Snapping its three days winning streak, key benchmark -- Nifty -- ended the Friday’s trade below its crucial 15,050 levels. Market made positive start with Commerce Secretary Anup Wadhawan’s statement that the country's exports are steadily recovering and it is expected to record a healthy growth rate in March. Further, market maintained its gains, as traders found support with PHD Chamber of Commerce and Industry report showing that as economic activities gather pace and investor sentiments revive, GDP growth is likely to enter a double-digit growth trajectory and may grow at more than 11 per cent in the next financial year. Some additional support also came with the Reserve Bank of India (RBI) stating that it will conduct simultaneous purchase and sale of government securities for Rs 10,000 crore each under Open Market Operations (OMOs) on March 18, 2020.
However, in the late afternoon session, index wiped out all its gains and turns negative with the private report that number of industrial investment proposals touched a record low in 2020, the pandemic year. And in value terms they were at a three year low as economic activity came to a standstill during the prolonged lockdown in the quarter ended June. Besides, India reported 21,668 fresh Covid-19 cases on Thursday pushing the overall tally to 11,305,979, according to Worldometer. The death toll from the deadly infection jumped to 158,326. The country continues to be second-most-affected globally, and ranks 11th among worst-hit nations by active cases. Finally, Nifty ended the trade with the cut of over half a percent.
All the sectoral indices ended in red. The top gainers from the F&O segment were Tata Power, BPCL and PFC. On the other hand, the top losers were Trent, MFSL and ICICI Prudential Life Insurance. 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 4.62% and reached 21.71. The 50 share Nifty down by 143.85 points or 0.95% to settle at 15,030.95.
Nifty March 2021 futures closed at 15036.40 (LTP) on Friday, at a premium of 5.45 points over spot closing of 15030.95, while Nifty April 2021 futures ended at 15107.15 (LTP), at a premium of 76.20 points over spot closing. Nifty March futures saw an addition of 8,415 units, taking the total open interest (Contracts) to 1,57,471 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 9.00 points at 2145.90 (LTP) compared with spot closing of 2136.90. The numbers of contracts traded were 36,511 (Provisional).
SBI Life Insurance March 2021 futures traded at a premium of 1.25 points at 916.95 (LTP) compared with spot closing of 915.70. The numbers of contracts traded were 26,483 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 1.35 points at 614.80 (LTP) compared with spot closing of 613.45. The numbers of contracts traded were 24,222 (Provisional).
SBIN March 2021 futures traded at a premium of 0.50 points at 381.60 (LTP) compared with spot closing of 381.10. The numbers of contracts traded were 22,128 (Provisional).
Tata Power March 2021 futures traded at a premium of 0.60 points at 113.60 (LTP) compared with spot closing of 113.00. The numbers of contracts traded were 18,396 (Provisional).
Among, Nifty calls, 15500 SP from the March month expiry was the most active call with an addition of 4,544 units open interests. Among Nifty puts, 15000 SP from the March month expiry was the most active put with an addition of 1,635 units open interests. The maximum OI outstanding for Calls was at 16000 SP (40,109 units) and that for Puts was at 14000 SP (38,694 units). The respective Support and Resistance levels of Nifty are: Resistance 15,260.30 -- Pivot Point 15,106.95 -- Support -- 14,877.60.
The Nifty Put Call Ratio (PCR) finally stood at (1.36) for March month contract. The top five scrips with highest PCR on Indus Tower (0.91), Muthoot Finance (0.87), SAIL (0.85), PVR (0.83) and Bajaj Finance (0.77).
Among most active underlying, Tata Power witnessed an addition of 1,061 units of Open Interest in the March month futures contract followed SBIN witnessed an addition of 681 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 2,607 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 247 units of Open Interest in the March month futures contract and SBI Life witnessed an addition of 6,206 units of Open Interest in the March month futures contract (Provisional).
