Nifty ends above 8,250 mark amid firm global cues

Domestic equity index -- Nifty has ended higher on Tuesday on account of buying by market participants in the frontline blue chips counters amid firm cues from the global markets. Sentiments got boost after the Reserve Bank of India (RBI) maintained status quo on key rates as was largely in line with investor expectations. The RBI has kept the repo rate unchanged at 6.5%, on back of higher food inflation and amid expectations of a rate action by the US Federal Reserve. The Cash Reserve Ratio (CRR) has also been kept unchanged at 4% in its monetary policy review. But, RBI continued to maintain an accommodative stance and if all goes well and there is a fall in food inflation, will be willing to lower rates further. Besides, support also came in with the Global Retail Development Index (GRDI) report that India jumped 13 positions from last year to rank second among 30 developing countries this year on ease of doing business. The second rank is on the back of pick up in GDP growth and better clarity regarding FDI regulations. The report further said that India is now the world's fastest-growing major economy, overtaking China, and the retail demand is being fueled by urbanization, an expanding middle class, and more women entering the workforce.

On the global front, Asian markets ended higher after Federal Reserve Chair Janet Yellen did not signal any timing of a possible hike in US interest rate. European markets were trading higher with Germany’s DAX was up by 1.67%, France’s CAC was up by 1.18% and UK’s FTSE 100 was up by 0.41%.

Back home, after making a positive opening, benchmark traded in tight range in morning deals; thereafter market extended its gain and recaptured its psychological 8,250 level in noon session. However, some profit booking which was witnessed in the last leg of trade. Finally, Nifty ended with gain of over 64 points. Finally, Nifty ended with gain of over 64 points. The top gainers from the F&O segment were Federal Bank, State Bank of India and KPIT Technologies. On the other hand, the top losers were Jet Airways (India), Glenmark Pharmaceuticals and Bharat Petroleum Corporation. 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 7900 put, heavy buildup was seen in the 8100 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 3.16% and reached 14.87. The 50-share Nifty was up by 65.40 points or 0.80% to settle at 8,266.45.   

Nifty June 2016 futures closed at 8283.15 on Tuesday at a premium of 16.70 points over spot closing of 8,266.45, while Nifty July 2016 futures ended at 8309.10 at a premium of 42.65 points over spot closing.  Nifty June futures saw addition of 0.66 million (mn) units, taking the total outstanding open interest (OI) to 21.65 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 1.50 points at 208.65 compared with spot closing of 210.15. The number of contracts traded were 67,341.                 

ICICI Bank June 2016 futures traded at a discount of 4.95 points at 249.55 compared with spot closing of 254.50. The number of contracts traded were 32,047.            

Bank of Baroda June 2016 futures traded at a premium of 0.90 points at 146.15 compared with spot closing of 145.25. The number of contracts traded were 10,479.  

Tata Motors June 2016 futures traded at a premium of 2.70 points at 465.90 compared with spot closing of 463.20. The number of contracts traded were 16,175.                

Axis Bank June 2016 futures traded at a premium of 4.00 points at 537.75 compared with spot closing of 533.75. The number of contracts traded were 15,049.     

Among Nifty calls, 8300 SP from the June month expiry was the most active call with an addition of 0.13 million open interests. Among Nifty puts, 8200 SP from the June month expiry was the most active put with an addition of 0.52 million open interests. The maximum OI outstanding for Calls was at 8400 SP (4.81 mn) and that for Puts was at 8000 SP (6.43 mn). The respective Support and Resistance levels of Nifty are: Resistance 8302.13 --- Pivot Point 8259.27 --- Support --- 8223.58.             

The Nifty Put Call Ratio (PCR) finally stood at 1.21 for June month contract. The top five scrips with highest PCR on OI were Apollo Hospital (1.35), Maruti Suzuki India (1.18), Yes Bank (1.17), United Breweries (1.15) and Container Corporation of India (1.13).    

Among most active underlying, State Bank of India witnessed an addition of 2.74 million of Open Interest in the June month futures contract, followed Yes Bank witnessing an addition of 0.71 million of Open Interest in the June month contract; ICICI Bank witnessed an addition of 2.56 million of Open Interest in the June month contract, Tata Motors witnessed a contraction of 0.21 million of Open Interest in the June month contract and Sun Pharmaceuticals Industries  witnessed an addition of 0.06 million units of Open Interest in the June month's future contract.