Nifty ends with modest gain on Friday

The fifty shares index -- Nifty -- ended with marginal gain on Friday amid mixed global cues. Investors got some support with global rating agency Moody’s Investors Service's report that the governments’ 'Make in India' programme has boosted foreign direct investment in the country, helping the government reduce its dependence on volatile portfolio (equity and debt) flows in times of global uncertainties. The rating agency also added that the surge in FDI flows - a demonstration of stronger investor interest in India on the back of robust economic growth that will help the government cover its current account deficit. However, upside remained capped on report that drought in southern states has affected the cultivation of major commodities like rice, cotton and spices. Production of these commodities is likely to come down sharply if the absence of summer rains prevails. Further, sustained capital outflows by foreign funds and volatility in the oil and commodity segments, too dampened market sentiment. Meanwhile, shares of car makers finished lower after the domestic passenger car sales declined 0.3% to 1,75,730 units in March from 1,76,260 units in the same month last year.

On the global front, Asian markets ended mostly in red, tracking a sell-off in New York, and capping a volatile week as investors scurry to safety on growing concerns about the state of the global economy. However, European markets were trading higher as investors ventured into riskier assets such as equities as oil prices rose, while upbeat trade data lifted Germany DAX 30 index and gave sentiment a lift.

After getting a flat to negative opening, Indian equity benchmark were alternating between positive and negative territory throughout the session and ended with modest gain. The top gainers from the F&O segment were Jindal Steel & Power, Page Industries and The India Cements. On the other hand, the top losers were TV18 Broadcast, BEML and Jaiprakash Associates. In the index options segment, maximum OI was being seen in the 7500-8200 calls and 7000-7600 puts. In today's session, while the traders preferred to exit 7600 put, heavy buildup was seen in the 7000 put. On the other hand, traders exited from 8200 Call, while 7700 call witnessed considerable OI addition. 

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 2.97% and reached 16.43. The 50-share Nifty was up by 8.75 points or 0.12% to settle at 7,555.20.   

Nifty April 2016 futures closed 7578.10 on Friday at a premium of 22.90 points over spot closing of 7,555.20, while Nifty May 2016 futures ended at 7611.85 at a premium of 56.65 points over spot closing.  Nifty April futures saw contraction of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 15.69 million (mn) units. The near month derivatives contract will expire on April 28, 2016.                         

From the most active contracts, SBI April 2016 futures traded at a premium of 0.55 points at 184.00 compared with spot closing of 183.45. The number of contracts traded were 15,490.        

ICICI Bank April 2016 futures traded at a premium of 0.85 points at 222.35 compared with spot closing of 221.50. The number of contracts traded were 9,568.                          

Jindal Steel & Power April 2016 futures traded at a premium of 0.65 points at 67.10 compared with spot closing of 66.45. The number of contracts traded were 11,706.                                                      

DLF April 2016 futures traded at a premium of 0.70 points at 119.10 compared with spot closing of 118.40. The number of contracts traded were 9,685.   

Axis Bank April 2016 futures traded at a premium of 1.10 points at 423.75 compared with spot closing of 422.65. The number of contracts traded were 12,951. 

Among Nifty calls, 7600 SP from the March month expiry was the most active call with an addition of 0.44 million open interests. Among Nifty puts, 7500 SP from the March month expiry was the most active put with a contraction of 0.41 million open interests. The maximum OI outstanding for Calls was at 8000 SP (8.41 mn) and that for Puts was at 7500 SP (4.73 mn). The respective Support and Resistance levels of Nifty are: Resistance 7574.13 --- Pivot Point 7550.42 --- Support --- 7531.48.            

The Nifty Put Call Ratio (PCR) finally stood at 0.75 for March month contract. The top five scrips with highest PCR on OI were CESC (1.81), United Breweries (1.79), Indian Overseas Bank (1.46), Castrol India (1.33) and Bajaj Finance (1.09).  

Among most active underlying, Reliance Industries witnessed an addition of 0.57 million of Open Interest in the March month futures contract, followed by State Bank of India witnessing a contraction of 0.93 million of Open Interest in the March month contract; Tata Steel witnessed an addition of 0.46 million of Open Interest in the March month contract, Maruti Suzuki India witnessed an addition of 0.11 million of Open Interest in the March month contract and Infosys witnessed an addition of 0.08 million units of Open Interest in the March month's future contract.