Nifty ends above 8,150 mark on Wednesday

Domestic equity index -- Nifty -- ended higher on Wednesday on account of buying by investors in the blue chips counters. Investors' sentiment remained upbeat with the report that the country became the fastest growing nation in the world for the January-March quarter, as the nation's gross domestic product (GDP) grew 7.9% in the fourth quarter, against a projected 7.7%. Further, traders were also getting encouragement with growth in the eight core sectors, which jumped to 8.5% in April, on account of a sharp pick-up in refinery products and a commensurate rise in electricity generation. Besides, some support also came in with Finance Minister Arun Jaitley's statement that Indian economy is treading the upward curve in its growth trajectory and investors wanting higher returns should park funds in infrastructure and manufacturing sector. However, upside remained capped as investors booked profit at higher level and weak cues from the global markets.

On the global front, Asian markets ended mostly in red, after mixed signals from China's purchasing managers' index (PMI) surveys and better-than-expected Australian economic growth. European markets were trading lower, hit by a drop in commodity stocks and banks.

Back home, after making a positive opening, Indian equity benchmark has showed up move and continued to trade with traction till afternoon session. Thereafter, market trimmed it gain but continued to trade in green. Finally Nifty ended with gain of over 19 points. The top gainers from the F&O segment were Adani Ports and Special Economic Zone, Reliance Communications and Page Industries. On the other hand, the top losers were Canara Bank, Ashok Leyland and Union Bank of India. In the index options segment, maximum OI was being seen in the 8050-8500 calls and 7000-8100 puts. In today's session, while the traders preferred to exit 7700 put, heavy buildup was seen in the 80000 put. On the other hand, traders exited from 8600 Call, while 8400 call witnessed considerable OI addition. 

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.31% and reached 15.83. The 50-share Nifty was down by 19.85 points or 0.24% to settle at 8,179.95.   

Nifty June 2016 futures closed at 8194.55 on Wednesday’s at a premium of 14.60 points over spot closing of 8,179.95, while Nifty July 2016 futures ended at 8215.10 at a premium of 35.15 points over spot closing. Nifty June futures saw contraction of 0.13 million (mn) units, taking the total outstanding open interest (OI) to 21.49 million (mn) units. The near month derivatives contract will expire on June 30, 2016.                              

From the most active contracts, Reliance Communications June 2016 futures traded at a premium of 0.50 points at 49.70 compared with spot closing of 49.20. The number of contracts traded were 12,941.                

State Bank of India June 2016 futures traded at a discount of 3.15 points at 195.45 compared with spot closing of 198.60. The number of contracts traded were 48,602.          

Ashok Leyland June 2016 futures traded at a premium of 1.00 points at 105.20 compared with spot closing of 104.20. The number of contracts traded were 17,127.  

ICICI Bank June 2016 futures traded at a discount of 3.75 points at 236.75 compared with spot closing of 240.50. The number of contracts traded were 13,240.                

DLF June 2016 futures traded at a premium of 0.75 points at 133.75 compared with spot closing of 133.00. The number of contracts traded were 12,697.         

Among Nifty calls, 8300 SP from the May month expiry was the most active call with an addition of 0.11 million open interests. Among Nifty puts, 8100 SP from the May month expiry was the most active put with an addition of 0.44 million open interests. The maximum OI outstanding for Calls was at 8400 SP (4.01 mn) and that for Puts was at 8000 SP (6.62 mn). The respective Support and Resistance levels of Nifty are: Resistance 8206.52 --- Pivot Point 8188.78 --- Support --- 8162.22.             

The Nifty Put Call Ratio (PCR) finally stood at 1.18 for May month contract. The top five scrips with highest PCR on OI were Indusind Bank (1.62), Maruti Suzuki India (1.32), UCO Bank (1.07), ITC (1.00) and Mindtree (1.00).  

Among most active underlying, State Bank of India witnessed an addition of 3.49 million of Open Interest in the May month futures contract, followed Ashok Leyland witnessing an addition of 1.28 million of Open Interest in the May month contract; Tata Motors witnessed an addition of 0.07 million of Open Interest in the May month contract, Tata Steel witnessed a contraction of 0.30 million of Open Interest in the May month contract and Axis Bank witnessed an addition of 0.91 million units of Open Interest in the May month's future contract.