddy and Torrent Pharma. 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 decreased by 7.97% and reached 23.32. The 50 share Nifty up by 646.60 points or 4.74% to settle at 14,281.20.
Nifty February 2021 futures closed at 14394.30 (LTP) on Monday, at a premium of 113.10 points over spot closing of 14281.20, while Nifty March 2021 futures ended at 14432.00 (LTP), at a premium of 150.80 points over spot closing. Nifty February futures saw an addition of 20,849 units, taking the total open interest (Contracts) to 1,43,314 units. The near month derivatives contract will expire on February 25, 2021 (Provisional).
From the most active contracts, ICICI Bank February 2021 futures traded at a premium of 3.75 points at 612.50 (LTP) compared with spot closing of 608.75. The numbers of contracts traded were 66,604 (Provisional).
SBIN February 2021 futures traded at a premium of 2.30 points at 315.30 (LTP) compared with spot closing of 313.00. The numbers of contracts traded were 52,267 (Provisional).
Reliance Industries February 2021 futures traded at a premium of 8.00 points at 1906.15 (LTP) compared with spot closing of 1898.15. The numbers of contracts traded were 52,181 (Provisional).
Indusind Bank February 2021 futures traded at a premium of 7.85 points at 982.05 (LTP) compared with spot closing of 974.20. The numbers of contracts traded were 39,372 (Provisional).
Tata Motors February 2021 futures traded at a premium of 1.60 points at 281.90 (LTP) compared with spot closing of 280.30. The numbers of contracts traded were 32,210 (Provisional).
Among, Nifty calls, 14500 SP from the February month expiry was the most active call with an addition of 2,110 units open interests. Among Nifty puts, 13500 SP from the February month expiry was the most active put with an addition of 4,558 units open interests. The maximum OI outstanding for Calls was at 14500 SP (19,696 units) and that for Puts was at 13000 SP (30,662 units). The respective Support and Resistance levels of Nifty are: Resistance 14,524.45 -- Pivot Point 14,093.10 -- Support -- 13,849.85.
The Nifty Put Call Ratio (PCR) finally stood at (1.41) for February month contract. The top five scrips with highest PCR on Vedanta (1.26), Shriram Transport Finance Company (1.22), ICICI Bank (1.15), Titan company (1.07) and Balkrishna Industries (1.07).
Among most active underlying, ICICI Bank witnessed an addition of 10,278 units of Open Interest in the February month futures contract followed by Tata Motors witnessed an addition of 1,058 units of Open Interest in the February month futures contract, SBIN witnessed an addition of 4,329 units of Open Interest in the February month futures contract, Indusind Bank witnessed an addition of 8,002 units of Open Interest in the February month futures contract and Bajaj Finance witnessed an addition of 870 units of Open Interest in the February month futures contract (Provisional).
