Nifty gains for second consecutive session; closes above 8450

Nifty ended in green for second straight session as blue chips gained on rising risk appetite across global equities after euro zone leaders said there would be no Grexit. Some support also came with Finance Minister Arun Jaitley’s statement that tax revenues are expected to be higher this year while improving macroeconomic fundamentals and ongoing reforms make 8-10 per cent growth eminently achievable.  On global front, Asian stocks rose for a third day as Greece reached an agreement with creditors on reforms needed to secure a bailout and remain in the euro, and Chinese shares continued their rebound.  Furthermore, all the major European counterparts were trading in the green where major indices like CAC, DAX and FTSE were trading with a gain of over a percentage point.

Back home, the Indian equity benchmark made a positive start buoyed by a firm trend in other Asian markets. Some support also came with Revenue Secretary Rajiv Mehrishi’s statement that the market condition was conducive for the government’s disinvestment. Thereafter, the index kept oscillating in a narrow range near its neutral line in morning session as investors remain wary ahead of the CPI numbers due later during today and WPI data due to be unveiled tomorrow. Besides, weak IIP numbers, slowdown in the progress of monsoon and continuous selling by FIIs has dampened the sentiments.  Foreign portfolio investors (FPIs) sold shares worth a net Rs 465.27 crore on July 10, 2015. However, sentiments turned bullish in afternoon trade after eurozone leaders unanimously reached an agreement with Greece for a debt bailout package, thereby keeping the debt ridden nation as part of the European Union. Besides, rally in Chinese stocks for the third straight session post the rout last week also aided sentiment. There was some good news from the revenue collection too, as the Indirect tax revenues grew 37.5 per cent to nearly Rs 1.54 lakh crore in the first quarter of the current fiscal, powered by a robust show in excise collections. 

The top gainers from the F&O segment were Dish TV India, TVS Motor Company and Bharat Forge. On the other hand, the top losers were Arvind, Shriram Transport Finance Company and Steel Authority of India. In the index options segment, maximum OI was being seen in the 8400-8600 calls and 8200-8400 puts. In today's session, while the traders preferred to exit 8000 put, heavy buildup was seen in the 8400 put. On the other hand, traders exited from 8400 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 4.67% and reached 16.22. The 50-share CNX Nifty was up by 99.10 points or 1.19% to settle at 8,459.65. Nifty July 2015 futures closed at 8481.95 on Monday at a premium of 22.30 points over spot closing of 8,459.65, while Nifty August 2015 futures ended at 8518.95 at a primium of 59.30 points over spot closing. Nifty July futures saw addition of 1.34 million (mn) units, taking the total outstanding open interest (OI) to 19.65 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 1.25 points at 274.75 compared with spot closing of 273.50. The number of contracts traded were 25,658.

ICICI Bank July 2015 futures traded at a premium of 1.00 points at 317.50 compared with spot closing of 316.50. The number of contracts traded were 19,823.

Tata Motors July 2015 futures traded at a premium of 1.65 points at 404.00 compared with spot closing of 402.35. The number of contracts traded were 23,405.

Reliance July 2015 futures traded at a premium of 5.85 points at 1011.65 compared with spot closing of 1,005.80. The number of contracts traded were 20,320.

HDFC Bank July 2015 futures traded at a premium of 6.70 points at 1101.85 compared with spot closing of 1,095.15. The number of contracts traded were 23,485.

Among Nifty calls, 8500 SP from the July month expiry was the most active call with an addition of 0.16 million open interests.  Among Nifty puts, 8300 SP from the July month expiry was the most active put with an addition of 0.62 million open interests.  The maximum OI outstanding for Calls was at 8500 SP (4.90 mn) and that for Puts was at 8300 SP (5.51 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8502.40--- Pivot Point 8428.90--- Support --- 8386.15.

The Nifty Put Call Ratio (PCR) finally stood at 1.28 for July month contract.  The top five scrips with highest PCR on OI were Dr. Reddys Laboratories (1.59), Eicher Motors (1.29), HDFC Bank (1.23), L&T (0.99) and JSW Steel (1).

Among most active underlying, IndusInd Bank witnessed an addition of 0.49 million of Open Interest in the July month futures contract, followed by Tata Consultancy Services witnessing a contraction of 0.10 million of Open Interest in the July month contract; Yes Bank witnessed an addition of 0.19 million of Open Interest in the July month contract, State Bank of India witnessed an addition of 1.17 million of Open Interest in the July month contract and Larsen & Toubro witnessed an addition of 0.09 million units of Open Interest in the July month's future contract.