Indian Stocks 29 February2016

1.0      National Stock Exchange (NSE) Benchmark Index Nifty50 :-

[A]       Movement of Benchmark Index : 

Nifty50 opened with upward gap of 20 point at 7,050; sliped to 7,000 level and hovered around 7,000; During the Union Budget speech by Finance Minister Nifty50 climbed back to 7,047 and witnessed steep volatility; Reacting to Budget announcements, Nifty50 lost 3% or 220 point and made Day's low at 6,825 in "free fall Mode"; Thereafter, Nifty50 made V shape recovery of 3.8% or 269 point and made day's high at 7,094; From Day's High Nifty50 slipped below 7,000 level and finally closed at  6,987 or 0.61 % Lower.

[B]         Movements in Derivative Contracts of Bench Mark Index Nifty50 :

(i)        Near Month or March'16 expiry Nifty50 Future was closed with Cost of Carry of 4.69 at 7,014 or 0.57% lower. Open Interest decreased by 2.43%. Decrease in OI indicates Long Unwinding.

(ii)    Near month Expiry or March16 Expiry Option Contracts:-

Highest Open Interest(OI) of Call Options was at 7,500 strike (Same as previous session). Fresh Short Built up at 7,500 Call strike was seen.

Highest OI of Put Options was at 7,000 Put strike (no change). Long Unwinding was seen at 7,000 PUT strike.

Highest trading volume of Call options was recorded at 7,300 strike, whereas highest trading volume of Put options was recorded at 6,800 strike. 

(iii)     

Implied volatility (IV) of Near month March'16 Expiry 7,000 strike Call Option was seen at 16.94, whereas IV of Near month 7,000 strike Put Option was seen at 21.14.

(iv)     

Near Month options (March16 Expiry)  options,

Put Call Ratio (PCR) was recorded as 0.79(Vol), against previous sessions 0.80(vol)
At the end of today's session, PCR  was recorded as 0.88 (OI), against previous session's 0.90 (OI) .

2.0         Movement of India Volatility - Index INDIA VIX :-

           IndiaVix traded flat and thereafter slipped into RED Zone and finally closed at 20.1575 or 7.81 % LOWER.

3.0 Advance Decline Ratio(ADR) :-

          NSE Advance Decline Ratio(ADR) opened near 1. Thereafter, market strength deteriorated to 0.31 and again started to improve. ADR finally closed at 0.74 i.e. on NSE, 640 stocks closed in GREEN against 863 stocks closed in RED or in simple words, out of every 100 stocks 43 stock closed with gain.

4.0 Movement of Currency Future :-

At the end of session, USD-INR Near Month future(March'16 Exp) closed in RED at 68.7875 INR 0r 0.4% LOWER.

5.0 Sectoral Indices - Closing:- 

At the end of session 

NiftyMetal Index closed 0.25% Higher.
NiftyPharma Index closed 0.03% Higher.
BankNifty Index closed 1.12% Higher.
Nifty Reality Index closed 0.15% Higher.
Nifty FMCG Index closed 0.14% Higher.

NiftyAuto Index closed 1.01%Lower

Nifty IT Index closed 1.77% Lower

6.0 Daily Movement of the  Front line  Stocks :-

At the end of session 

RELIANCE closed 1.54% Higher.

SBIN Closed  2.28%  Higher.
SUNPHARMA closed 1.85 % Lower. 

TATASTEEL Closed 0.36% Lower.
TATAMOTORS closed 0.6% Lower.
INFOSYS closed 3.18% Lower.
Hindustan Unilever closed 2.81% Lower.

7.0 New 52 Week High made by front line  stocks during the Day :-

             
              Not Any

8.0 New 52 Week Low made by front line  stocks during the Day :-

Following  front-line stocks of Nifty50 / major Sectoral  Index made fresh 52 week low in today's trade. Figures in brackets shows the % difference of today's closing rate with respect to previous session closing rate. 

ACC (+ 0.76%)
HDFC BANK (+1.47%)
KOTAKBANK(+2.66%)
ITC(+1.63%)
CANARA BANK (-1.67%)
Tech Mahendra (-0.45%)
BHEL (-4.89%)
Maruti(-4.29%)
CIPLA(-2.28%)
WIPRO(-1.79%)
TCS (-1.74%)
Ambuja Cement (-0.74%)

Godrej Industry (-3.56%)
Colgate (-1.39%)
GSK Consumer( 0% )
JINDAL SAW (-1.09%)
Prestige Estate (-3.75%)
Phonix Mill (-2.60%)
DELTA CORP (-3.59%)

9.0 Derivative Stock with Extra-ordinary price movement :

             Oil & Natural Gas Corporation Limited

  

             In today's trade the stocks prices of this leading Public sector company operating in Oil and Gas sector were decreased by 10.76% or 23.25 Inr. Stock finally closed at 192.80 INR at day's low. Open Interest (OI) of near month or March16 Expiry future was increased by 45.62%. Cost of carry was recorded as -1.83 meaning Future was trading at DISCOUNTED price to Cash Prices. Implied Volatility (IV) of Near Month 190 Call strike option was recorded as 36.60 and IV of 190 Put strike option was recorded as 47.45. Highest OI of call options were built up at 220 call strike and Highest OI of Put options were built up at 190 Put strike. 

10.0 Daily Turnover on NSE :-

On NSE, Turnover in Equity segment was 24,880 Crore INR which was HIGHER than previous session; Turnover in Derivative segment was 3,85,716 crore INR which was HIGHER than previous session. 

11.0 FIIs/DIIs Daily Activity :-

As per EoD provisional statistics, FII/FPIs SOLD equity worth 2,018 Crore INR (net), whereas DIIs Bought equity worth 1,445 crore INR(net).

12.0 Important Development during the Day :-

Earlier Major Asian Stock Markets closed in RED, London stock market closed FLAT whereas German stock market closed in RED. At the time of writing this, USA stock markets major Indices were trading in RED.
In Indian stock market, today Foreign Institutional Investors (FII) / Foreign Portfolio Investors (FPI) Accelerated their SELLING of Indian Equity. In today's Trade, Domestic Institutional Investors (DII) tried to absorb that SELLING.
During the trading session, Union Budget for next financial year 2016-17 was presented in Indian Parliament. Reacting to the various Budget proposals and Increase in Tax and Nifty50 witnessed a high volatile swing trade 

13.0 Way Ahead :-

At the end of session, India Vix is placed in RED near 20. NSE ADR is placed at 0.74. Both these together indicates NEUTRAL view with slightly positive bias for upcoming session.  

Important Disclaimer :-

Writer may have position in market/s as per risk profile and market condition. Reader/s must consult financial adviser/s, while acting on provided information. Writer may have discussed similar things with friends in group.

Written on :  1st March 2016 01:00 Hrs (Indian Standard TIme).