Nifty extended its upward journey for second straight session and ended the trade with gains of above a percent. Market made optimistic start, as the finance ministry stated that GST collections crossed the Rs 1 lakh crore-mark for the fifth month in a row in February, rising 7 per cent annually to over Rs 1.13 lakh crore, indicating economic recovery. Goods and Services Tax (GST) collections had risen for two straight months to touch record Rs 1,19,875 crore in January and Rs 1.15 lakh crore in December. However, market trimmed some of its gains but managed to trade in green, as Reserve Bank of India (RBI) remained net buyer of the US dollar in December after it purchased $3.991 billion from the spot market. Some comfort also came with the finance ministry stating that the Centre has released Rs 1.04 lakh crore to states in four months since October 2020, to meet GST compensation shortfall.
In the last leg of trade, market touched its intraday high point, as the Crisil report stated that on the back of timely government and regulatory measures this fiscal, which helped the economy to recover faster than expected, bank credit is seen growing 400-500 bps to 9-10 percent in the next financial year. In the current fiscal, bank credit is expected to rise 4-5 percent despite the sharpest contraction in the economy since Independence. Finally, Nifty finished the trade above 14900 mark.
Most of the sectoral indices ended in green except PSU Bank. The top gainers from the F&O segment were Trent, LTI and L&T Technology Services. On the other hand, the top losers were Godrej Properties, IRCTC and ONGC. 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 7.88% and reached 23.61. The 50 share Nifty up by 157.55 points or 1.07% to settle at 14,919.10.
Nifty March 2021 futures closed at 14982.70 (LTP) on Tuesday, at a premium of 63.60 points over spot closing of 14919.10, while Nifty April 2021 futures ended at 15056.95 (LTP), at a premium of 137.85 points over spot closing. Nifty March futures saw an addition of 13,614 units, taking the total open interest (Contracts) to 1,44,379 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 9.90 points at 2118.85 (LTP) compared with spot closing of 2108.95. The numbers of contracts traded were 35,509 (Provisional).
Tata Motors March 2021 futures traded at a premium of 2.25 points at 347.40 (LTP) compared with spot closing of 345.15. The numbers of contracts traded were 29,194 (Provisional).
Infosys March 2021 futures traded at a premium of 9.00 points at 1317.65 (LTP) compared with spot closing of 1308.65. The numbers of contracts traded were 26,076 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 1.90 points at 613.75 (LTP) compared with spot closing of 611.85. The numbers of contracts traded were 22,070 (Provisional).
Bharti Airtel March 2021 futures traded at a premium of 2.95 points at 544.65 (LTP) compared with spot closing of 541.70. The numbers of contracts traded were 21,405 (Provisional).
Among, Nifty calls, 15000 SP from the March month expiry was the most active call with an addition of 1,714 units open interests. Among Nifty puts, 14500 SP from the March month expiry was the most active put with an addition of 2,495 units open interests. The maximum OI outstanding for Calls was at 16000 SP (31,437 units) and that for Puts was at 14000 SP (46,373 units). The respective Support and Resistance levels of Nifty are: Resistance 14,998.53 -- Pivot Point 14,879.67 -- Support -- 14,800.23.
The Nifty Put Call Ratio (PCR) finally stood at (1.76) for March month contract. The top five scrips with highest PCR on PVR (1.14), Hero Motocorp (1.05), Grasim Industries (0.94), Vedanta (0.94) and BHEL (0.81).
Among most active underlying, Tata Motors witnessed an addition of 1,771 units of Open Interest in the March month futures contract followed by Bharti Airtel witnessed an addition of 743 units of Open Interest in the March month futures contract, Infosys witnessed an addition of 5,968 units of Open Interest in the March month futures contract, SBIN witnessed an addition of 1,985 units of Open Interest in the March month futures contract and Reliance Industries witnessed an addition of 4,546 units of Open Interest in the March month futures contract (Provisional.
