Nifty ends higher for third straight day on Thursday

The fifty stock index -- Nifty -- extended its gain for the third consecutive session on Thursday on the back of broad-based buying in front line blue chip counters amid firm global cues. The rallied in metal shares on rebound in  commodity prices while the minimum import price hike on aluminium announced by the government also boosted sentiment. Sentiments remained upbeat after the International Monetary Fund (IMF) projected a robust growth rate of 7.3% for the country this fiscal, picking up to 7.5% next year. Furthermore, Continued FII buying encouraged by the regulatory boost to the financial sector and the government’s commitment to keep to the 3.5 percent fiscal deficit target buoyed the market sentiment. Besides, appreciation in Indian rupee against the US dollar too supported the market. On the global front, Asian markets ended mostly in green, as rising oil prices and signs of an improving U.S. economy appeared to restore investor confidence. However, European markets were trading mostly in red in early deals as investors paused for breath after a rally in equities over the past few days. Back home, after getting a gap up opening Indian equity benchmark continued to trade firm throughout the session and finally ended with gain of over 100 points 

The top gainers from the F&O segment were Just Dial, Jindal Steel & Power and Tata Steel. On the other hand, the top losers were PC Jeweller, Apollo Hospitals Enterprise and SKS Microfinance. In the index options segment, maximum OI was being seen in the 7000-8000 calls and 6500-7400 puts. In today's session, while the traders preferred to exit 6900 put, heavy buildup was seen in the 7400 put. On the other hand, traders exited from 7300 Call, while 7800 call witnessed considerable OI addition.  

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 5.00% and reached 18.04. The 50-share Nifty was up by 106.75 points or 1.45% to settle at 7,475.60.   

Nifty March 2016 futures closed 7449.55 on Thursday at a discount of 26.05 points over spot closing of 7,475.60, while Nifty April 2016 futures ended at 7475 at a discount of 0.60 points over spot closing. Nifty March futures saw addition of 1.37 million (mn) units, taking the total outstanding open interest (OI) to 21.32 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 1.70 points at 181.90 compared with spot closing of 183.60. The number of contracts traded were 31,392.                      

ICICI Bank March 2016 futures traded at a discount of 0.75 points at 216.85 compared with spot closing of 217.60. The number of contracts traded were 35,617.             

Axis Bank March 2016 futures traded at a premium of 1.60 points at 417.50 compared with spot closing of 415.90. The number of contracts traded were 17,290.                

Tata Motors March 2016 futures traded at a premium of 0.05 points at 337.05 compared with spot closing of 337.00. The number of contracts traded were 17,642.       

Bharat Heavy Electricals March 2016 futures traded at a premium of 0.30 points at 103.55 compared with spot closing of 103.25. The number of contracts traded were 12,542.      

Among Nifty calls, 7500 SP from the March month expiry was the most active call with an addition of 0.11 million open interests. Among Nifty puts, 7200 SP from the March month expiry was the most active put with an addition of 0.97 million open interests. The maximum OI outstanding for Calls was at 7500 SP (5.13 mn) and that for Puts was at 7000 SP (7.04 mn). The respective Support and Resistance levels of Nifty are: Resistance 7504.35 --- Pivot Point 7455.20 --- Support --- 7426.45.            

The Nifty Put Call Ratio (PCR) finally stood at 1.14 for March month contract. The top five scrips with highest PCR on OI were Indian Overseas Bank (3.96), Divis Laboratories (3.38), Granules India (2.53), Gail India (1.76) and ITC (1.52).  

Among most active underlying, State Bank of India witnessed a contraction of 2.29 million of Open Interest in the March month futures contract, followed by Tata Steel witnessing an addition of 0.76 million of Open Interest in the March month contract; Larsen & Toubro witnessed a contraction of 0.15 million of Open Interest in the March month contract, Tata Motors  witnessed an addition of 0.89 million of Open Interest in the March month contract and Reliance Industries witnessed an addition of 0.32 million units of Open Interest in the March month's future contract.