Update from ACE Equity:
S&P CNX -- Nifty-- continued its gaining momentum for the sixth day and ended the day’s trade at fresh closing highs. Market made a positive start with Economic Affairs Secretary Tarun Bajaj’s statement that the government is sticking to the target of becoming a $5 trillion economy by 2024-25 and emphasis on infrastructure sector and other initiatives taken in Budget 2021-22 are aimed at achieving the goal. Further, market added gains to trade fine- fettle, as traders found support with Expenditure Secretary T V Somanathan’s statement that the government is confident of lowering the fiscal deficit to 4.5 per cent of GDP by 2025-26 fiscal, considering a nominal GDP growth of 10 per cent every year.
Sentiments remained upbeat, as foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 12,266 crore in the Indian market in the first five trading sessions of February, as positive sentiment post-Union Budget 2021 sparked a rally in investment.
In late afternoon session, market touched its intraday high point, after the Reserve Bank of India (RBI) has decided to conduct purchase of Government securities under Open Market Operations (OMO) for an aggregate amount of Rs 20,000 crore on February 10, 2021. Finally, nifty ended the session above 15100 mark, as Finance Minister Nirmala Sitharaman said the government will work with the Reserve Bank for execution of the bank privatisation plan announced in the budget. She also said that the government has no plan to form any bank investment company to house the government stakes in banks.
Most of the sectoral indices ended in green except FMGC and PSU Bank. The top gainers from the F&O segment were CONCOR, M&M and Ramco Cement. On the other hand, the top losers were BHEL, Indus Tower and PNB. In the index option segment, maximum OI continues to be seen in the 14100 - 16000 calls and 13,700 - 14,500 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 2.31% and reached 23.96. The 50 share Nifty up by 191.55 points or 1.28% to settle at 15,115.80.
Nifty February 2021 futures closed at 15135.50 (LTP) on Monday, at a premium of 19.70 points over spot closing of 15115.80, while Nifty March 2021 futures ended at 15175.00 (LTP), at a premium of 59.20 points over spot closing. Nifty February futures saw an addition of 2,194 units, taking the total open interest (Contracts) to 1,49,956 units. The near month derivatives contract will expire on February 25, 2021 (Provisional).
From the most active contracts,
- Reliance Industries February 2021 futures traded at a premium of 8.00 points at 1959.50 (LTP) compared with spot closing of 1951.50. The numbers of contracts traded were 39,609 (Provisional).
- SBIN February 2021 futures traded at a premium of 0.85 points at 396.80 (LTP) compared with spot closing of 395.95. The numbers of contracts traded were 32,900 (Provisional).
- Tata Steel February 2021 futures traded at a premium of 3.80 points at 706.40 (LTP) compared with spot closing of 702.60. The numbers of contracts traded were 25,486 (Provisional).
- ICICI Bank February 2021 futures traded at a premium of 3.55 points at 633.45 (LTP) compared with spot closing of 629.90. The numbers of contracts traded were 22,404 (Provisional).
- Tata Motors February 2021 futures traded at a premium of 1.80 points at 337.95 (LTP) compared with spot closing of 336.15. The numbers of contracts traded were 20,352 (Provisional).
- Among, Nifty calls, 15500 SP from the February month expiry was the most active call with an addition of 6,247 units open interests. Among Nifty puts, 15000 SP from the February month expiry was the most active put with an addition of 5,875 units open interests. The maximum OI outstanding for Calls was at 15500 SP (26,972 units) and that for Puts was at 14000 SP (51,197 units). The respective Support and Resistance levels of Nifty are: Resistance 15,170.12 -- Pivot Point 15,105.58 -- Support -- 15,051.27.
- The Nifty Put Call Ratio (PCR) finally stood at (1.71) for February month contract. The top five scrips with highest PCR on SBIN (1.66), Vedanta (1.17), ICICI Bank (1.16), UltraTech Cement (1.10) and HDFC Bank (1.09).
Among most active underlying, SBIN witnessed an addition of 289 units of Open Interest in the February month futures contract followed by Tata Motors witnessed an addition of 1,267 units of Open Interest in the February month futures contract, Tata Steel witnessed a addition of 1,556 units of Open Interest in the February month futures contract, Bharti Airtel witnessed a contraction of 759 units of Open Interest in the February month futures contract and M&M witnessed an addition of 684 units of Open Interest in the February month futures contract (Provisional)