NSE gauge -- Nifty50 -- witnessed considerable losses on Wednesday, sliding below its crucial 14,600 levels during the day. Market begun day on a somber note, as death toll from the deadly infection jumped to 160,477. India has the 7th highest number of active cases globally. Maharashtra recorded 28,699 new Covid-19 cases and 132 deaths. Further, market extended its losses after the IMF's managing director said that prospects for a recovery from the COVID-induced economic slowdown are uncertain and uneven, with some emerging economies and almost all low-income countries at risk of lower growth.
Traders failed to draw any sense of relief, as Union Minister of State for Finance and Corporate Affairs Anurag Singh Thakur has stated that the government will spend Rs 1.97 lakh crore on production-linked incentive (PLI) and has identified more than 10 sectors to be included, which would in turn create job opportunities for the youth. He also said people who are raising apprehension about the recovery of the economy should see GST collections of the past few months. He noted that the GST collection rose, which was over Rs 1.10 lakh crore in the last five year. This was because of the policy adopted by our government. In the last leg of trade, market touched its intraday low point, as fears that authorities may tighten restrictions further as covid-19 cases continue to surge. Finally, Nifty ended the day’s trade with cut of above one and half a percent.
Most of the sectoral indices ended in red except Pharma. The top gainers from the F&O segment were Aarti Industries, Cipla and Asian Paints. On the other hand, the top losers were Motherson Sumi Systems, Tata Steel and RBL Bank. In the index option segment, maximum OI continues to be seen in the 14700 - 16700 calls and 13,900 - 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 8.66% and reached 22.46. The 50 share Nifty down by 265.35 points or 1.79% to settle at 14,549.40.
Nifty March 2021 futures closed at 14568.10 (LTP) on Wednesday, at a premium of 18.70 points over spot closing of 14549.40, while Nifty April 2021 futures ended at 14663.95 (LTP), at a premium of 114.55 points over spot closing. Nifty March futures saw an addition of 730 units, taking the total open interest (Contracts) to 78,145 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 2.00 points at 2052.00 (LTP) compared with spot closing of 2050.00. The numbers of contracts traded were 36,868 (Provisional).
ICICI Bank March 2021 futures traded at a discount of 0.10 points at 569.00 (LTP) compared with spot closing of 569.10. The numbers of contracts traded were 26,361 (Provisional).
HDFC Bank March 2021 futures traded at a premium of 4.70 points at 1487.60 (LTP) compared with spot closing of 1482.90. The numbers of contracts traded were 20,709 (Provisional).
Infosys March 2021 futures traded at a premium of 1.30 points at 1357.25 (LTP) compared with spot closing of 1355.95. The numbers of contracts traded were 18,825 (Provisional).
SBIN March 2021 futures traded at a premium of 0.65 points at 360.90 (LTP) compared with spot closing of 360.25. The numbers of contracts traded were 18,174 (Provisional).
Among, Nifty calls, 14700 SP from the March month expiry was the most active call with an addition of 39,883 units open interests. Among Nifty puts, 14500 SP from the March month expiry was the most active put with a contraction of 3,824units open interests. The maximum OI outstanding for Calls was at 15000 SP (74,571units) and that for Puts was at 14000 SP (57,372 units). The respective Support and Resistance levels of Nifty are: Resistance 14,689.50 -- Pivot Point 14,612.25 -- Support -- 14,472.15.
The Nifty Put Call Ratio (PCR) finally stood at (0.76) for March month contract. The top five scrips with highest PCR on Infosys (1.15), ACC (1.05), Hindustan Unilever (1.02), JSW Steel (0.91) and Mindtree (0.90).
Among most active underlying, Adani Enterprises witnessed a contraction of 196 units of Open Interest in the March month futures contract followed Tata Motors witnessed a contraction of 776 units of Open Interest in the March month futures contract, ICICI Bank witnessed an addition of 4,793 units of Open Interest in the March month futures contract, SBIN witnessed an addition of 1,342 units of Open Interest in the March month futures contract and Reliance Industries witnessed an addition of 3,280 units of Open Interest in the March month futures contract (Provisional).
