Nifty snaps three days losing streak; ends above 8,150 mark

The Nifty snapped a 3-day losing streak on Thursday on the back of value buying in blue-chips led by auto, PSU and metal amid firm global trend. Investor sentiments were aided by the strength in rupee, which moved higher on sustained dollar selling by banks and exporters amid weak dollar overseas. Automobile shares were the star performers as investors anticipate the benign interest rate scenario coupled with falling fuel prices and new launches would help revive the sluggish automobile sales over the next couple of months. On the global front, Asian markets ended in green on Thursday as weak US retail sales data released on Wednesday strengthened expectations that Federal Reserve will delay hiking interest rates. European counters have made a strong start, with CAC, DAX and FTSE were trading with a gain of over half a percent in early deals.

Back home, the benchmark got off to a rollicking opening as investors were largely influenced by the supportive leads from Asian markets. Sentiments remained up-beat with government measures to control inflation, as the Finance Minister at an inter-ministerial group meeting, in view of spiking pulses prices said that the government has decided to invoke the Rs 500-crore Price Stabilisation Fund that will be used to pay for transportation, handling, milling and processing -- aimed at reducing the cost of imported pulses. Government will also import another 2,000 tonne of pulses as part of its efforts to bring down prices. Furthermore, in a relief to stressed highway builders, the government has approved one-time financial assistance for incomplete and languishing national highway (NH) projects. However, the key index oscillated in an extremely tight range through the session as market participants remained on the sidelines lacking any significant cues ahead of the trade deficit data scheduled for release later in the day. India's exports contracting for the ninth month in a row had plunged by 20.66 per cent in August to $21.26 billion, widening the trade deficit. Except for IT index which was marginally down all other sectoral indices ended higher led by Media followed by Auto among others. Eventually, Nifty ended the session above its crucial 8,150 mark with a gain of over half a percent.

The top gainers from the F&O segment were Adani Enterprises, Zee Entertainment Enterprises and Tata Motors. On the other hand, the top losers were Kaveri Seed Company, Hindustan Zinc and United Breweries. In the index options segment, maximum OI was being seen in the 8200-8500 calls and 7800-8100 puts. In today's session, while the traders preferred to exit 7900 put, heavy buildup was seen in the 8800 put. On the other hand, traders exited from 8100 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 3.10% and reached 17.17. The 50-share CNX Nifty was up by 71.60 points or 0.88% to settle at 8,179.50. Nifty October 2015 futures closed at 8187.00 on Thursday at a premium of 7.50 points over spot closing of 8,179.50, while Nifty November 2015 futures ended at 8227.85 at a premium of 48.35 points over spot closing. Nifty October futures saw addition of 0.33 million (mn) units, taking the total outstanding open interest (OI) to 20.12 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 0.50 points at 249.55 compared with spot closing of 249.05. The number of contracts traded were 26,659. 

Tata Motors October 2015 futures traded at a discount of 1.10 points at 378.90 compared with spot closing of 380.00. The number of contracts traded were 53,420.   

Axis Bank October 2015 futures traded at a discount of 0.05 points at 499.65 compared with spot closing of 499.70. The number of contracts traded were 18,713.   

Tata Steel October 2015 futures traded at a premium of 0.40 points at 256.05 compared with spot closing of 255.65. The number of contracts traded were 19,587.  

Infosys October 2015 futures traded at a discount of 6.95 points at 1089.95 compared with spot closing of 1,096.90. The number of contracts traded were 17,204.  

Among Nifty calls, 8200 SP from the October month expiry was the most active call with an addition of 0.23 million open interests.  Among Nifty puts, 8100 SP from the October month expiry was the most active put with an addition of 0.76 million open interests. The maximum OI outstanding for Calls was at 8200 SP (5.46 mn) and that for Puts was at 8000 SP (5.98 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8203.43 --- Pivot Point 8166.62 --- Support --- 8142.68.

The Nifty Put Call Ratio (PCR) finally stood at 1.25 for October month contract.  The top five scrips with highest PCR on OI were Lupin (1.74), Tata Motors (1.34), Tata Steel (1.19), HDFC (1.08) and Voltas (1.03).   

Among most active underlying, Tata Motors witnessed an addition of 3.56 million of Open Interest in the October month futures contract, followed by Zee Entertainment Enterprises witnessing an addition of 0.86 million of Open Interest in the October month contract; Maruti Suzuki India witnessed a contraction of 0.07 million of Open Interest in the October month contract, Infosys witnessed an addition of 0.05 million of Open Interest in the October month contract and Tata Consultancy Services witnessed an addition of 0.42 million units of Open Interest in the October month's future contract.