Nifty snaps two days losing streak; regains 8,350 mark

The fifty stock index -- Nifty -- rose on Tuesday, snapping a two-day losing streak, as investors veered around to the view that Greece does not pose a systemic risk to the global financial system. The sentiments got some support after a top official at US embassy stated that India is one of the fastest growing FDI sources for the United States. On global front, Asian benchmarks ended in the green with the Shanghai Composite rallying 5.5% and Hang Seng rising 1%. Investors seemed to believe that Greece's debt crisis would only have a relatively small impact across emerging markets, even if Greeks vote against the EU's bailout proposals in Sunday's referendum that could decide the country's fate in the euro zone. However, European stock markets fell for a second day in a row as Greece looks set to miss a 1.6 billion euro (£1.1 billion) payment today, moving the country a step closer to leaving the euro.

Back home, after getting a cautious start, nifty showed some strength in morning trades on value-buying by investors in select blue-chips and taking cues from Asian counterparts. Sentiments remained buoyant with NITI Aayog Vice Chairman, Arvind Panagariya’s statement that India’s growth rate is expected to accelerate to 8 per cent in the current financial year and the economy will surpass $3 trillion mark in less than five years. Market, for most of the session, see-saw around the neutral line as investors remained sideways in the absence of any significant trigger at domestic front. Investors remained concerned with Finance Secretary Rajiv Mehrishi’s statement that the economic crisis in Greece may trigger capital outflows from India and the government is consulting the RBI to deal with the situation. Foreign institutional investors (FIIs) sold Indian shares worth Rs 711 crore on June 29, 2015.  However, the market regained momentum in the final hour of trading after reports that Greece decided to consider the latest European Union proposal. The hope of solution to Greece's debt issue before its deadline ends aided sentiment. Besides, a sharp rebound in the China’s Shanghai Composite after a steep fall of 3.3% in the yesterday’s session has also lifted the mood of the investors. Traders were seen piling position in FMCG, Consumer Durables and Metal stocks while selling was witnessed in IT, Infrastructure and Teck stocks.

The top gainers from the F&O segment were UBL, Tata Communications and Jain Irrigation Systems. On the other hand, the top losers were Voltas, JSW Energy and Canara Bank. In the index options segment, maximum OI was being seen in the 8600-8400 calls and 8000-7800 puts. In today's session, while the traders preferred to exit 7900 put, heavy buildup was seen in the 8000 put. On the other hand, traders exited from 8100 Call, while 8500 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 2.14% and reached 16.92. The 50-share CNX Nifty was up by 50.10 points or 0.60% to settle at 8,368.50. Nifty July 2015 futures closed at 8377.80 on Tuesday at a premium of 9.30 points over spot closing of 8,368.50, while Nifty August 2015 futures ended at 8410.80 at a primium of 42.30 points over spot closing. Nifty July futures saw addition of 1.12 million (mn) units, taking the total outstanding open interest (OI) to 16.32 million (mn) units. The near month derivatives contract will expire on July 30, 2015.

From the most active contracts, State Bank of India July 2015 futures traded at premium of 0.90 points at 263.90 compared with spot closing of 263.00. The number of contracts traded were 20,563.

ICICI Bank July 2015 futures traded at a premium of 1.60 points at 309.60 compared with spot closing of 308.00. The number of contracts traded were 20,385.

Reliance Industries July 2015 futures traded at a premium of 6.45 points at 1005.45 compared with spot closing of 999.00. The number of contracts traded were 27,179.

HDFC Bank July 2015 futures traded at a discount of 1.65 points at 1064.25 compared with spot closing of 1065.90. The number of contracts traded were 17,488.

Sunpharma July 2015 futures traded at a premium of 2.50 points at 877.90 compared with spot closing of 875.40. The number of contracts traded were 15,891.

Among Nifty calls, 8500 SP from the July month expiry was the most active call with an addition of 0.38 million open interests.  Among Nifty puts, 8200 SP from the July month expiry was the most active put with an addition of 0.17 million open interests.  The maximum OI outstanding for Calls was at 8500 SP (3.48 mn) and that for Puts was at 7900 SP (5.72 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8398.02 --- Pivot Point 8348.48 --- Support --- 8318.97.

The Nifty Put Call Ratio (PCR) finally stood at 1.39 for July month contract.  The top five scrips with highest PCR on OI were Divis Lab (1.36), Asian Paint (1.30), ACC (1.28), Just Dial (1.24) and Maruti Suzuki (1.05).

Among most active underlying, Reliance Industries witnessed an addition of 0.84 million of Open Interest in the July month futures contract, followed by State Bank of India witnessing a contraction of 0.41 million of Open Interest in the July month contract; ICICI Bank witnessed an addition of 1.91 million of Open Interest in the Julymonth contract, Tech Mahindra witnessed an addition of 1.25 million of Open Interest in the July month contract and Maruti Suzuki witnessed an addition of 0.05 units of Open Interest in the July month's future contract.