After witnessing bloodbath throughout the session, Indian benchmark -- Nifty -- finished the session with a cut of over three and half a percent. Market made gap down opening, as traders were cautious ahead of the Q3 gross domestic product (GDP) data, to be released later in the day, which will shed light on whether the economy continued to be in recession in the third quarter of FY21 or it ended with the second quarter only. Further, market extended its downfall with Moody's Investors Service stating that loans to retail customers, especially those to low-income borrowers, will remain most affected due to the shock caused by the coronavirus pandemic. Traders ignored Reserve Bank of India’s (RBI) latest data showing that the bank credit growth on a year-on-year basis improved to 6.2 percent in the December quarter (Q3FY21) from 5.8 percent in the previous three-month period. However, credit growth in Q3FY21 was lower when compared to 7.4 percent growth recorded a year ago. Market continued its trade deep in red till the end of the session, amid reports that capital markets regulator Sebi chairman Ajay Tyagi acknowledged the systemic risk concerns raised by the RBI and Financial Stability Board over a disconnect between markets and the real economy, but said that this is a global phenomenon also observed in India. He said that after the massive fall in markets in March 2020, a strong rebound starting from April was the sharpest V-shaped recovery in the last 30 years. Finally, Nifty ended the trade below 14550 mark.
All the sectoral indices ended in red. The top gainers from the F&O segment were National Aluminium Company, SAIL and Navin Fluorine International. On the other hand, the top losers were ONGC, Shriram Transport Finance Company and M&MFIN. In the index option segment, maximum OI continues to be seen in the 15200 - 16300 calls and 13,700 - 14,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 22.93% and reached 28.14. The 50 share Nifty down by 568.20 points or 3.76% to settle at 14,529.15.
Nifty March 2021 futures closed at 14556.35 (LTP) on Friday, at a premium of 27.20 points over spot closing of 14529.15, while Nifty April 2021 futures ended at 14635.00, at a premium of 105.85 points over spot closing. Nifty March futures saw an addition of 41,785 units, taking the total open interest (Contracts) to 1,69,697 units. The near month derivatives contract will expire on March 25, 2021 (Provisional).
From the most active contracts, Reliance Industries March 2021 futures traded at a premium of 7.50 points at 2086.50 (LTP) compared with spot closing of 2079.00. The numbers of contracts traded were 71,857 (Provisional).
Bharti Airtel March 2021 futures traded at a premium of 3.15 points at 557.65 (LTP) compared with spot closing of 554.50. The numbers of contracts traded were 45,155 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 2.40 points at 599.40 (LTP) compared with spot closing of 597.00. The numbers of contracts traded were 39,809 (Provisional).
HDFC Bank March 2021 futures traded at a discount of 2.55 points at 1532.50 (LTP) compared with spot closing of 1535.05. The numbers of contracts traded were 30,286 (Provisional).
SBIN March 2021 futures traded at a premium of 1.45 points at 392.80 (LTP) compared with spot closing of 391.35. The numbers of contracts traded were 28,875 (Provisional).
Among, Nifty calls, 15000 SP from the March month expiry was the most active call with an addition of 3,707 units open interests. Among Nifty puts, 14000 SP from the March month expiry was the most active put with an addition of 2,773 units open interests. The maximum OI outstanding for Calls was at 16000 SP (28,151 units) and that for Puts was at 14000 SP (43,202 units). The respective Support and Resistance levels of Nifty are: Resistance 14,809.82 -- Pivot Point 14,638.78 -- Support -- 14,358.12.
The Nifty Put Call Ratio (PCR) finally stood at (1.79) for March month contract. The top five scrips with highest PCR on PVR (1.52), Nippon Life India Asset Management (1.43), Aarti Industries (1.40), AU Small Finance Bank (1.00) and Navin Fluorine International (1.00).
Among most active underlying, Bharti Airtel witnessed an addition of 6,444 units of Open Interest in the March month futures contract followed by Tata Motors witnessed an addition of 1,257 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 9,883 units of Open Interest in the March month futures contract, SBIN witnessed an addition of 3,356 units of Open Interest in the March month futures contract and ICICI Bank witnessed an addition of 5,724 units of Open Interest in the March month futures contract (Provisional).
