NSE gauge -- Nifty50 -- witnessed considerable losses on Thursday, sliding below its crucial 14,600 levels during the day. Market made a positive start, as the Income Tax Department said it has issued over Rs 2.04 lakh crore worth refunds to more than 2.09 crore taxpayers so far this fiscal year. Of this, personal income tax refunds of Rs 73,607 crore have been issued to over 2.06 crore taxpayers and corporate tax refunds of over Rs 1.31 lakh crore issued in 2.21 lakh cases. Further, market remained in green territory, as former chief of Shanghai-based New Development Bank, K V Kamath expressed optimism that India's sovereign rating would go up on the back of efforts being taken by the government to push economic reforms.
However, in late afternoon session, market wiped out all its gains to turn negative, as traders were cautious with the private report that India's central bank may have to delay the start of monetary policy normalisation by three months amid rising COVID-19 cases, but barring the return of stringent lockdowns there is no significant threat to the economy's recovery. Traders overlooked parliamentary panel has suggested to the Department of Commerce to take appropriate measures to check further deterioration in exports and crucial imports for preventing more disruptions in the supply chains. Finally, nifty ended the day’s trade with cut of above a percent.
Most of the sectoral indices ended in red except FMGC and Metal. The top gainers from the F&O segment were BHEL, ITC and Bajaj Auto. On the other hand, the top losers were Aarti Industries, Info Edge (India) and REC. In the index option segment, maximum OI continues to be seen in the 14700 - 16000 calls and 14,000 - 14,600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 0.38% and reached 20.08. The 50 share Nifty down by 163.45 points or 1.11% to settle at 14,557.85.
Nifty March 2021 futures closed at 14604.00 (LTP) on Thursday, at a premium of 46.15 points over spot closing of 14557.85, while Nifty April 2021 futures ended at 14684.00 (LTP), at a premium of 126.15 points over spot closing. Nifty March futures saw an addition of 3,074 units, taking the total open interest (Contracts) to 1,33,831 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 6.90 points at 2016.90 (LTP) compared with spot closing of 2010.00. The numbers of contracts traded were 39,568 (Provisional).
ITC March 2021 futures traded flat with spot closing of 219.00. The numbers of contracts traded were 30,184 (Provisional).
ICICI Bank March 2021 futures traded at a premium of 2.00 points at 581.80 (LTP) compared with spot closing of 579.80. The numbers of contracts traded were 23,360 (Provisional).
Infosys March 2021 futures traded at a premium of 5.95 points at 1347.75 (LTP) compared with spot closing of 1341.80. The numbers of contracts traded were 21,413 (Provisional).
SBIN March 2021 futures traded at a premium of 0.35 points at 368.55 (LTP) compared with spot closing of 368.20. The numbers of contracts traded were 20,106 (Provisional).
Among, Nifty calls, 15000 SP from the March month expiry was the most active call with an addition of 21,977 units open interests. Among Nifty puts, 14500 SP from the March month expiry was the most active put with an addition of 5,330 units open interests. The maximum OI outstanding for Calls was at 15000 SP (54,692 units) and that for Puts was at 14500 SP (42,137 units). The respective Support and Resistance levels of Nifty are: Resistance 14,795.83 -- Pivot Point 14,637.22 -- Support -- 14,399.23.
The Nifty Put Call Ratio (PCR) finally stood at (0.83) for March month contract. The top five scrips with highest PCR on PVR (1.02), Vedanta (0.91), Infosys (0.81), Grasim Industries (0.80) and Muthoot Finance (0.79).
Among most active underlying, Tata Motors witnessed an addition of 192 units of Open Interest in the March month futures contract followed SBIN witnessed an addition of 186 units of Open Interest in the March month futures contract, ITC witnessed a contraction of 602 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 1,605 units of Open Interest in the March month futures contract and ICICI Bank witnessed an addition of 248 units of Open Interest in the March month futures contract (Provisional).
