Nifty snaps four days losing streak; ends above 8,200 level

Domestic equity index -- Nifty ended higher over one percent on Wednesday on account of value buying by investors in the front line blue chips counters supported by global markets. Investors' sentiment got some boost with the NITI Aayog Vice-Chairman Arvind Panagariya's statement that India's economic growth will cross the 8 per cent-mark this fiscal on the back of good monsoon and pick up in manufacturing. He said the growth in the last quarter of the previous financial year touched 7.9% because of uptick in manufacturing activity and improved performance of agriculture sector. Sentiments remained upbeat with Finance Minister Arun Jaitley's statement after a meeting of Empowered Committee of state FMs on the long awaited indirect tax reform that every state has either supported or accepted the idea of the pan-India Goods and Services Tax (GST) except Tamil Nadu. Some support also came after Union Cabinet approved new civil aviation policy and merger of five associaties with SBI. Meanwhile, Finance Minister Arun Jaitley has called a special meeting of food, agriculture ministers and other senior officials to discuss prices of essential commodities like pulses and tomato, and also to chalk out an immediate plan to insulate poor people from increasing prices of food items.

On the global front, Asian markets ended mostly higher, despite traders were cautiously awaiting the policy decisions from the Federal Reserve and the Bank of Japan (BoJ).  The US Federal Open Market Committee concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today. Following above tandem, European markets climbed and sterling gained against the dollar and yen, with France's CAC was up by 1.37%, Germany's DAX was up 1.07% and UK's FTSE 100 was up by 0.90%.

Back home, after displaying a decent trade in first half, Nifty extended its gains to reach intraday high levels on the back of hectic buying witnessed in last leg of trade, amid firm opening in the European counterpart. Finally, Nifty ended the session with gains of around 100 points.

The top gainers from the F&O segment were CESC, The India Cements and NTPC. On the other hand, the top losers were Jaiprakash Associates, Bharti Infratel and Unitech. In the index options segment, maximum OI was being seen in the 8000-8500 calls and 7000-8200 puts. In today's session, while the traders preferred to exit 9000 put, heavy buildup was seen in the 8000 put. On the other hand, traders exited from 8100 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 0.79% and reached 17.05. The 50-share Nifty was up by 97.75 points or 1.21% to settle at 8,206.60.    

Nifty June 2016 futures closed at 8221.35 on Wednesday at a premium of 14.75 points over spot closing of 8,206.60, while Nifty July 2016 futures ended at 8249.20 at a premium of 42.60 points over spot closing.  Nifty June futures saw contraction of 0.53 million (mn) units, taking the total outstanding open interest (OI) to 18.57 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 premium of 0.95 points at 216.20 compared with spot closing of 215.25. The number of contracts traded were 63,227.                  

ICICI Bank June 2016 futures traded at a discount of 3.40 points at 244.10 compared with spot closing of 247.50. The number of contracts traded were 19,579.            

Bank of Baroda June 2016 futures traded at a premium of 0.95 points at 152.45 compared with spot closing of 151.50. The number of contracts traded were 11,830.  

Vedanta June 2016 futures traded at a discount of 0.45 points at 119.95 compared with spot closing of 119.50. The number of contracts traded were 10,223.                

Punjab National Bank June 2016 futures traded at a discount of 0.25 points at 89.25 compared with spot closing of 89.50. The number of contracts traded were 10,379

Among Nifty calls, 8200 SP from the June month expiry was the most active call with a contraction of 0.01 million open interests. Among Nifty puts, 8000 SP from the June month expiry was the most active put with an addition of 1.38 million open interests. The maximum OI outstanding for Calls was at 8300 SP (5.86 mn) and that for Puts was at 8000 SP (8.08 mn). The respective Support and Resistance levels of Nifty are: Resistance 8238.82 --- Pivot Point 8180.98 --- Support --- 8148.77.             

The Nifty Put Call Ratio (PCR) finally stood at 1.28 for June month contract. The top five scrips with highest PCR on OI were Apollo Hospital (1.66), Indusind Bank (1.37), Maruti Suzuki India (1.26), Container Corporation of India (1.26) and Hindalco (1.19).    

Among most active underlying, State Bank of India witnessed an addition of 3.59 million of Open Interest in the June month futures contract, followed Jet Airways (India) witnessing an addition of 0.65 million of Open Interest in the June month contract; ICICI Bank witnessed an addition of 0.68 million of Open Interest in the June month contract, Reliance Industries witnessed a contraction of 0.43 million of Open Interest in the June month contract and Axis Bank witnessed a contraction of 0.21 million units of Open Interest in the June month's future contract.