Nifty ends above 8,150 mark on firm global cues

Domestic equity index -- Nifty ended higher amid volatile trade on Friday on account of persistent buying by funds and retail investors, supported by firm global cues and favorable macro-economic data. Investors' sentiment remained upbeat with report that India's current account deficit (CAD) for the full fiscal 2015-16 narrowed to $22.1 billion or 1.1 percent of GDP, against $26.8 billio, or 1.3 percent of GDP, in 2014-15 on the back of contraction in the trade deficit. Also, CAD narrowed sharply to $0.3 billion or 0.1 percent of GDP, in the fourth quarter of 2015-16 from $7.1 billion or 1.3 percent, in the third quarter, on account of lower trade gap. The country's trade deficit for the entire fiscal narrowed to $130.1 billion from $144.9 billion in 2014-15. Investors also took some encouragement with the Economic Affairs Secretary Shaktikanta Das' statement that the FDI inflows in the current fiscal will top 15.3 percent rise in 2015-16 on the back of reforms and liberalisation of FDI norms. Stating that the CAD at 1.1 per cent of GDP is a 'robust macro economic indicator', he said efforts will continue on the reforms front. However, gains remained capped with the report that India's monsoon deficit has widened to 25% since the beginning of this month as rainfall in the past day was less than half of the normal level, increasing the anxiety of farmers although forecasters say that heavy showers are just a few days away.

On the global front, Asian markets ended higher, as investors' sentiment received a boost after US stocks ended a five-day losing streak to close higher Thursday. European shares rose on Friday, helped by a rebound in the battered banking sector, with investors attributing the rebound partly to the suspension of campaigning for Britain's EU referendum following the shooting of a lawmaker. Back home, Real estate stocks jumped on hopes that market regulator Sebi will relax rules for investment in REITs (real estate investment trust) and set easier compliance rules for foreign fund managers keen to relocate to India.

Back home, after making a gap-up opening, Indian equity benchmark traded with volatility but in tight band for most part of the session. Despite all the volatility, market managed to end the session with a gain of over one third of a percent. Finally, Nifty ends with the gains of around 30 points. The top gainers from the F&O segment were Unitech, Housing Development and Infrastructure and Oriental Bank of Commerce. On the other hand, the top losers were Tata Power Company, CEAT and Bharti Infratel. 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 7800 put, heavy buildup was seen in the 8000 put. On the other hand, traders exited from 8100 Call, while 8300 call witnessed considerable OI addition.    

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 1.96% and reached 17.35. The 50-share Nifty was up by 29.45 points or 0.36% to settle at 8,170.20.    

Nifty June 2016 futures closed at 8174.40 on Friday at a premium of 4.20 points over spot closing of 8,170.20, while Nifty July 2016 futures ended at 8199.20 at a premium of 29.00 points over spot closing.  Nifty June futures saw addition of 0.002 million (mn) units, taking the total outstanding open interest (OI) to 17.06 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 213.85 compared with spot closing of 212.90. The number of contracts traded were 28,870.                  

ICICI Bank June 2016 futures traded at a premium of 0.20 points at 239.00 compared with spot closing of 238.80. The number of contracts traded were 16,629.             

DLF June 2016 futures traded at a premium of 0.50 points at 134.70 compared with spot closing of 134.20. The number of contracts traded were 9,684.  

Housing Development and Infrastructure June 2016 futures traded at a premium of 0.50 points at 103.00 compared with spot closing of 102.50. The number of contracts traded were 14,473.                 

Axis Bank June 2016 futures traded at a premium of 2.30 points at 528.65 compared with spot closing of 526.35. The number of contracts traded were 13,841. 

Among Nifty calls, 8200 SP from the June month expiry was the most active call with an addition of 0.01 million open interests. Among Nifty puts, 8100 SP from the June month expiry was the most active put with an addition of 0.23 million open interests. The maximum OI outstanding for Calls was at 8300 SP (6.51 mn) and that for Puts was at 8000 SP (7.89 mn). The respective Support and Resistance levels of Nifty are: Resistance 8198.37 --- Pivot Point 8167.08 --- Support --- 8138.92.             

The Nifty Put Call Ratio (PCR) finally stood at 1.22 for June month contract. The top five scrips with highest PCR on OI were Indo Count Industries (1.55), Apollo Hospital (1.49), Hindalco (1.31), Indusind Bank (1.20) and Container Corporation of India (1.20).

Among most active underlying, State Bank of India witnessed a contraction of 0.23 million of Open Interest in the June month futures contract, followed Tata Motors witnessing a contraction of 0.44 million of Open Interest in the June month contract; Housing Development and Infrastructure witnessed an addition of 2.49 million of Open Interest in the June month contract, Yes Bank  witnessed an addition of 0.48 million of Open Interest in the June month contract and Axis Bank  witnessed a contraction of 0.07 million units of Open Interest in the June month's future contract.