Nifty extends gain for fifth consecutive session; closes above 8150 level

The fifty stock index -- Nifty -- continued its northward journey for fifth consecutive day on Thursday and finished the excellent day of trade with an outstanding gain of 83 points. The sentiments were on optimistic side from the early trade with the report that finance Minister Arun Jaitley has approved the formation of two separate committees for facilitating implementation of a nationwide Goods and Services Tax (GST) from April 1, 2016.  On the global front, Chinese stocks tumbled while other global stock markets were also lower on Thursday after the Federal Reserve cuts its forecast for U.S. economic growth, a move that could delay Fed rate hikes but also suggests reduced American demand for Asia's exports. Besides, lack of progress in talks between Greece and its international creditors is also on the minds of investors.

Back home, the index got off to a boisterous opening on across-the-board buying by funds and retail investors as the Federal Reserve kept the interest rates steady at zero and indicated it will raise interest rates gradually. Besides, the advancement of Monsoons and favorable macroeconomic parameters coupled with a strengthened rupee further lifted the sentiments of the investors. Some support also came with the report that the government has approved 16 proposals of Foreign Direct Investment (FDI), including those of Torrent Pharmaceuticals and Star India, amounting to Rs 6,750.86 crore. Further, the second half of trade brought some more cheer to the market and it touched its intraday highs as sentiment got a boost with Finance Minister Arun Jaitley assurance to the global investors that efforts are being made to allay their concerns on expediting reform process, tax regime and policy stability by the Narendra Modi government. However, market participants remained concerned about continues foreign outflows with overseas FIIs selling shares worth $1.3 billion in May and June. Eventually, Nifty finished the session near its intraday high and recaptured its crucial 8,150 mark with a gain of 83 points supported by index heavyweights viz, Reliance Industries, Lupin, BPCL and ONGC.

The top gainers from the F&O segment were Indian Oil Corporation, Engineers India and Reliance Industries. On the other hand, the top losers were Amtek Auto, Adani Power and Dish TV India. In the index options segment, maximum OI was being seen in the 8400-8200 calls and 8100-7900 puts. In today's session, while the traders preferred to exit 8300 put, heavy buildup was seen in the 8100 put. On the other hand, traders exited from 8500 Call, while 8300 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 4.26% and reached 16.01. The 50-share CNX Nifty was up by 83.05 points or 1.03% to settle at 8,174.60. Nifty June 2015 futures closed at 8157.55 on Thursday at a discount of 17.05 points over spot closing of 8,174.60, while Nifty July 2015 futures ended at 8,177.55 at a premium of 2.95 points over spot closing. Nifty June futures saw an addition of 0.22 million (mn) units, taking the total outstanding open interest (OI) to 15.87 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 discount of 0.20 points at 257.95 compared with spot closing of 258.15. The number of contracts traded were 24,086.

ICICI Bank June 2015 futures traded at a premium of 0.45 points at 303.50 compared with spot closing of 303.05. The number of contracts traded were 16,720.

HDFC Bank June 2015 futures traded at a discount of 1.95 points at 1016.85 compared with spot closing of 1018.80. The number of contracts traded were 28,075.

Reliance Industries June 2015 futures traded at a discount of 1.95 points at 978.10 compared with spot closing of 980.05. The number of contracts traded were 1,02,209.

Tata Motors June 2015 futures traded at a premium of 1.15 points at 444.65 compared with spot closing of 443.50. The number of contracts traded were 26,714.

Among Nifty calls, 8200 SP from the June month expiry was the most active call with a contraction of 0.30 million open interests. Among Nifty puts, 8100 SP from the June month expiry was the most active put with an addition of 1.47 million open interests. The maximum OI outstanding for Calls was at 8300 SP (5.13 mn) and that for Puts was at 8000 SP (6.33 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8207.07--- Pivot Point 8154.43--- Support --- 8121.97.

The Nifty Put Call Ratio (PCR) finally stood at 0.94 for June month contract. The top five scrips with highest PCR on OI were Bajaj-Auto (1.37), Maruti Suzuki (1.32), JSW Steel (1.32), ZEEL (1.32) and Eicher Motors (1.30). 

Among most active underlying, Reliance Industries witnessed a contraction of 0.81 million of Open Interest in the June month futures contract, followed by State Bank of India witnessing a contraction of 2.37 million of Open Interest in the June month contract; Tata Motors witnessed a contraction of 0.97 million of Open Interest in the June month contract, ICICI Bank witnessed a contraction of 1.60 million of Open Interest in the June month contract and Dish TV India witnessed an addition of 3.18 million of Open Interest in the June month's future contract.