Indian equity benchmark -- Nifty -- ended the day in red on Monday tracking mixed global cues. Investors’ sentiments remained pessimistic with the street raising concerns over the Centre’s future reform policies in view of anointment of hardliner Yogi Adityanath as the Chief Minister of the country’s most populous state. Some concerns also came with the report that the all India Consumer Sentiments Index, measured by the BSE and CMIE, has hit a one-year low at 92.25 compared to 99.65 a year ago. This comes even as the wholesale price index based inflation jumped up to a 39-month high of 6.55%. The daily index measures consumer sentiment, expectations and the perceived economic scenario. Besides, weakness in IT stocks due to a stronger rupee against dollar also contributed significantly to market's decline. However, downside remained capped with the report that the Union Cabinet approved four legislations to implement the Goods and Services Tax (GST), ahead of their introduction in Parliament this week to enable roll out of the tax reform from July 1.
Traders were seen piling up positions in PSU, Pharma and Media stocks, while selling was witnessed in IT, Realty and Financial Services stocks. The top gainers from the F&O segment were PC Jeweller, Oriental Bank of Commerce and Divi's Laboratories. On the other hand, the top losers were Idea Cellular, Jaiprakash Associates and Axis Bank. In the index option segment, maximum OI continues to be seen in the 8900-9500 calls and 8400-9100 puts indicating this is the trading range expectation.
The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.39% and reached 12.01. The 50-share Nifty down up by 33.20 points or 0.36% to settle at 9,126.85.
Nifty March 2017 futures closed at 9153.55 on Monday at a premium of 26.70 points over spot closing of 9,126.85, while Nifty April 2017 futures ended at 9184.30, at a premium of 57.45 points over spot closing. Nifty March futures saw an addition of 0.68 million (mn) units, taking the total outstanding open interest (OI) to 25.57 million (mn) units. The near month derivatives contract will expire on March 30, 2017.
From the most active contracts, Idea Cellular March 2017 futures traded at a premium of 0.65 points at 97.85 compared with spot closing of 97.20. The numbers of contracts traded were 64,754.
Reliance Industries March 2017 futures traded at a premium of 4.85 points at 1285.80 compared with spot closing of 1,280.95. The numbers of contracts traded were 10,809.
ICICI Bank March 2017 futures traded at a premium of 1.05 points at 276.25 compared with spot closing of 275.20. The numbers of contracts traded were 10,782.
Infosys March 2017 futures traded at a discount of 0.95 points at 1019.35 compared with spot closing of 1,020.30. The numbers of contracts traded were 10,717.
Axis Bank March 2017 futures traded at a premium of 2.05 points at 504.55 compared with spot closing of 502.50. The numbers of contracts traded were 10,414.
Among Nifty calls, 9200 SP from the March month expiry was the most active call with an addition of 0.27 million open interests. Among Nifty puts, 9100 SP from the March month expiry was the most active put with an addition of 0.04 million open interests. The maximum OI outstanding for Calls was at 9200 SP (6.03 mn) and that for Puts was at 8800 SP (5.62 mn). The respective Support and Resistance levels of Nifty are: Resistance 9157.53--- Pivot Point 9136.92--- Support --- 9106.23.
The Nifty Put Call Ratio (PCR) finally stood at 1.17 for March month contract. The top five scrips with highest PCR on OI were Colgate-Palmolive (India) (2.19), Maruti Suzuki India (1.15), Kotak Mahindra Bank (1.11), HDFC Bank (1.10) and Adani Ports & Special Economic Zone (1.03).
Among most active underlying, Idea Cellular witnessed a contraction of 0.77 million units of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition of 0.15 million units of Open Interest in the March month contract, Tata Steel witnessed a contraction of 0.86 million units of Open Interest in the March month contract, ICICI Bank witnessed an addition of 4.72 million units of Open Interest in the March month future contract and Axis Bank witnessed an addition of 1.63 million units of Open Interest in the March month future contract.