Key equity benchmark -- Nifty -- struggled with worries arising out of China-US tariff dispute and ended first day of the trading week in negative trajectory. Barometer made a negative start as investors remain concerned about the International Monetary Fund warning governments to gear up for a possible economic storm as growth undershoots expectations. It said the bottom-line they see an economy that is growing more slowly than they had anticipated. Investors remained jittery with Economic Affairs Secretary Subhash Chandra Garg’s statement that the country actually faces shortage of capital more than the scarcity of jobs. Street also remained disappointed with a private report that India could lose a vital US trade concession, under which it enjoys zero tariffs on $5.6 billion of exports to the United States, amid a widening dispute over its trade and investment policies.
Market managed to pare some of its losses in the afternoon deals as traders took some solace with report that the Net direct tax collection stood at Rs 7,88,930 crore in the April-January period of current fiscal (2018-19). Investors also found some support with a survey of the Federation of Indian Chambers of Commerce & Industry (FICCI) stating that higher production and a better growth outlook have instilled confidence in manufacturers in the October-December quarter of 2018-19 for ramping up hiring.
All sectoral indices ended in red on NSE except IT and Media. The top gainers from the F&O segment were Sun TV Network, Balkrishna Industries and Ajanta Pharma. On the other hand, the top losers were PC Jeweller, Apollo Hospitals Enterprise and National Aluminium Company. In the index option segment, maximum OI continues to be seen in the 10,800-11,200 calls and 10,200 -10,600 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.75% and reached 15.84. The 50-share Nifty was down by 54.80 points 0.50% to settle at 10,888.80.
Nifty February 2019 futures closed at 10909.60 on Monday, at a premium of 20.80 points over spot closing of 10888.80, while Nifty March 2019 futures ended at 10944.10, at a premium of 55.30 points over spot closing. Nifty February futures saw an addition of 0.78 million (mn) units, taking the total outstanding open interest (OI) to 21.78 mn units. The near month derivatives contract will expire on February 28, 2019.
From the most active contracts, Tata Steel February 2019 futures traded at a premium of 2.45 points at 482.20 compared with spot closing of 479.75. The numbers of contracts traded were 38,918.
Indiabulls Housing Finance February 2019 futures traded at a discount of 2.45 points at 600.55 compared with spot closing of 603.00. The numbers of contracts traded were 24,737.
Reliance Industries February 2019 futures traded at a premium of 5.30 points at 1259.80 compared with spot closing of 1254.50. The numbers of contracts traded were 21,594.
Yes Bank February 2019 futures traded at a premium of 0.70 points at 173.70 compared with spot closing of 173.00. The numbers of contracts traded were 18,996.
Eicher Motors February 2019 futures traded at a premium of 21.20 points at 20671.20 compared with spot closing of 20650.00. The numbers of contracts traded were 17,304.
Among Nifty calls, 10,900 SP from the February month expiry was the most active call with an addition of 0.34 million open interests. Among Nifty puts, 10,800 SP from the February month expiry was the most active put with a contraction of 0.27 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (3.56mn) and that for Puts was at 10,400 SP (3.06mn). The respective Support and Resistance levels of Nifty are: Resistance 10,927.43 ---- Pivot Point 10,892.27 --- Support --- 10,853.63.
The Nifty Put Call Ratio (PCR) finally stood at 1.28 for February month contract. The top five scrips with highest PCR on OI were Shree Cements (2.50), TCS (2.26), Cipla (1.91), Page Industries (1.60) and Axis Bank (1.37).
Among most active underlying, Tata Steel witnessed a contraction of 0.20 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 1.24 million units of Open Interest in the February month contract, Maruti Suzuki India witnessed a contraction of 0.01 million units of Open Interest in the February month contract, State Bank of India witnessed an addition of 1.02 million units of Open Interest in the February month contract and Axis Bank witnessed a contraction of 1.69 million units of Open interest in the February month future contract.