Nifty reclaims crucial 8,000 level

The fifty stock index -- Nifty -- commenced the fresh week on a positive note as blue-chips advanced on strong factory and stable inflation data, while value-buying after three consecutive weekly declines also helped. The country's factory output grew more than expected in April, reaching a two-month high, and retail inflation edged up, while wholesale prices fell at an annual rate of 2.36 percent in May, easing concern over an economy facing the worst drought since 2009.  On the global front, Asian markets closed in red, on fears Greece could tumble out of the eurozone after talks with creditors collapsed, leaving the country on the verge of a default. Investors also remained watchful of the FOMC meeting, which is scheduled this week. Further, European counters were trading in red terrain in early deals on Monday led by Greece.

Back home, after getting a positive start, CNX Nifty slipped into red tracking weak trade in Asian markets after last-ditch talks between Greece and its official creditors ended with no agreement. Thereafter immediately, the index recovered from day’s low and entered into positive zone on the back of above-average monsoon rain, which may improve the odds for further monetary policy easing. Sentiment was buoyed as the wholesale price index (WPI) based inflation for May 2015 contracted 2.36%, the seventh straight month of decline, as compared to a contraction of 2.65% in the previous month with food articles inflation quoting at 3.8% against 5.73% last month. Although weak opening by European market, erased all the early gains and the index took an ugly turn yet again in mid afternoon trade as Investors remained cautious ahead of the FOMC meet which is a key economic event and is likely to decide the timeframe for the Fed rate hike. Besides, continues selling by foreign investors, also weigh on sentiment. The foreign portfolio investors (FPIs) sold shares worth a net Rs 670.96 crore on June 12, 2015 as per provisional data released by the stock exchanges. Thereafter, the index showed some courage and touched intraday high in late afternoon session, but some final hour profit booking followed by mild short covering ensured that the key gauge extend the consolidation period for second straight session. Traders were seen piling position in Auto, Oil & Gas and FMCG stocks while selling was witnessed in Consumer Durables, Power and Bankex stocks.

The top gainers from the F&O segment were Jaiprakash Power Ventures, Jaiprakash Associates and Adani Enterprises. On the other hand, the top losers were Hexaware Technologies, Indiabulls Housing Finance and Arvind. In the index options segment, maximum OI was being seen in the 8500-8300 calls and 8000-7800 puts. In today's session, the 8000, 7900 and 7700 Put strikes saw addition of 3.83, 1.86 and 4.41 lakh shares, respectively. On the other hand, 8100, 8200 and 8300 Call strikes saw a contraction of 2.19, 2.16 and 2.58 lakh shares, respectively on the back of profit booking.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.27% and reached 17.52. The 50-share CNX Nifty was up by 31.00 points or 0.39% to settle at 8,013.90.  Nifty June 2015 futures closed at 8009.20 on Monday at a discount of 4.70 points over spot closing of 8,013.90, while Nifty July 2015 futures ended at 8,040.45 at a premium of 26.55 points over spot closing. Nifty June futures saw contraction of 0.76 million (mn) units, taking the total outstanding open interest (OI) to 15.89 million (mn) units. The near month derivatives contract will expire on June 25, 2015.

From the most active contracts, State Bank of India June 2015 futures traded at a premium of 1.25 points at 250.90 compared with spot closing of 249.65. The number of contracts traded were 22,843.

ICICI Bank June 2015 futures traded at a premium of 0.65 points at 299.15 compared with spot closing of 298.50. The number of contracts traded were 20,949.

HDFC Bank June 2015 futures traded at a premium of 4.00 points at 1004.00 compared with spot closing of 1000.00. The number of contracts traded were 19,815.

Tata Motors June 2015 futures traded at a premium of 1.80 points at 427.30 compared with spot closing of 425.50. The number of contracts traded were 16,071.

Reliance Industries June 2015 futures traded at a premium of 1.35 points at 902.80 compared with spot closing of 901.45. The number of contracts traded were 25,215.

Among Nifty calls, 8100 SP from the June month expiry was the most active call with a contraction of 0.21 million open interests. Among Nifty puts, 7900 SP from the June month expiry was the most active put with an addition of 0.18 million open interests. The maximum OI outstanding for Calls was at 8500 SP (4.88 mn) and that for Puts was at 7,800 SP (5.72 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8066.12 --- Pivot Point 8005.48 --- Support --- 7953.27.

The Nifty Put Call Ratio (PCR) finally stood at 0.84 for June month contract. The top five scrips with highest PCR on OI were UBL (1.26), Bajaj-Auto (1.07), JSW Steel (1.03), BEL (0.99) and BHEL (0.97). 

Among most active underlying, State Bank of India witnessed an addition of 2.89 million of Open Interest in the June month futures contract, followed by Reliance Industries witnessing an addition of 0.43 million of Open Interest in the June month contract; ICICI Bank witnessed an addition of 2.31 million of Open Interest in the June month contract, Sun Pharmaceuticals Industries witnessed a contraction of 0.13 million of Open Interest in the June month contract and Axis Bank witnessed an addition of 0.55 million of Open Interest in the June month's future contract.