Nifty gave powerful performance by surging above one and half percent on Monday, surpassing its psychological level of 14,750. Market made strong start, after India Ratings and Research (Ind-Ra) upgraded its FY21 credit growth estimates to 6.9 per cent from 1.8 per cent, given the improved economic environment in 2H FY21 and the government's focus on higher -- spending especially on infrastructure. Further, market extended its gains, as domestic economy returning to growth in the October-December period after two quarters of contraction. India’s gross domestic product returned to growth -- of 0.4 per cent -- in October-December. The Ministry of Finance said this is a ‘reflection of further strengthening of V-shaped recovery’, which began in Q2 of 2020-21, especially after a large GDP contraction in Q1 due to the lockdown. Traders remained optimistic, as the Indian equities continued to scale new highs post the Union Budget for FY22, the net foreign portfolio investments (FPI) into the Indian equities in February was Rs 25,787 crore. Foreign investments have continued to flow in post the Union Budget which announced further liberalisation measures including privatisation of banks and also did not come up with a new tax levy.
In late afternoon session, market continued its trade above 14750 mark till the end of the session, as the finance ministry said the GDP growth of 0.4 per cent in the December quarter shows that the economy has returned to pre-pandemic times and reflects further strengthening of a V-shaped recovery. It also said the initial policy choice of ‘lives over livelihoods’ succeeded by ‘lives as well as livelihoods’ is now bearing positive results converging with the foresight the government had about an imminent V-shaped recovery.
Most of the sectoral indices ended in green except PSU Bank. The top gainers from the F&O segment were Deepak Nitrite, IRCTC and Gujarat Gas. On the other hand, the top losers were Bharti Airtel, Bank of Baroda and Indus Tower. 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 decreased by 8.94% and reached 25.63. The 50 share Nifty up by 232.40 points or 1.60% to settle at 14,761.55.
Nifty March 2021 futures closed at 14816.90 (LTP) on Monday, at a premium of 55.35 points over spot closing of 14761.55, while Nifty April 2021 futures ended at 14886.85 (LTP), at a premium of 125.30 points over spot closing. Nifty March futures saw a contraction of 3,483 units, taking the total open interest (Contracts) to 1,41,455 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 7.45 points at 2110.95 (LTP) compared with spot closing of 2103.50. The numbers of contracts traded were 40,106 (Provisional).
Bharti Airtel March 2021 futures traded at a premium of 3.90 points at 536.50 (LTP) compared with spot closing of 532.60. The numbers of contracts traded were 31,434 (Provisional).
Maruti Suzuki March 2021 futures traded at a premium of 23.10 points at 7042.00 (LTP) compared with spot closing of 7018.90. The numbers of contracts traded were 18,432 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 2.60 points at 611.35 (LTP) compared with spot closing of 608.75. The numbers of contracts traded were 18,100 (Provisional).
Tata Motors March 2021 futures traded at a premium of 2.20 points at 329.90 (LTP) compared with spot closing of 327.70. The numbers of contracts traded were 15,555 (Provisional).
Among, Nifty calls, 15000 SP from the March month expiry was the most active call with a contraction of 976 units open interests. Among Nifty puts, 14000 SP from the March month expiry was the most active put with an addition of 1,583 units open interests. The maximum OI outstanding for Calls was at 16000 SP (31,883 units) and that for Puts was at 14000 SP (43,964 units). The respective Support and Resistance levels of Nifty are: Resistance 14,832.72 -- Pivot Point 14,735.63 -- Support -- 14,664.47.
The Nifty Put Call Ratio (PCR) finally stood at (1.70) for March month contract. The top five scrips with highest PCR on Alembic Pharmaceuticals (1.38), PVR (1.34), AU Small Finance Bank (1.25), Page Industries (1.09) and Grasim Industries (1.06).
Among most active underlying, Bharti Airtel witnessed an addition of 6,297 units of Open Interest in the March month futures contract followed by Tata Motors witnessed an addition of 379 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 2,018 units of Open Interest in the March month futures contract, SBIN witnessed an addition of 95 units of Open Interest in the March month futures contract and Tata Steel witnessed an addition of 444 units of Open Interest in the March month futures contract (Provisional).
