Gaining for third consecutive session Nifty closes at all time high level

The fifty stock index -- Nifty -- continued its northward journey for fifth consecutive day on Thursday and finished the excellent day of trade at an all time closing high with a gain of 78 points or 0.97%. The index was buoyed due to increased buying by investors as the recent economic reforms have instilled confidence that the country can better withstand potential rate hikes in the US. The government on Wednesday relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. On the BSE sectoral front, IT exporters that earn major part of their revenues from exports to the US firmed up post US Federal Reserve Bank's encouraging comments about the US economy. Furthermore, shares of Real estate was also on jubilant mood as the government has relaxed the foreign direct investment (FDI) norms for construction and real estate sector.

The sentiments were optimistic from early trades after Finance Minister Arun Jaitley stated that India has the potential to grow at 8-9 percent annual rate. Besides, covering-up of pending short positions by speculators on the last day of October series expiry in the derivatives segment, also buoyed market sentiments.

After a cautious opening, nifty recovered reclaiming its crucial 8,100 mark in early morning trades and while moving from strength to strength surpassed the all time previous high level in mid afternoon trades on back of sustained buying in most key heavyweights and broader indices. Finally, market ended the day’s trade with a gain of about a percentage and all time high closing at 8,169.20.

The domestic index CNX Nifty finished the July F&O series with a gain of about 257 points or three percent. Now the July F&O series has ended, many traders rolled over positions in the futures & options (F&O) segment from the October 2014 series to November 2014 series. Sectorally, capital goods, realty and pharma stocks are witnessing high rollover of positions while stocks from the technology, power and FMCG space are witnessing relatively low rolls into the November series.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 2% and reached 13.26. The 50-share CNX Nifty increased by 78.75 points or 0.97% to settle at 8,169.20. Nifty November 2014 futures closed at 8198.20 on Thursday at a premium of 29 points over spot closing of 8,169.20, while Nifty December 2014 futures ended at 8244.65 at a premium of 75.45 points over spot closing. Nifty November futures saw addition of 4.34 million (mn) units, taking the total outstanding open interest (OI) to 18.57 mn units. The near month derivatives contract will expire on November 27, 2014.

From the most active contracts, Reliance Industries November 2014 futures traded at a premium of 6.15 points at 984.15 compared with spot closing of 978.00. The number of contracts traded were 56,065.

ICICI Bank November 2014 futures traded at a premium of 7.70 points at 1612.7 compared with spot closing of 1,605.0. The number of contracts traded were 31,933.

Tata Consultancy Services November 2014 futures traded at a premium of 1.85 points at 2564.85 compared with spot closing of 2,563.00. The number of contracts traded were 26,473.

State Bank of India November 2014 futures traded at a premium of 8.35 points at 2652.25 compared with spot closing of 2,643.90. The number of contracts traded were 24,807.

Among Nifty calls, 8200 SP from the October month expiry was the most active call with an addition of 0.04 million open interests. Among Nifty puts, 8,000 SP from the November month expiry was the most active put with an addition of 1.95 million open interests. The maximum OI outstanding for Calls was at 8200 SP (2.56 mn) and that for Puts was at 8,000 SP (4.11 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8205.43 --- Pivot Point 8145.32 --- Support --- 8109.08.

The Nifty Put Call Ratio (PCR) finally stood at 1.29 for November month contract. The top five scrips with highest PCR on OI were Mcleod Russel India (2.38), Shriram Transport Finance Company (2), Bajaj-Auto (1.66), Siemens (1.42) and Jubilant Foodworks (1.42). 

Among most active underlying, Reliance Industries witnessed an addition of 4.79 million of Open Interest in the November month futures contract, followed by Infosys witnessing an addition of 0.50 million of Open Interest in the November  month contract; while ICICI Bank witnessed an addition of 1.71 million of Open Interest, State Bank of India witnessed an addition of 1.32 million of Open Interest in the November month contract and Yes Bank witnessed an addition of 2.15 million of Open Interest in the November month's future contract.