Nifty reclaims its crucial 8,200 level

Nifty ended the session on a firm note on the back of a broad based rally among the bluechip companies amid a strong rupee. On the global front, Asian markets closed mostly in green on Friday, as investors bet the U.S. Federal Reserve will not raise interest rates too soon, though anxiety over how Greece's debt crisis will unfold dampens risk appetite. Further, European stocks climbed in early trade, as a rally on Wall Street gave markets some respite from Greece's debt negotiations.

Back home, after gap up opening, nifty showed some strength in early morning trades however, it failed to breach the 55-point range for most part of the day, ending the session above its crucial 8,200 mark with a gain of over half a percentage point. The sentiments remained buoyant with Finance Minister Arun Jaitley’s  statement that economic reforms in the legislative pipeline can push India's growth rate above the 7 to 7.5% range. Finance Minister has also assured global investors that the Narendra Modi government is making efforts to allay their concerns over expediting reforms, the tax regime and policy stability. The investors remained optimistic with above-normal monsoons, positive macroeconomic numbers coupled with a dovish stance by the Fed bolstered the rally. Also, a modest hike in the Minimum Support Price (MSP) for the Kharif crops by the Government in order to contain inflation proved to be a key driver for the markets as investors anticipate a further rate cut by the RBI in the near term. However, caution prevailed over continued selling by foreign funds on domestic bourses. The Foreign portfolio investors (FPIs) sold shares worth a net Rs 784.73 crore on June 18, 2015. Traders were seen piling position in Oil & Gas, Banking and FMCG stocks, while selling was being witnessed in Realty, Power and Consumer Durables sector stocks.

The top gainers from the F&O segment were Sun TV Network, Mahindra & Mahindra Financial Services and Amtek Auto. On the other hand, the top losers were Dish TV India, Housing Development and Infrastructure and Tata Motors. 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 7900 put, heavy buildup was seen in the 8200 put. On the other hand, traders exited from 8300 Call, while 8400 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 5.81% and reached 15.08. The 50-share CNX Nifty was up by 50.35 points or 0.62% to settle at 8,224.95. Nifty June 2015 futures closed at 8237.60 on Friday at a premium of 12.65 points over spot closing of 8,224.95, while Nifty July 2015 futures ended at 8,258.40 at a premium of 33.45 points over spot closing.

Nifty June futures saw contraction of 0.85 million (mn) units, taking the total outstanding open interest (OI) to 15.01 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 0.35 points at 260.65 compared with spot closing of 260.30. The number of contracts traded were 23,963.

HDFC Bank June 2015 futures traded at a discount of 2.35 points at 1029.80 compared with spot closing of 1032.15. The number of contracts traded were 25,067.

Reliance Industries June 2015 futures traded at a premium of 0.35 points at 997.50 compared with spot closing of 997.15. The number of contracts traded were 75,090.

Tata Motors June 2015 futures traded at a discount of 10.15 points at 433.55 compared with spot closing of 443.70. The number of contracts traded were 20,063.

Axis Bank June 2015 futures traded at a discount of 1.00 points at 553.05 compared with spot closing of 554.05. The number of contracts traded were 22,040.

Among Nifty calls, 8500 SP from the June month expiry was the most active call with an addition of 0.08 million open interests.  Among Nifty puts, 8000 SP from the June month expiry was the most active put with an addition of 0.30 million open interests.  The maximum OI outstanding for Calls was at 8500 SP (4.82 mn) and that for Puts was at 8000 SP (6.63 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8251.95--- Pivot Point 8223.80--- Support --- 8196.80.

The Nifty Put Call Ratio (PCR) finally stood at 1.06 for June month contract.  The top five scrips with highest PCR on OI were JSW Steel (1.54), Maruti Suzuki (1.49), Bajaj-Auto (1.41), M&M (1.23) and United Breweries (1.19). 

Among most active underlying, Reliance Industries witnessed a contraction of 2.69 million of Open Interest in the June month futures contract, followed by State Bank of India witnessing a contraction of 3.69 million of Open Interest in the June month contract; Dish TV witnessed an addition of 1.10 million of Open Interest in the June month contract, Maruti Suzuki witnessed a contraction of 0.04 million of Open Interest in the June month contract and Eicher Motors witnessed an addition of 5,250 units of Open Interest in the June month's future contract.