A global relief rally supported by reforms and stimulus measures by the Chinese government helped the Indian equity index nifty to end the session with the massive gain 130 points. Sentiments got some support with Finance minister Arun Jaitley’s statement that it was important to stay on the path of reform and build momentum to achieve higher economic growth and that he still wants to implement a new goods and services tax (GST) by next April 1, though he also said that there will be no extension of the monsoon session and the government has asked the president to prorogue the session. On the global front, Asian stocks ended the day on a high, with Japan’s Nikkei 225 Stock Average rising to its highest level since October 2008 as the rally was triggered by a mix of investors betting that a recent sell-off in stocks was overdone, and the promise of further tax cuts. Some support also came on expectations that China would announce more stimulus to support the economy after the August trade data print came in weak. Further, European markets were also trading on a strong note in early trade with Germany's DAX surging nearly 2%, Britain's FTSE 100 advancing 1.9% and French CAC 40 index gaining 2.5%.
Back home, the benchmark got off to a positive start in the morning trade as investors were largely influenced by the supportive leads from Asian markets. Sentiments remained up-beat with Chief Economic Advisor Arvind Subramanian’s statement that Indian economy will grow at the highest rate and also remain an attractive investment destination. Prime Minister Narendra Modi’s meeting with representatives of corporate India on weathering the global economic turbulance also helped the market sentiment. Second half of the session saw the key gauges capitalize on the momentum further and spurt to session’s highest levels in afternoon trade as sentiments got boost after Finance Minister Arun Jaitley promised investors to resolve their tax concerns and reassured an increasingly skeptical business community that Asia’s third-largest economy can withstand global market turbulence and China’s slowdown. Jewellery shares glittered after the Cabinet approved gold bond and gold monetisation schemes to cut the metal's demand in physical form and stake out idle gold lying with households and other entities, while Telecom stocks surged after the Union Cabinet cleared spectrum trading guidelines under which telecom operators will be able to sell radiowaves to other service providers, a move that will help address the problem of spectrum shortage. However, a mild profit booking in dying hour of trade ensured that the key index shut shops off the intraday highs. Finally the NSE’s 50-share broadly followed index Nifty, amassed triple digit gains to settle above the crucial 7800 mark.
The top gainers from the F&O segment were Amtek Auto, Reliance Communications and Mcleod Russel India. On the other hand, the top losers were Sun TV Network, Aurobindo Pharma and Just Dial. In the index options segment, maximum OI was being seen in the 8200-8500 calls and 7500-7800 puts. In today's session, while the traders preferred to exit 8000 put, heavy buildup was seen in the 7600 put. On the other hand, traders exited from 7700 Call, while 8100 call witnessed considerable OI addition.
The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.08% and reached 24.30. The 50-share CNX Nifty was up by 130.35 points or 1.7% to settle at 7818.60.
Nifty September 2015 futures closed at 7826.70 on Wednesday at a premium of 8.10 points over spot closing of 7,818.60, while Nifty October 2015 futures ended at 7862.55 at a premium of 43.95 points over spot closing. Nifty September futures saw contraction of 1.49 million (mn) units, taking the total outstanding open interest (OI) to 22.25 million (mn) units. The near month derivatives contract will expire on September 24, 2015.
From the most active contracts, SBI September 2015 futures traded at premium of 0.45 points at 231.65 compared with spot closing of 231.20. The number of contracts traded were 29,748.
ICICI Bank September 2015 futures traded at a premium of 1.40 points at 264.70 compared with spot closing of 263.30. The number of contracts traded were 28,515.
Tata Motors September 2015 futures traded at a discount of 0.70 points at 344.30 compared with spot closing of 345.00. The number of contracts traded were 28,923.
Tata Steel September 2015 futures traded at a premium of 1.30 points at 240.20 compared with spot closing of 238.90. The number of contracts traded were 20,408.
Reliance September 2015 futures traded at a premium of 4.65 points at 874.75 compared with spot closing of 870.10. The number of contracts traded were 30,048.
Among Nifty calls, 8000 SP from the September month expiry was the most active call with an addition of 0.43 million open interests. Among Nifty puts, 7700 SP from the September month expiry was the most active put with an addition of 0.67 million open interests. The maximum OI outstanding for Calls was at 8500 SP (4.68 mn) and that for Puts was at 7500 SP (4.82 mn). The respective Support and Resistance levels of Nifty are: Resistance 7854.92--- Pivot Point 7809.73--- Support --- 7773.42.
The Nifty Put Call Ratio (PCR) finally stood at 1.05 for September month contract. The top five scrips with highest PCR on OI were Indraprastha Gas (1.60), Ultratech Cement (1.17), Bajaj Finance (1.17), JSW Steel (1.04) and Wipro (1.03).
Among most active underlying, Reliance Industries witnessed a contraction of 0.43 million of Open Interest in the September month futures contract, followed by State Bank of India witnessing an addition of 0.83 million of Open Interest in the September month contract; Maruti Suzuki India witnessed an addition of 0.16 million of Open Interest in the September month contract, Axis Bank witnessed an additional of 0.62 million of Open Interest in the September month contract and ICICI Bank witnessed an addition of 0.66 million units of Open Interest in the September month's future contract.
