Nifty trims losses in final deals to close well above 8200

CNX Nifty ended lower on Thursday, dragged down by losses in blue chips on rising bond yields in Europe, while export-oriented stocks dropped as the rupee rose above the key 64 level on inflows ahead of disinvestments in key companies. On the global front, Asian markets ended mostly in green after range-bound trading, with the Philippine index extending gains to a one-week high before the central bank's interest rate decision, while investors awaited economic data in the region. However, European markets were trading mostly weak in early trade, as weak retail sales data out of the U.S. in the previous session led to growth worries about the world's largest economy.

Back home, the Indian equity benchmark made a negative start on absence of any positive triggers which could have taken the markets higher and sustained selling in frontline line blue-chip stocks. The risk-appetite has failed to revive as concerns over delay in passage of reform-centric legislative proposals, tepid corporate earnings and forecasts of a sub-par monsoon season have kept the investors on tenterhooks. The index traded below the neutral line for most part of the day’s trade, as investors engaged themselves in few stocks. Traders have largely overlooked encouraging April WPI data, which strengthened the case for rate cut in RBI’s upcoming monetary policy on June 2, 2015, cashed in all their profits after previous sessions’ splendid gains. Sentiments remained down-beat as global brokerage HSBC changed its stance on the foreign darling country to underweight from overweight on the expectations of corporate earnings remaining muted, monsoon turning weak and growing odds against further rate cuts. However, the frontline index managed to pare most of its losses and end the session above its psychological 8200 level with cut of just eleven points.  Traders were seen piling position in PSU, Realty and Oil & Gas stocks while selling was witnessed in IT, TECK and Consumer Durables sector.

The top gainers from the F&O segment were Oriental Bank of Commerce, Allahabad Bank and MindTree. On the other hand, the top losers were Lupin, Adani Ports and Special Economic Zone and LIC Housing Finance. In the index options segment, maximum OI continues to be seen in the 8600-8500 calls and 8000-8100 puts indicating the expected trading range. In today's session, the 8400, 8500 and 8600 Call strikes saw addition of 3.80, 7.65 and 5.04 lakh shares, respectively. On the other hand, 8300, 8200 and 8100 Put strikes saw addition of 1.29, 0.78 and 3.24 lakh shares, respectively.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.07% and reached 20.70. The 50-share CNX Nifty was down by 11.25 points or 0.14% to settle at 8,224.20.

Nifty May 2015 futures closed at 8237.80 on Thursday at a premium of 13.60 points over spot closing of 8,224.20, while Nifty June 2015 futures ended at 8,264.80 at a premium of 40.60 points over spot closing. Nifty May futures saw an addition of 0.21 million (mn) units, taking the total outstanding open interest (OI) to 14.08 million (mn) units. The near month derivatives contract will expire on May 28, 2015.

From the most active contracts, State Bank of India May 2015 futures traded at a discount of 2.25 points at 279.25 compared with spot closing of 281.50. The number of contracts traded were 28,780.

HDFC Bank May 2015 futures traded at a discount of 1.00 points at 991.50 compared with spot closing of 992.50. The number of contracts traded were 19,268.

ICICI Bank May 2015 futures traded at a premium of 1.15 points at 316.55 compared with spot closing of 315.40. The number of contracts traded were 21,888.

Reliance Industries May 2015 futures traded at a premium of 3.40 points at 880.40 compared with spot closing of 877.00. The number of contracts traded were 20,218.

Axis Bank May 2015 futures traded at a premium of 2.60 points at 557.90 compared with spot closing of 555.30. The number of contracts traded were 24,772.

Among Nifty calls, 8300 SP from the May month expiry was the most active call with a contraction of 0.22 million open interests. Among Nifty puts, 8000 SP from the May month expiry was the most active put with an addition of 0.03 million open interests. The maximum OI outstanding for Calls was at 8500 SP (5.32 mn) and that for Puts was at 8,000 SP (4.75 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8261.20--- Pivot Point 8199.25--- Support --- 8162.25.

The Nifty Put Call Ratio (PCR) finally stood at 0.95 for May month contract. The top five scrips with highest PCR on OI were Eicher Motors (1.76), Hero MotoCorp (1.54), Union Bank (1.32), Dr. Reddys Laboratories (1.17) and Allahabad Bank (1.10). 

Among most active underlying, Oriental Bank of Commerce witnessed an addition of 1.79 million of Open Interest in the May month futures contract, followed by State Bank of India witnessing an addition of 0.45 million of Open Interest in the May month contract; ICICI Bank witnessed an addition of 1.03 million of Open Interest in the May month contract, Axis Bank witnessed a contraction of 0.10 million of Open Interest in the May month contract and Adani Enterprises witnessed an addition of 0.04 million of Open Interest in the May month's future contract.