Indian benchmark -- Nifty -- finished the session in red zone on Tuesday. Market made positive start, as traders found support with the government data showing that the country's exports rose marginally by 0.67 per cent year-on-year to $27.93 billion in February, growing for the third consecutive month, even as trade deficit widened to $12.62 billion. Imports rose by 6.96 per cent to $40.54 billion in the month. Market maintained its gains, as the finance ministry said it has released the full Rs 1.10 lakh crore estimated GST compensation shortfall to the states with the release of final weekly installment of Rs 4,104 crore. With the release of the 20th installment, 100 per cent of the total estimated GST compensation shortfall of Rs 1.10 lakh crore for the year 2020-21 has now been released to the states and UTs with Legislative Assembly. However, in late afternoon session, index trimmed most its gains to trade volatile, as Credit rating agency ICRA’s report stated that the states may face a shortfall of Rs 2.7-3 lakh crore as Goods and Services Tax (GST) compensation from the Centre next fiscal. Out of that amount, the shortfall from cess collections will be at Rs 1.6-2 lakh crore. Finally, Nifty ended the session below 14950 mark.
Most of the sectoral indices ended in red except Auto, FMGC and IT. The top gainers from the F&O segment were Mphasis, COFORGE and Gujarat Gas. On the other hand, the top losers were PNB, Voltas and BHEL. 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 4.88% and reached 20.19. The 50 share Nifty down by 19.05 points or 0.13% to settle at 14,910.45.
Nifty March 2021 futures closed at 14974.50 (LTP) on Tuesday, at a premium of 64.05 points over spot closing of 14910.45, while Nifty April 2021 futures ended at 15045.00 (LTP), at a premium of 134.55 points over spot closing. Nifty March futures saw a contraction of 5,873 units, taking the total open interest (Contracts) to 1,43,357 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 10.40 points at 2111.15 (LTP) compared with spot closing of 2100.75. The numbers of contracts traded were 22,819 (Provisional).
Infosys March 2021 futures traded at a premium of 7.40 points at 1392.00 (LTP) compared with spot closing of 1384.60. The numbers of contracts traded were 18,780 (Provisional).
SBIN March 2021 futures traded at a premium of 0.60 points at 379.50 (LTP) compared with spot closing of 378.90. The numbers of contracts traded were 17,263 (Provisional).
TCS March 2021 futures traded at a premium of 16.90 points at 3122.90 (LTP) compared with spot closing of 3106.00. The numbers of contracts traded were 15,309 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 2.90 points at 597.50 (LTP) compared with spot closing of 594.60. The numbers of contracts traded were 14,321 (Provisional).
Among, Nifty calls, 15000 SP from the March month expiry was the most active call with an addition of 2,576 units open interests. Among Nifty puts, 14500 SP from the March month expiry was the most active put with an addition of 568 units open interests. The maximum OI outstanding for Calls was at 16000 SP (33,822 units) and that for Puts was at 14500 SP (36,044 units). The respective Support and Resistance levels of Nifty are: Resistance 15,011.15 -- Pivot Point 14,950.90 -- Support -- 14,850.20.
The Nifty Put Call Ratio (PCR) finally stood at (1.29) for March month contract. The top five scrips with highest PCR on PVR (1.06), Muthoot Finance (0.97), Infosys (0.89), Indus Tower (0.81) and Tech Mahindra (0.81).
Among most active underlying, SBIN witnessed a contraction of 406 units of Open Interest in the March month futures contract followed Infosys witnessed an addition of 2,940 units of Open Interest in the March month futures contract, TCS witnessed an addition of 828 units of Open Interest in the March month futures contract, Tata Motors witnessed an addition of 46 units of Open Interest in the March month futures contract and Vedanta witnessed an addition of 1,781 units of Open Interest in the March month futures contract (Provisional).
