Nifty ends in green on Tuesday

Nifty -- finished Tuesday’s trade with the gains of above half a percent. Market made a positive start, as FICCI's latest quarterly survey on manufacturing assessed recovery of the sector for Q-3 (October-December 2020-21) and pointed that it is expected to regain the lost momentum in the Q-4. In afternoon session, market turned volatile for little time, with a private report that the pandemic-induced shocks to the economy which have already shaved off 15.7 per cent of the GDP from the previous year, will delay the ambitious target of becoming the third largest economy by three years to 2031-32 now. However, in late afternoon session, index extended its gains to touched intraday highpoint, as overall capacity utilization in manufacturing has witnessed a rise to 74 per cent as compared to 65 per cent in previous quarter. The future investment outlook, however, looks slightly better as 30 per cent respondents reported plans for capacity additions for the next six months as compared to 18 per cent in the previous quarter. Finally, nifty ended the day’s trade above its 14800 level.

Most of the sectoral indices ended in green except FMGC, Media and Metal. The top gainers from the F&O segment were Adani Enterprises, Shree Cement and Bandhan Bank. On the other hand, the top losers were ONGC, Hindalco and IOC. In the index option segment, maximum OI continues to be seen in the 14700 - 16700 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 increased by 0.84% and reached 20.67. The 50 share Nifty up by 78.35 points or 0.53% to settle at 14,814.75.

Nifty March 2021 futures closed at 14825.35 (LTP) on Tuesday, at a premium of 10.60 points over spot closing of 14814.75, while Nifty April 2021 futures ended at 14915.40 (LTP), at a premium of 100.65 points over spot closing.  Nifty March futures saw a contarction of 1,737 units, taking the total open interest (Contracts) to 1,04,889 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 4.10 points at 2082.90 (LTP) compared with spot closing of 2078.80. The numbers of contracts traded were 51,115 (Provisional).

ICICI Bank March 2021 futures traded at a premium of 0.95 points at 587.00 (LTP) compared with spot closing of 586.05. The numbers of contracts traded were 33,009 (Provisional).

HDFC Bank March 2021 futures traded at a premium of 1.90 points at 1505.90 (LTP) compared with spot closing of 1504.00. The numbers of contracts traded were 27,852 (Provisional).

SBIN March 2021 futures traded at a premium of 1.10 points at 373.15 (LTP) compared with spot closing of 372.05. The numbers of contracts traded were 22,875 (Provisional).

Axis Bank March 2021 futures traded at a premium of 0.20 points at 731.20 (LTP) compared with spot closing of 731.00. The numbers of contracts traded were 22,281 (Provisional).

Among, Nifty calls, 15000 SP from the March month expiry was the most active call with a contraction of 1,550 units open interests. Among Nifty puts, 14700 SP from the March month expiry was the most active put with an addition of 11,587 units open interests. The maximum OI outstanding for Calls was at 15000 SP (55,402 units) and that for Puts was at 14500 SP (58,727 units). The respective Support and Resistance levels of Nifty are: Resistance 14,893.23 -- Pivot Point 14,800.12 -- Support -- 14,721.63.

The Nifty Put Call Ratio (PCR) finally stood at (1.07) for March month contract. The top five scrips with highest PCR on PVR (1.06), Hindustan Unilever (1.02), Hindalco (1.01), ACC (0.95) and Tech Mahindra (0.93).

Among most active underlying, Adani Enterprises witnessed a contraction of 51 units of Open Interest in the March month futures contract followed Adani Ports witnessed an addition of 497 units of Open Interest in the March month futures contract, Reliance Industries witnessed an addition of 979 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 3,709 units of Open Interest in the March month futures contract and SBIN witnessed an addition of 1,430 units of Open Interest in the March month futures contract (Provisional).