Nifty ends above 7, 950 mark

Domestic equity index -- Nifty - ended higher by over one and quarter a percent on account of sustained buying by market participants in the blue chip stocks such as Hindalco, idea and Indusind Bank.  Sentiment got boost with Economic Affairs Secretary Shaktikanta Das, pledging a strong focus on the execution of Budget announcements and ensuring that there are no delays in investments by key ministries, said that India plans to further liberalise rules for overseas investors as the government looks to reduce the need for approvals. Further, some support also came in with private report which said that India may this year surpass China in attracting foreign direct investment, in terms of percentage of its GDP, as the gap in inflows between the two has been narrowing on the back of ongoing reforms in the country.  Besides, recovery in global crude oil too aided the sentiment.  On the global front, Asian markets ended mixed as investors remained cautious ahead of central-bank meetings this week in Japan and the U.S, while Encouraging company results and firmer oil prices helped European shares rebound on Tuesday.

After getting a gap-down opening, Indian equity market recovered gradully to enter into positive territory. Thereafter, market extended its gain and too reclaimed its crucial 7,950 mark. Finally, Nifty ended with gain of over 100 points.  The top gainers from the F&O segment were Rural Electrification Corporation, Hindalco Industries and Idea Cellular. On the other hand, the top losers were Just Dial, UPL and United Breweries. In the index options segment, maximum OI was being seen in the 7800-8200 calls and 7000-7900 puts. In today's session, while the traders preferred to exit 7750 put, heavy buildup was seen in the 7950 put. On the other hand, traders exited from 7900 Call, while 8050 call witnessed considerable OI addition.   

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 0.05% and reached 16.58. The 50-share Nifty was down by 107.60 points or 1.37% to settle at 7,962.65.   

Nifty April 2016 futures closed 7979.15 on Tuesday at a premium of 16.50 points over spot closing of 7,962.65, while Nifty May 2016 futures ended at 8017.20 at a premium of 54.55 points over spot closing.  Nifty April futures saw contraction of 2.21 million (mn) units, taking the total outstanding open interest (OI) to 11.78 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 0.50 points at 201.30 compared with spot closing of 200.80. The number of contracts traded were 33,973.         

ICICI Bank April 2016 futures traded at a premium of 1.05 points at 254.55 compared with spot closing of 253.50. The number of contracts traded were 23,493.          

Axis Bank April 2016 futures traded at a premium of 3.05 points at 480.85 compared with spot closing of 477.80. The number of contracts traded were 34,841.                                                       

Tata Steel April 2016 futures traded at a premium of 1.45 points at 359.25 compared with spot closing of 357.80. The number of contracts traded were 18,625.         

Reliance Industries April 2016 futures traded at a premium of 3.40 points at 1017.70 compared with spot closing of 1,014.30. The number of contracts traded were 24,771. 

Among Nifty calls, 8000 SP from the March month expiry was the most active call with a contraction of 1.03 million open interests. Among Nifty puts, 7900 SP from the March month expiry was the most active put with an addition of 1.47 million open interests. The maximum OI outstanding for Calls was at 8000 SP (6.71 mn) and that for Puts was at 7800 SP (6.28 mn). The respective Support and Resistance levels of Nifty are: Resistance 8017.25 --- Pivot Point 7919.90 --- Support --- 7865.30.            

The Nifty Put Call Ratio (PCR) finally stood at 1.44 for March month contract. The top five scrips with highest PCR on OI were Bajaj Finance (2.74), Indian Overseas Bank (1.80), Tata Steel (1.32), Ajanta Pharma (1.31) and Mahindra & Mahindra (1.30).  

Among most active underlying, Maruti Suzuki India witnessed a contraction of 0.59 million of Open Interest in the March month futures contract, followed by Axis Bank witnessing a contraction of 4.35 million of Open Interest in the March month contract; State Bank of India witnessed a contraction of 13.41 million of Open Interest in the March month contract, Reliance Industries witnessed a contraction of 3.65 million of Open Interest in the March month contract and Tata Steel witnessed a contraction of 4.94 million units of Open Interest in the March month's future contract.