Nifty ends above 8,050 amid firm global cues

The domestic equity index -- Nifty -- ended higher over one and half percent, as market participants indulged in buying valuable stocks in the front line blue chips counters amid firm cues from the global markets. Sentiments got boost with the rise in crude oil prices, expectation of above normal monsoon. The G7 summit in Japan to take stock of the global economy also infused a sense of confidence.  Further, buying in capital goods stocks too supported the market, as government approved the country’s first ‘National Capital Goods Policy’, which seeks to treble the production of capital goods in 10 years to Rs 7,50,000 crore and raise employment in the sector almost four times to 30 million. Banking stocks too remained on buyers’ radar after global credit rating agency Moody's Investors Service on Thursday said India's bankruptcy code boosts creditors bargaining power against big borrowers.

On the global front, Asian markets ended mostly higher, as oil prices advanced to their highest levels in more than seven months and investors shook off worries about higher U.S. interest rates. European markets were trading higher with energy shares got a boost as Brent crude recaptured the $50-a-barrel level.

Back home, after making a gap-up opening, benchmark has extended its early gain and continued to trade with traction throughout the session. Finally, Nifty ended with gain of over 134 points. The top gainers from the F&O segment were The Larsen & Toubro, Ashok Leyland and Adani Power. On the other hand, the top losers were Jaiprakash Associates, Cummins India and Indian Overseas Bank. In the index options segment, maximum OI was being seen in the 8100-8500 calls and 7000-8000 puts. In today's session, while the traders preferred to exit 7500 put, heavy buildup was seen in the 8000 put. On the other hand, traders exited from 8000 Call, while 8100 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.26% and reached 15.32. The 50-share Nifty was up by 134.75 points or 1.70% to settle at 8,069.65.   

Nifty June 2016 futures closed flat at 8069.65 on Thursday over spot closing, while Nifty July 2016 futures ended at 8084.50 at a premium of 14.85 points over spot closing.  Nifty June futures saw addition of 4.60 million (mn) units, taking the total outstanding open interest (OI) to 19.48 million (mn) units. The near month derivatives contract will expire on June 30, 2016.                             

From the most active contracts, SBI June 2016 futures traded at a discount of 2.10 points at 182.45 compared with spot closing of 184.55. The number of contracts traded were 26,819.                

ICICI Bank June 2016 futures traded at a discount of 3.00 points at 236.65 compared with spot closing of 239.65. The number of contracts traded were 21,289.          

Reliance Industries June 2016 futures traded at a premium of 7.80 points at 955.10 compared with spot closing of 947.30. The number of contracts traded were 27,811.  

HDFC Bank June 2016 futures traded at a discount of 1.85 points at 1181.00 compared with spot closing of 1,182.85. The number of contracts traded were 22,446.                

Axis Bank June 2016 futures traded at a premium of 2.30 points at 523.35 compared with spot closing of 521.05. The number of contracts traded were 20,780.    

Among Nifty calls, 8000 SP from the June month expiry was the most active call with a contraction of 6.86 million open interests. Among Nifty puts, 7900 SP from the June month expiry was the most active put with an addition of 2.51 million open interests. The maximum OI outstanding for Calls was at 8100 SP (6.50 mn) and that for Puts was at 7900 SP (8.34 mn). The respective Support and Resistance levels of Nifty are: Resistance 8118.93 --- Pivot Point 8033.72 --- Support --- 7984.43.               

The Nifty Put Call Ratio (PCR) finally stood at 1.05 for June month contract. The top five scrips with highest PCR on OI were UCO Bank (3.33), Indian Overseas Bank (2.78), KPIT Technologies (2.50), Divis Laboratories (2.00), and Andhra bank (1.98).   

Among most active underlying, Larsen & Toubro witnessed a contraction of 1.55 million of Open Interest in the June month futures contract, followed State Bank of India witnessing an addition of 5.66 million of Open Interest in the June month contract; Ashok Leyland witnessed a contraction of 16.82 million of Open Interest in the June month contract, Tata Steel witnessed a contraction of 10.93 million of Open Interest in the June month contract and Reliance Industries witnessed an addition of 7.18 million units of Open Interest in the June month's future contract.