Sensex slips below 50,000 mark; WPI inflation rises to 4.17 per cent in February, Nahar Poly Films locks in upper circuit

The Indian benchmark indices are reeling under selling pressure from the word go in Monday’s trading session.  

Nifty and Sensex have slipped below their important psychological marks of 14,800 and 50,000, respectively. The broader indices too are in deep red with Nifty Mid-cap and Small-cap slipping by 1.56 per cent and 1.32 per cent, respectively. The selling pressure has been exaggerated in the last half an hour as WPI inflation for the month of February surged to a 27-month high of 4.17 per cent. Hence, we are seeing the rate-sensitive stocks under immense pressure. Among the sectoral indices, barring Nifty IT, all other indices are painted in red with Nifty Private Bank and Nifty Bank leading the fall.   

The options data indicates that there has been a heavy call writing being witnessed in the broad range of 14,900-15,100. The 15,000-call option has seen the addition of 21.36 lakh shares in the open interest today itself while the 15,100-call option has also seen the addition of 21 lakh shares in the open interest. With the heavy addition of open interest witnessed on the call side, the PCR has dropped below 0.50 mark. Meanwhile, put unwinding has been seen between 14,900 and 15,300 put options. On the other hand, 14,800 put options have added 7.8 lakh open interest today.   

The highest net addition in open interest was seen at 14,800 put options while the 50-DMA is also placed around 14,700. Further, with PCR in an oversold region, one may expect that the index might take support in this region.   

In other news, MTAR Technologies witnessed a bumper listing as the stock surged to a high of Rs 1,154.90. However, currently, as the day progressed, it has trimmed its early gains and is now trading at Rs 1,063.85.  

Meanwhile, by locking at its upper circuit today, Nahar Poly Films is another stock which is buzzing today.