S&P CNX Nifty ended lower on Tuesday amid high volatility. Market made positive start after Reserve Bank of India (RBI) in its latest data has showed that bank credit grew 5.93 percent to Rs 107.05 lakh crore, while deposits rose 11.06 percent to Rs 147.98 lakh crore in the fortnight ended January 29, 2021. In the fortnight ended January 31, 2020, bank credit stood at Rs 101.05 lakh crore and deposits at Rs 133.24 lakh crore. Further, market continued its firm trade, as traders took support with the commerce ministry’s data showing that growing for the second consecutive month, the country's exports rose 6.16 per cent year-on-year to $27.45 billion in January 2021 following healthy growth in pharma and engineering sectors. Trade deficit during the month narrowed to $14.54 billion from $15.3 billion in January 2020. It was $15.44 billion in December 2020. Imports in January 2021 rose 2 per cent to $42 billion. However, in late afternoon session, market wiped out all its gains to trade negative even after S&P Global Ratings said that India is on track for an economic recovery in the fiscal year ending March 2022. It said in a report titled 'Cross-Sector Outlook: India's Escape From Covid' that consistently good agriculture performance, a flattening of the Covid-19 infection curve and a pickup in government spending are all supporting the economy.
Most of the sectoral indices ended in red except Metal, Pharma and Realty. The top gainers from the F&O segment were Jindal Steel, Power Grid and ONGC. On the other hand, the top losers were Godrej Consumer Products, Amara Raja Batteries and Info Edge (India). 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 increased by 1.42% and reached 21.78. The 50 share Nifty down by 1.25 points or 0.008% to settle at 15,313.45.
Nifty February 2021 futures closed at 15332.00 (LTP) on Tuesday, at a premium of 18.55 points over spot closing of 15313.45, while Nifty March 2021 futures ended at 15379.90 (LTP), at a premium of 66.45 points over spot closing. Nifty February futures saw an addition of 2,384 units, taking the total outstanding open interest (Contracts) to 1,47,350 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 8.40 points at 2066.90 (LTP) compared with spot closing of 2058.50. The numbers of contracts traded were 47,686 (Provisional).
SBIN February 2021 futures traded at a premium of 1.85 points at 404.75 (LTP) compared with spot closing of 402.90. The numbers of contracts traded were 36,147 (Provisional).
Tata Steel February 2021 futures traded at a premium of 3.60 points at 701.25 (LTP) compared with spot closing of 697.65. The numbers of contracts traded were 32,619 (Provisional).
ICICI Bank February 2021 futures traded at a premium of 2.85 points at 661.00 (LTP) compared with spot closing of 658.15. The numbers of contracts traded were 24,441 (Provisional).
Kotak Mahindra Bank February 2021 futures traded at a discount of 0.30 points at 2023.60 (LTP) compared with spot closing of 2023.90. The numbers of contracts traded were 17,850 (Provisional).
Among, Nifty calls, 15500 SP from the February month expiry was the most active call with an addition of 1,812 units open interests. Among Nifty puts, 15000 SP from the February month expiry was the most active put with an addition of 4,285 units open interests. The maximum OI outstanding for Calls was at 16000 SP (29,512 units) and that for Puts was at 14000 SP (40,852 units). The respective Support and Resistance levels of Nifty are: Resistance 15,416.07 -- Pivot Point 15,329.13 -- Support -- 15,226.52.
The Nifty Put Call Ratio (PCR) finally stood at (1.40) for February month contract. The top five scrips with highest PCR on Axis Bank (1.32), ICICI Bank (1.16), SBIN (1.10), Vedanta (1.09) and Bajaj Finance (1.05).
Among most active underlying, SBIN witnessed an addition of 868 units of Open Interest in the February month futures contract followed by Tata Steel witnessed an addition of 979 units of Open Interest in the February month futures contract, Tata Motors witnessed an addition of 529 units of Open Interest in the February month futures contract, Reliance Industries witnessed an addition of 1,705 units of Open Interest in the February month futures contract and ICICI Bank witnessed an addition of 1,064 units of Open Interest in the February month futures contract (Provisional).
