Nifty ends above 7,500 level amid positive global cues

The fifty stock index - Nifty - ended higher on Friday, following the recovery in other Asian markets and buying in oil and gas stocks after the government announced crucial reforms for the oil and gas sector. Investors’ sentiment remained upbeat with the IMF's financial counselor Jose Vinals statement that India needs to address the stress emanating from leveraged corporate balance sheets and asset quality woes of state-run banks to sustain the recovery process, even as the country is best placed among emerging markets. However, some cautiousness prevailed in the market because ahead of Index of Industrial Production data for January to be released later in the day.

On the global front, Asian markets ended higher on Friday, shrugging off a subdued start early in the day on anxiety about the dissipating power of global central banks to fight sluggish economic growth and boost inflation. European markets were trading higher, with Germany’s DAX was up by 2.82%, France’s CAC was up by 2.8% and UK’s FTSE 100 was up by 1.56% after the European Central Bank slashed interest rates on Thursday to lift the euro zone economy and stunned financial markets by reducing its main refinancing rate to zero from 0.05% also support to market’s uptrend.

Back home, Indian equity benchmark made a flat opening and was showing upmove in morning deals on account of sustained buying by fund and retails investors. Thereafter, traders started booking profit at higher levels and market entered into red for short period in noon deals. Though, market once again gained movement and entered into positive territory and continued to trade in green till end. 

The top gainers from the F&O segment were Cairn India, Marico and Voltas. On the other hand, the top losers were Jindal Steel & Power, Crompton Greaves and Idea Cellular. In the index options segment, maximum OI was being seen in the 7200-8000 calls and 6500-7500 puts. In today's session, while the traders preferred to exit 7100 put, heavy buildup was seen in the 7500 put. On the other hand, traders exited from 7400 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 4.46% and reached 17.09. The 50-share Nifty was down by 24.05 points or 0.32% to settle at 7,510.20.   

Nifty March 2016 futures closed 7512.20 on Friday at a premium of 2.00 points over spot closing of 7,510.20, while Nifty April 2016 futures ended at 7548.75 at a premium of 38.55 points over spot closing. Nifty March futures saw addition of 0.22 million (mn) units, taking the total outstanding open interest (OI) to 22.00 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 premium of 0.60 points at 181.15 compared with spot closing of 180.55. The number of contracts traded were 22,515.                      

ICICI Bank March 2016 futures traded at a discount of 0.40 points at 214.45 compared with spot closing of 214.85. The number of contracts traded were 14,738.             

Axis Bank March 2016 futures traded at a premium of 2.30 points at 415.20 compared with spot closing of 412.90. The number of contracts traded were 19,578.                 

DLF March 2016 futures traded at a discount of 0.90 points at 105.70 compared with spot closing of 106.60. The number of contracts traded were 10,992.

Tata Motors March 2016 futures traded at a premium of 1.40 points at 354.75 compared with spot closing of 353.35. The number of contracts traded were 12,027.

Among Nifty calls, 7600 SP from the March month expiry was the most active call with a contraction of 0.05 million open interests. Among Nifty puts, 7400 SP from the March month expiry was the most active put with a contraction of 0.08 million open interests. The maximum OI outstanding for Calls was at 7500 SP (6.65 mn) and that for Puts was at 7200 SP (6.71 mn). The respective Support and Resistance levels of Nifty are: Resistance 7549.23 --- Pivot Point 7504.92 --- Support --- 7465.88.            

The Nifty Put Call Ratio (PCR) finally stood at 1.12 for March month contract. The top five scrips with highest PCR on OI were Cummins India (4.00), Indian Overseas Bank (3.05), Divis Laboratories (1.93), Eicher Mootors (1.75) and Mcleod Russel India (1.63).  

Among most active underlying, State Bank of India witnessed an addition of 0.12 million of Open Interest in the March month futures contract, followed by Tata Steel witnessing an addition of 0.44 million of Open Interest in the March month contract; Reliance Industries witnessed a contraction of 0.45 million of Open Interest in the March month contract, Yes Bank witnessed a contraction of 0.001 million of Open Interest in the March month contract and Axis Bank witnessed a contraction of 0.52 million units of Open Interest in the March month's future contract.