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

Extending its northward journey to fifth straight session, Indian equity benchmark Nifty ended higher with a gain of 33 points on sustained buying across the bourses amid firm global cues after hopes of an interest rate hike by the US Federal Reserve waned on the back of sluggish US jobs data. Besides, a smart rally in the oil and gas stocks and metal shares tracking a rebound in the overnight global commodity prices has also lifted the index higher. Sentiments got some support with the report that the PE investments in the first nine months of 2015 have reached $13 billion from 504 deals, and are expected to cross previous annual milestone of $14.7 billion hit in 2007. On the global front, Asian equity markets ended mostly in green, with the Japanese market surging by over one percent on bets that its central bank may further loosen monetary policy at its meeting this week. Further, European stock indices were mixed on Tuesday, with eurozone benchmarks shrugging off disappointing German data to post small gains.

Bach home, after gap up opening, Indian benchmark Nifty showed some strength in early morning trades, but the sentiments turned pessimistic in afternoon trades and index start drifting lower, however the market regained its momentum in the final hour of trade and finished the day gaining around four tens of a percent. Sentiments got a boost after Prime Minister Narendra Modi expressed the hope that Goods and Services Tax (GST) will be rolled out next year. The Bill has already been approved by the Lok Sabha and is pending in the Rajya Sabha, where the ruling NDA does not have a majority. Modi also added that the government was speeding up regulatory clearances, reducing licensing requirements in the defence sector and making tax policy more consistent. Some support also came with India's Finance Minister Arun Jaitley’s statement that the slowdown in the Chinese economy is not going to impact his country and India could become the ‘additional shoulder’ the global economy needs to stand on. However, investors remained concerned about the report that India's pivotal services industry lost some momentum in September as demand weakened despite firms cutting prices for the first time this year. The Nikkei/Markit Services Purchasing Managers' Index eased to 51.3 in September from August's 51.8 but marked its third straight month above the 50-level that separates growth from contraction. Traders were seen piling position in Consumer Durables, FMCG and Metal stocks while selling was witnessed in IT, TECK and Banking sector stocks.

The top gainers from the F&O segment were Amtek Auto, Kaveri Seed Company and Indiabulls Real Estate. On the other hand, the top losers were Rural Electrification Corporation, TV18 Broadcast and Bharat Heavy Electricals. In the index options segment, maximum OI was being seen in the 8000-8300 calls and 7500-7800 puts. In today's session, the 8300, 8400 and 8500 Call strikes saw addition of 3.05, 4.95 and 4.03 lakh shares, respectively. On the other hand, 8200, 8100 and 8000 Put strikes saw addition of 3.61, 10.45 and 4.45 lakh shares, respectively.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.92% and reached 19.30. The 50-share CNX Nifty was up by 33.6 points or 0.41% to settle at 8,152.9.

Nifty October 2015 futures closed at 8160.55 on Tuesday at a premium of 7.65 points over spot closing of 8,152.90, while Nifty November 2015 futures ended at 8197.95 at a premium of 45.05 points over spot closing. Nifty October futures saw contraction of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 20.31 million (mn) units. The near month derivatives contract will expire on October 29, 2015.  

From the most active contracts, SBI Bank October 2015 futures traded at premium of 1.15 points at 241.10 compared with spot closing of 239.95. The number of contracts traded were 25,531.

ICICI Bank October 2015 futures traded at a premium of 0.10 points at 282.90 compared with spot closing of 282.80. The number of contracts traded were 18,527.

Jindal Steel & Power October 2015 futures traded at a premium of 0.55 points at 74.20 compared with spot closing of 73.65. The number of contracts traded were 15,473.

Tata Motors October 2015 futures traded at a discount of 0.10 points at 333.15 compared with spot closing of 333.25. The number of contracts traded were 43,449. 

Axis Bank October 2015 futures traded at a premium of 2.40 points at 509.05 compared with spot closing of 506.65. The number of contracts traded were 24,416.  

Among Nifty calls, 8300 SP from the October month expiry was the most active call with an addition of 0.30 million open interests.  Among Nifty puts, 8000 SP from the October month expiry was the most active put with an addition of 0.44 million open interests. The maximum OI outstanding for Calls was at 8300 SP (4.70 mn) and that for Puts was at 7500 SP (3.82 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8190.40 --- Pivot Point 8143.45 --- Support --- 8105.95.The Nifty Put Call Ratio (PCR) finally stood at 1.19 for October month contract.  The top five scrips with highest PCR on OI were Indraprastha Gas (1.83), Bata India (1.36), Lupin (1.27), Hero MotoCorp (1.15) and Colgate-Palmolive (India) (1.14).   

Among most active underlying, Maruti Suzuki India witnessed an addition of 0.10 million of Open Interest in the October month futures contract, followed by Tata Motors witnessing a contraction of 2.71 million of Open Interest in the October month contract; Reliance Industries witnessed a contraction of 0.88 million of Open Interest in the October month contract, State Bank of India witnessed a contraction of 0.30 million of Open Interest in the October month contract and Infosys witnessed an addition of 0.30 million units of Open Interest in the October month's future contract.