Nifty shows spectacular performance, surges past 7950

Thursday proved a spectacular day of trade for the Nifty with the benchmark touching the level last seen on September 18. The mood looked jubilant since morning when the overnight rally in the US markets and follow up by the regional peers gave a solid cue for the Indian markets to rebound from their last few session’s slump. Nifty after a firm start never looked dithering from its path and strengthened further towards the closing, comfortably reclaiming the 7950 level. The early gains were induced by not only the global factor but also by the Paris-based think tank, the Organisation for Economic Cooperation and Development (OECD) saying that the Indian economy is projected to see a pickup in growth momentum while most of the other major economies are anticipated to see stable prospects.

Sectorally, Banking, Finance, Media and metal were top gainers along with Infra and realty which surged on reports that the urban development ministry aims to take up more urban renewal and smart governance projects on public-private partnership (PPP) mode and will attract private players to help develop Smart Cities.

Among the most active F&O securities, BHEL was up by 8.16%, Hindalco gained 5.51%, SBI was up by 2.73% and L&T inched higher by 2.72%, on the other hand Tech Mahindra lost 2.55%.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 6.78% and reached 13.15. The 50-share CNX Nifty surged by 117.85 points or 1.50% to settle at 7,960.55. Nifty October 2014 futures closed at 7990.35 on Thursday at a premium of 29.80 points over spot closing of 7,960.55, while Nifty November 2014 futures ended at 8039.40 at a premium of 78.85 points over spot closing. Nifty October futures saw addition of 0.10 million (mn) units, taking the total outstanding open interest (OI) to 16.41 mn units. The near month derivatives contract will expire on October 30, 2014.

From the most active contracts, SBI October 2014 futures traded at a premium of 11.60 points at 2491.15 compared with spot closing of 2,479.55. The number of contracts traded were 31,591.

Infy October 2014 futures traded at a discount of 4.30 points at 3642.50 compared with spot closing of 3,646.80. The number of contracts traded were 23,067.

Reliance Industries October 2014 futures traded at a premium of 3.85 points at 958.50 compared with spot closing of 954.65. The number of contracts traded were 18,609.

ICICI Bank October 2014 futures traded at a premium of 3.65 points at 1492.05 compared with spot closing of 1,488.40. The number of contracts traded were 18,057.

Tata Steel October 2014 futures traded at a premium of 1.75 points at 469.30 compared with spot closing of 467.55. The number of contracts traded were 15,137.

Among Nifty calls, 8000 SP from the October month expiry was the most active call with an addition of 1.05 million open interests. Among Nifty puts, 7,900 SP from the October month expiry was the most active put with an addition of 1.15 million open interests. The maximum OI outstanding for Calls was at 8200 SP (6.09 mn) and that for Puts was at 7,800 SP (6.32 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7993.10--- Pivot Point 7939.80--- Support --- 7907.25.

The Nifty Put Call Ratio (PCR) finally stood at 1.03 for October month contract. The top five scrips with highest PCR on OI were Bajaj-Auto (1.30), Kotak Bank (0.87), Hindalco (0.85), Hindzinc (0.80) and AuroPharma (0.78). 

Among most active underlying, Infosys witnessed an addition of 0.19 million of Open Interest in the October month futures contract, followed by State Bank of India witnessing a contraction of 0.03 million of Open Interest in the October  month contract; while Tata Steel witnessed a contraction of 0.84 million of Open Interest, ICICI Bank witnessed a contraction of 0.68 million of Open Interest in the October month contract and BHEL witnessed a contraction of 1.01 million of Open Interest in the October month's future contract.