Final hour recovery helps Nifty to reclaim 8,200 mark

The fifty stock index -- Nifty -- witnessed a jubilant run in the last leg of trade, after languishing in the red for most of the day and ended the day’s trade near its intraday high recapturing its crucial 8,200 mark. Sentiments took U-turn in the final hour of trade and bulls came back in action led by upmove in Capital Goods, Banking, Oil & Gas and Auto stocks, while value buying in fundamentally strong stocks too supported the turnaround.  Global cues were mostly positive as European shares extended the previous session's rally on Friday, tracking strong gains on Wall Street and in Asia, as some US data releases eased concerns about the pace of recovery in the world's biggest economy.

Back home, investor also got some support with Finance Minister Arun Jaitley's statement that economic growth could top 7.5 percent in the current fiscal and macroeconomic indicators are positive with declining inflation and twin deficits under control. He also said that even when globally the economic situation is not that good, India's industrial and manufacturing output are showing improvement. However some market participants remained caution over the upcoming quarterly results which included earnings figures of bluechips. Also, there was some concern with the RBI releasing a report on the financial performance of non-government non-financial companies stating that Indian corporates as a whole saw their net profits fall 9.5 per cent in the first quarter of this financial year, though it was still better than the 12.5 per cent decline seen in the previous quarter. Meanwhile, Auto stocks remained on buyer's radar on hopes of higher demand during the festive season with most of them set to launch new models. Shares of public sector oil marketing companies edged higher after announcement of hike in diesel price effective form October 16, 2015. On the other hand, Telecom stocks such as Bharti Airtel and Idea Cellular eased after regulator TRAI directed telecom operators to pay consumers Re 1 as compensation for every call drop experienced from January 2016 onwards.

The top gainers from the F&O segment were NMDC, Crompton Greaves and Reliance Communications. On the other hand, the top losers were DLF, Shriram Transport Finance Company and Unitech. 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 8100 put, heavy buildup was seen in the 8400 put. On the other hand, traders exited from 8000 Call, while 8200 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 5.21% and reached 16.12. The 50-share CNX Nifty was up by 58.65 points or 0.72% to settle at 8,238.15.

Nifty October 2015 futures closed at 8259.45 on Friday at a premium of 21.30 points over spot closing of 8,238.15, while Nifty November 2015 futures ended at 8298.10 at a premium of 59.95 points over spot closing. Nifty October futures saw addition of 0.20 million (mn) units, taking the total outstanding open interest (OI) to 20.32 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 discount of 0.80 points at 256.00 compared with spot closing of 256.80. The number of contracts traded were 34,852. 

ICICI Bank October 2015 futures traded at a premium of 1.70 points at 291.15 compared with spot closing of 289.45. The number of contracts traded were 20,860.    

Tata Motors October 2015 futures traded at a discount of 2.10 points at 384.65 compared with spot closing of 386.75. The number of contracts traded were 45,575.   

Axis Bank October 2015 futures traded at a premium of 1.65 points at 506.65 compared with spot closing of 505.00. The number of contracts traded were 25,425.  

Reliance October 2015 futures traded at a discount of 0.05 points at 914.75 compared with spot closing of 914.80 . The number of contracts traded were 26,360.  

Among Nifty calls, 8200 SP from the October month expiry was the most active call with a contraction of 0.31 million open interests.  Among Nifty puts, 8100 SP from the October month expiry was the most active put with an addition of 0.28 million open interests. The maximum OI outstanding for Calls was at 8300 SP (5.39 mn) and that for Puts was at 8000 SP (5.58 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8273.82 --- Pivot Point 8210.73 --- Support --- 8175.07.

The Nifty Put Call Ratio (PCR) finally stood at 1.27 for October month contract.  The top five scrips with highest PCR on OI were Lupin (1.58), Tata Motors (1.40), ZEEL (1.17), ONGC (1.12) and Tata Steel (1.11).   

Among most active underlying, Maruti Suzuki India witnessed a contraction of 0.19 million of Open Interest in the October month futures contract, followed by Reliance Industries witnessing a contraction of 0.17 million of Open Interest in the October month contract; Tata Motors witnessed a contraction of 1.12 million of Open Interest in the October month contract, State Bank of India witnessed an addition of 0.65 million of Open Interest in the October month contract and Infosys witnessed a contraction of 0.44 million units of Open Interest in the October month's future contract.