Nifty ends flat on profit-booking

Domestic equity index -- Nifty has ended flat with positive bias on Friday, as market participants booked profits at higher level. Sentiments came under pressure after the India's services sector growth fell drastically in May compared to April as new businesses were not as forthcoming. The purchasing managers' index (PMI) declined to 51 points in May, the weakest since November, 2015, from 53.7 in April. The 51 points still represents a growth, since any reading above 50 is an expansion and one below that is contraction.  Further, caution also prevailed in the market ahead of US jobs data that could provide some hints about the timing of the Federal Reserve's likely move on interest rate hike. However, domestic equity market has made a positive start and traded in green, as India Meteorological Department (IMD) has maintained its above-normal monsoon forecast for the year, lifting firms dependant on rural demand. The June-September monsoon rains would be 106% of the long-term average. Stronger rains could cool down food prices, raising the prospect that the Reserve Bank of India would be more willing to cut interest rates again later this year. Some support also came in with finance minister Arun Jaitley's statement that India will attempt to keep the proposed Goods & Services Tax ( GST ) rate as moderate as possible and the government will push for passage of the bill introducing the levy in the upcoming monsoon session of Parliament.

On the global front, Asian markets ended higher following a strong finish on the Wall Street. Meanwhile, investors were eyeing the US jobs data due later today. European markets were trading higher with French hotel group Accor climbing on a report that China's Jin Jiang was planning to hike its stake in the group, while a recovery in commodities prices boosted mining and energy stocks.

The top gainers from the F&O segment were NMDC, Jaiprakash Associates and Torrent Pharmaceuticals. On the other hand, the top losers were Idea Cellular, Motherson Sumi Systems and Adani Enterprises. In the index options segment, maximum OI was being seen in the 8000-8600 calls and 7000-8200 puts. In today's session, while the traders preferred to exit 8000 put, heavy buildup was seen in the 7800 put. On the other hand, traders exited from 8200 Call, while 8500 call witnessed considerable OI addition.    

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 0.61% and reached 14.99. The 50-share Nifty was up by 1.85 points or 0.02% to settle at 8,220.80.   

Nifty June 2016 futures closed at 8238.90 on Friday at a premium of 18.10 points over spot closing of 8,220.80, while Nifty July 2016 futures ended at 8260.65 at a premium of 39.85 points over spot closing. Nifty June futures saw contraction of 0.32 million (mn) units, taking the total outstanding open interest (OI) to 21.19 million (mn) units. The near month derivatives contract will expire on June 30, 2016.                              

From the most active contracts, State Bank of India June 2016 futures traded at a discount of 0.05 points at 196.20 compared with spot closing of 196.25. The number of contracts traded were 31,691.                

Idea Cellular June 2016 futures traded at a discount of 0.05 points at 105.20 compared with spot closing of 105.25. The number of contracts traded were 34,162.           

ICICI Bank June 2016 futures traded at a discount of 3.75 points at 239.85 compared with spot closing of 243.60. The number of contracts traded were 13,756.  

DLF June 2016 futures traded at a premium of 0.75 points at 132.80 compared with spot closing of 132.05. The number of contracts traded were 11,710.                

Tata Motors June 2016 futures traded at a premium of 3.85 points at 456.40 compared with spot closing of 452.55. The number of contracts traded were 18,207.   

Among Nifty calls, 8300 SP from the May month expiry was the most active call with an addition of 0.40 million open interests. Among Nifty puts, 8200 SP from the May month expiry was the most active put with an addition of 0.36 million open interests. The maximum OI outstanding for Calls was at 8400 SP (4.49 mn) and that for Puts was at 8000 SP (6.10 mn). The respective Support and Resistance levels of Nifty are: Resistance 8251.92 --- Pivot Point 8230.88 --- Support --- 8199.77.             

The Nifty Put Call Ratio (PCR) finally stood at 1.19 for May month contract. The top five scrips with highest PCR on OI were Apollo Hospital (1.78), Maruti Suzuki India (1.49), Indusind Bank (1.24), United Breweries (1.22) and Yes bank (1.04).   

Among most active underlying, State Bank of India witnessed a contraction of 0.79 million of Open Interest in the May month futures contract, followed Tata Motors  witnessing a contraction of 1.03 million of Open Interest in the May month contract; Axis Bank  witnessed a contraction of 0.75 million of Open Interest in the May month contract, Idea Cellular  witnessed an addition of 1.97 million of Open Interest in the May month contract and Tata Steel witnessed a contraction of 2.55 million units of Open Interest in the May month's future contract.