Market firms up; VIX cools 4%

Key equity indices firmed up and traded near the day's high in early afternoon trade. The Nifty scaled 11,850 level amid bargain hunting. At 12:24 IST, the barometer index, the S&P BSE Sensex, was up 120.21 points or 0.31% at 40,486.90. The Nifty 50 index was up 26.6 points or 0.22% at 11,856.

The broader indices traded near the flat line. The S&P BSE Mid-Cap index was up 0.15% while the S&P BSE Small-Cap index was down 0.01%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1016 shares rose and 1120 shares fell. A total of 143 shares were unchanged. In Nifty 50, market breadth was positive with 33 stocks advancing and 17 stocks declining.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 4.13% to 16.2950. The Nifty February 2020 futures were trading at 11,873, a premium of 9.5 points compared with the spot at 11,863.50

On the options front, the Nifty option chain for 27 February 2020 expiry showed maximum call open interest (OI) of 53.83 lakh contracts at the 12,000 strike price. Massive call writing was witnessed at 11,900 strike price, which added 12.21 lakh contracts. Significant call unwinding was seen at 12,250 strike price which shed 2.03 lakh contracts.

Maximum put OI of 42.11 lakh contracts was seen at 11,800 strike price. Massive put writing was observed at 11,800 strike price which added 11.56 lakh contracts. Put unwinding was observed at 12,100 strike price which shed 1.42 lakh contracts.

Stocks in Spotlight:

State Bank of India (SBI) was up 0.98%. The price band of initial public offering (IPO) of SBI Cards and Payment Services has been fixed in the price range of Rs 750-755 per share. The issue will open for subscription on 2 March and close on 5 March. The IPO comprises a fresh issue of Rs 500 crore, while the offer for sale would see the promoters offload 13 crore shares.

JSW Steel was up 1.29%. The company said on Monday it has been declared as a preferred bidder for an iron ore mine in Odisha. The projected iron ore resource in this mine as per tender documents is 39.4 million tonnes.

Hindustan Unilever (HUL) added 1.99%. HUL's board approved a proposal to form a new 100% subsidiary with an authorised share capital of Rs 2000 crore. This new subsidiary will leverage the growth opportunities in a fast-changing business environment and will help HUL in becoming more agile and customer-focused.

Lumax Auto Technologies rose 3.73% to Rs 105.75 after its board approved the acquisition of roto moulded plastic Auto Component Business of OK Play Group. The acquisition will provide Lumax access to latest rota molding technologies and will enable the company to exploit fast-emerging growth opportunities in the automotive rota moulded plastic fuel tanks market for commercial vehicles, tractors and offroad vehicles in view of changing regulatory environment.

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