Nifty snaps three-day losing streak; ends above 7,000 level

The fifty stock index -- Nifty ended higher on the Friday, on account of buying by fund and retail investors in the bluechips counters, amid firm global cues. Sentiment got boost after the Economic Survey has said that the government will likely meet its FY16 fiscal deficit target of 3.9 percent, while at the same time it also indicated that India’s long run potential GDP growth is substantial, about 8 to 10 percent. On the global front, Asian markets ended higher as China's central bank chief said Beijing still has enough monetary firepower to keep the world's second-largest economy on track as G20 ministers gathered in Shanghai. European markets were trading higher in early trade, with energy shares spearheading the move higher as oil prices gained.

Back home, after getting a gap up start, Indian equity benchmark nifty slip into lower level in late morning trade on account of mild profit booking in frontline blue-chip stocks. Thereafter, the index traded in tight range for the most part of morning trade, but some lower level buying in noon trade, put the index once again in track. Sentiment got some support after the Economic Survey revised upward India’s GDP growth range to 7 to 7.75 per cent for 2015-16 against earlier projected growth rate of 7 to 7.5 per cent. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 1466 crore on February 25, 2016. Finally nifty ended the session with gain of around 60 points. The top gainers from the F&O segment were Dewan Housing Finance Corporation, Indraprastha Gas and Aurobindo Pharma. On the other hand, the top losers were PC Jeweller, Tata Elxsi and Union Bank of India. In the index options segment, maximum OI was being seen in the 7000-8000 calls and 6500-7000 puts. In today's session, while the traders preferred to exit 7900 put, heavy buildup was seen in the 7000 put. On the other hand, traders exited from 9000 Call, while 7500 call witnessed considerable OI addition.  

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 3.87% and reached 21.86. The 50-share Nifty was up by 59.15 points or 0.85% to settle at 7,029.75.   

Nifty March 2016 futures closed 7055.15 on Friday at a premium of 25.40 points over spot closing of 7,029.75, while Nifty April 2016 futures ended at 7084.10 at a premium of 54.35 points over spot closing. Nifty March futures saw contraction of 0.16 million (mn) units, taking the total outstanding open interest (OI) to 18.50 million (mn) units. The near month derivatives contract will expire on March 31, 2016.                    

From the most active contracts, SBI March 2016 futures traded at a discount of 0.45 points at 156.45 compared with spot closing of 156.90. The number of contracts traded were 23,411.                      

ICICI Bank March 2016 futures traded at a premium of 1.10 points at 186.10 compared with spot closing of 185.00. The number of contracts traded were 23,572.            

Bank of Baroda March 2016 futures traded at a premium of 0.75 points at 133.45 compared with spot closing of 132.70. The number of contracts traded were 11,733.       

Axis Bank March 2016 futures traded at a premium of 1.85 points at 388.25 compared with spot closing of 386.40. The number of contracts traded were 14,614.                                                

Tata Steel March 2016 futures traded at a premium of 1.25 points at 249.55 compared with spot closing of 248.30. The number of contracts traded were 9,338.    

Among Nifty calls, 7300 SP from the March month expiry was the most active call with an addition of 0.72 million open interests. Among Nifty puts, 6800 SP from the March month expiry was the most active put with an addition of 0.19 million open interests. The maximum OI outstanding for Calls was at 7500 SP (4.71 mn) and that for Puts was at 7000 SP (4.95 mn). The respective Support and Resistance levels of Nifty are: Resistance 7060.07 --- Pivot Point 7022.58 --- Support --- 6992.27.            

The Nifty Put Call Ratio (PCR) finally stood at 0.90 for March month contract. The top five scrips with highest PCR on OI were Divis Laboratories (3.14), Indian Overseas Bank (2.67), KPIT Technologies (2.00), Colgate Palmolive (India) (1.71) and Century Textiles Industries (1.58).  

Among most active underlying, State Bank of India witnessed a contraction of 0.50 million of Open Interest in the March month futures contract, followed by ICICI Bank witnessing an addition of 4.49 million of Open Interest in the March month contract; Axis Bank witnessed an addition of 0.09 million of Open Interest in the March month contract, Tata Steel  witnessed a contraction of 3.54 million of Open Interest in the March month contract and Yes Bank witnessed a contraction of 0.20 million units of Open Interest in the March month's future contract.