S&P CNX -- Nifty -- exhibited a smart performance in Wednesday’s trade ending with the gains of above two percent. Market made positive start, as principal economic advisor to the finance ministry Sanjeev Sanyal said Indian economy is recovering faster than expected and the government will spend on building infrastructure rather than boosting consumer demand artificially. Additional support also came after assurances from the government that it had enough COVID-19 vaccine doses to cover its population. The government said there were plenty of COVID-19 vaccines for the country even though it has sent quantities abroad. Further, market added more gains with Former Niti Aayog Vice Chairman Arvind Panagariya’s statement that India's economy is on an 'upswing' and the government's plans for increased spending comes in the backdrop of pro-growth reforms. However, he said that it might take longer to become a $5 trillion economy due to the coronavirus pandemic-induced disruptions.
In the last leg of trade, market touched its intraday highpoint, after India's services activity expanded at the fastest rate in a year during February, while employment fell further and companies noted the sharpest rise in overall expenses. The seasonally adjusted India Services Business Activity Index rose from 52.8 in January to 55.3 in February, pointing to the sharpest rate of expansion in output in a year amid improved demand and more favourable market conditions.
Most of the sectoral indices ended in green except Auto. The top gainers from the F&O segment were Granules India, Indiabulls Housing Finance and HDFC Asset Management Company. On the other hand, the top losers were BHEL, Vodafone Idea and Alkem Laboratories. 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 6.41% and reached 22.09. The 50 share Nifty up by 326.50 points or 2.19% to settle at 15,245.60.
Nifty March 2021 futures closed at 15300.00 (LTP) on Wednesday, at a premium of 54.40 points over spot closing of 15245.60, while Nifty April 2021 futures ended at 15367.40 (LTP), at a premium of 121.80 points over spot closing. Nifty March futures saw an addition of 9,626 units, taking the total open interest (Contracts) to 1,45,491 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 9.55 points at 2216.65 (LTP) compared with spot closing of 2207.10. The numbers of contracts traded were 69,481 (Provisional).
SBIN March 2021 futures traded at a premium of 2.95 points at 407.65 (LTP) compared with spot closing of 404.70. The numbers of contracts traded were 25,521 (Provisional).
Tata Steel March 2021 futures traded at a premium of 5.20 points at 780.00 (LTP) compared with spot closing of 774.80. The numbers of contracts traded were 21,824 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 3.25 points at 635.25 (LTP) compared with spot closing of 632.00. The numbers of contracts traded were 18,800 (Provisional).
Infosys March 2021 futures traded at a premium of 10.30 points at 1351.25 (LTP) compared with spot closing of 1340.95. The numbers of contracts traded were 18,062 (Provisional).
Among, Nifty calls, 16000 SP from the March month expiry was the most active call with a contraction of 1,607 units open interests. Among Nifty puts, 15000 SP from the March month expiry was the most active put with an addition of 3,494 units open interests. The maximum OI outstanding for Calls was at 16000 SP (29,436 units) and that for Puts was at 14000 SP (43,083 units). The respective Support and Resistance levels of Nifty are: Resistance 15,347.23 -- Pivot Point 15,171.52 -- Support -- 15,069.88.
The Nifty Put Call Ratio (PCR) finally stood at (1.81) for March month contract. The top five scrips with highest PCR on PVR (1.10), Grasim Industries (1.05), Hero Motocorp (0.92), Vedanta (0.90) and Bajaj Finance (0.88).
Among most active underlying, Reliance Industries witnessed a contraction of 739 units of Open Interest in the March month futures contract followed by Tata Motors witnessed a contraction 7 units of Open Interest in the March month futures contract, SBIN witnessed an addition of 2,779 units of Open Interest in the March month futures contract, Tata Steel witnessed an addition of 2,062 units of Open Interest in the March month futures contract and Adani Ports and Special Economic Zone witnessed an addition of 301 units of Open Interest in the March month futures contract (Provisional).
