NSE gauge -- Nifty50 -- ended the Wednesday’s trade in negative territory. Market made positive start but soon entered into red zone, as India recorded 10,510 fresh Covid-19 cases of the coronavirus disease (Covid-19). The country continues to be second-most-affected globally, and ranks 17th among worst-hit nations by active cases. Further, market remained below neutral line despite finance ministry's monthly report said growth and inflation outlook for 2021-22 portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world. Traders overlooked Agriculture Minister Narendra Singh Tomar’s statement that the government has been pursuing the target of doubling farmers' income by 2022 and several interventions taken are showing a ‘positive impact’. He also said the government has adopted several developmental programmes, schemes, reforms and policies that focus on higher incomes for the farmers. Traders took note of credit rating agency, India Ratings and Research’s (Ind-Ra) latest report stating that the gross domestic product (GDP) growth is likely to bounce back to 10.4% year on year (yoy) in FY22, primarily driven by the base effect.
Traders were seen piling up positions in Auto, IT and Media stocks, while selling was witnessed in Bank, FMGC and Metal. The top gainers from the F&O segment were Motherson Sumi Systems, Indiabulls Housing Finance and Muthoot Finance. On the other hand, the top losers were Interglobe Aviation, Indus Tower and Aarti Industries. In the index option segment, maximum OI continues to be seen in the 14100 - 16200 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 decreased by 1.62% and reached 23.88. The 50 share Nifty down by 2.80 points or 0.02% to settle at 15,106.50.
Nifty February 2021 futures closed at 15158.00 (LTP) on Wednesday, at a premium of 51.50 points over spot closing of 15106.50, while Nifty March 2021 futures ended at 15196.00 (LTP), at a premium of 89.50 points over spot closing. Nifty February futures saw an addition of 3,433 units, taking the total open interest (Contracts) to 1,47,872 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 5.45 points at 1987.35 (LTP) compared with spot closing of 1981.90. The numbers of contracts traded were 43,422 (Provisional).
Tata Steel February 2021 futures traded at a premium of 3.35 points at 694.65 (LTP) compared with spot closing of 691.30. The numbers of contracts traded were 42,525 (Provisional).
SBIN February 2021 futures traded at a premium of 1.90 points at 395.10 (LTP) compared with spot closing of 393.20. The numbers of contracts traded were 24,906 (Provisional).
Bharti Airtel February 2021 futures traded at a premium of 1.40 points at 590.55 (LTP) compared with spot closing of 589.15. The numbers of contracts traded were 20,954 (Provisional).
ITC February 2021 futures traded at a discount of 1.90 points at 226.30 (LTP) compared with spot closing of 228.20. The numbers of contracts traded were 20,082 (Provisional).
Among, Nifty calls, 15200 SP from the February month expiry was the most active call with an addition of 1,870 units open interests. Among Nifty puts, 15000 SP from the February month expiry was the most active put with an addition of 728 units open interests. The maximum OI outstanding for Calls was at 16000 SP (27,062 units) and that for Puts was at 14000 SP (41,660 units). The respective Support and Resistance levels of Nifty are: Resistance 15,190.77 -- Pivot Point 15,083.98 -- Support -- 14,999.72.
The Nifty Put Call Ratio (PCR) finally stood at (1.51) for February month contract. The top five scrips with highest PCR on SBIN (1.53), ICICI Bank (1.21), Vedanta (1.13), Shriram Transport Finance Company (1.10) and Axis Bank (1.05).
Among most active underlying, Tata Steel witnessed a addition of 3,398 units of Open Interest in the February month futures contract followed by Tata Motors witnessed an addition of 297 units of Open Interest in the February month futures contract, SBIN witnessed an addition of 1,088 units of Open Interest in the February month futures contract, Bharti Airtel witnessed an addition of 1,752 units of Open Interest in the February month futures contract and Reliance Industries witnessed an addition of 1,379 units of Open Interest in the February month futures contract (Provisional).
