S&P CNX -- Nifty -- extended its budget day rally for the second day in row and ended the trade above its crucial 14600 mark. Market made optimistic start, as the US-India Business Council said that the annual budget presented by Finance Minister Nirmala Sitharaman has several bold initiatives that set the tone for an accelerated post-pandemic economic recovery and new opportunities for India’s social development. In morning session, market touched its intraday high point with S&P Global Rating’s statement that India's Budget for fiscal 2022 (ending March 31, 2022) represents a comprehensive effort by the Central government to shore up the country's nascent economic recovery. But the brawny spending programme also entails higher-than-expected general government deficits -- at more than 14 per cent of GDP this fiscal year and 11.6 per cent in fiscal 2022. Local investors also cheered report that foreign institutional investors (FIIs) turned net buyers in Indian markets after a five-day hiatus. FIIs net bought shares worth Rs 1,494.23 crore while domestic institutional investors net sold shares worth Rs 90.46 crore. Index continued upward journey till the end of the session, as commerce ministry data said that the country’s exports grew 5.37 per cent year-on-year to $27.24 billion in January 2021, mainly driven by healthy growth in pharmaceuticals and engineering sectors. Finally, Nifty finished the day’s trade with gains of above two and half percent.
All the sectoral indices ended in green. The top gainers from the F&O segment were Tata Motors, Ashok Leyand and TVS Motor. On the other hand, the top losers were SAIL, Icici Prudential Life Insurance Company and HDFC Life Insurance Company. In the index option segment, maximum OI continues to be seen in the 14100 - 15,500 calls and 13,700 - 14,500 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 0.09% and reached 23.35. The 50 share Nifty up by 366.65 points or 2.57% to settle at 14,647.85.
Nifty February 2021 futures closed at 14711.90 (LTP) on Tuesday, at a premium of 64.05 points over spot closing of 14647.85, while Nifty March 2021 futures ended at 14747.65 (LTP), at a premium of 99.80 points over spot closing. Nifty February futures saw an addition of 8,273 units, taking the total open interest (Contracts) to 1,40,612 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 11.50 points at 1947.50 (LTP) compared with spot closing of 1936.00. The numbers of contracts traded were 79,188 (Provisional).
SBIN February 2021 futures traded at a premium of 1.20 points at 332.60 (LTP) compared with spot closing of 331.40. The numbers of contracts traded were 53,624 (Provisional).
Tata Motors February 2021 futures traded at a premium of 1.10 points at 328.05 (LTP) compared with spot closing of 326.95. The numbers of contracts traded were 48,032 (Provisional).
ICICI Bank February 2021 futures traded at a premium of 3.60 points at 622.05 (LTP) compared with spot closing of 618.45. The numbers of contracts traded were 40,266 (Provisional).
HDFC Bank February 2021 futures traded at a premium of 6.35 points at 1566.85 (LTP) compared with spot closing of 1560.50. The numbers of contracts traded were 37,005 (Provisional).
Among, Nifty calls, 15000 SP from the February month expiry was the most active call with an addition of 3,514 units open interests. Among Nifty puts, 14000 SP from the February month expiry was the most active put with an addition of 7,402 units open interests. The maximum OI outstanding for Calls was at 15000 SP (22,237 units) and that for Puts was at 14000 SP (40,270 units). The respective Support and Resistance levels of Nifty are: Resistance 14,763.32 -- Pivot Point 14,616.23 -- Support -- 14,500.77.
The Nifty Put Call Ratio (PCR) finally stood at (1.50) for February month contract. The top five scrips with highest PCR on Vedanta (1.41), Shriram Transport Finance Company (1.23), ICICI Bank (1.18), Aarti Industries (1.09) and HDFC Bank (1.05).
Among most active underlying, Tata Motors witnessed an addition of 393 units of Open Interest in the February month futures contract followed by SBIN witnessed an addition of 327 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 7,925 units of Open Interest in the February month futures contract, ICICI Bank witnessed an addition of 659 units of Open Interest in the February month futures contract and HDFC Bank witnessed an addition of 660 units of Open Interest in the February month futures contract (Provisional).
