Nifty ends near 2016 closing high level, surpasses 8,250 mark

Bulls which woke up in last leg of trade mainly helped Nifty to end near 2016 closing high level on Thursday, as investors took to hefty across the board buying. After a cautious start, market gained momentum and started moving northward with traders taking encouragement with India Meteoroligical Department’s (IMD) statement that the monsoon has delivered the season's heaviest showers in the past day. Total rainfall in the country was 25% above normal, the best since June 1, 2016. IMD expects rainfall in the next week to be much more than the past week across the country. Further, according to Skymet, Southwest Monsoon remains active over Northeast India and along the West Coast. Most parts of these regions have recorded heavy to very heavy Monsoon rainfall. Investors' took some encouragement with RBI Governor Raghuram Rajan stating that the central bank is watching the situation and will infuse whatever liquidity is needed to keep Indian markets well behaved. On the global front, Asian market ended mixed as investors remain edgy ahead of the UK vote. European markets soared on as firmer copper prices boosted mining stocks, with France's CAC was up by 2.28%, Germany's DAX was up by 2.22% and UK's FTSE 100 was up by 1.51%.

Back home, after making cautious start, Indian equity benchmark traded choppy for the most part of day's trade, as investors remained on sidelines ahead of Brexit referendum. Thereafter, market started recovering and gained momentum to enter into green territory. Market has extended its gains to reach intraday high in the last let of trade to reach intraday high on the back of firm cues from European counterparts. Finally, Nifty ended the session with a gain of around seventy points.

The top gainers from the F&O segment were Allahabad Bank, Jain Irrigation Systems and Hexaware Technologies. On the other hand, the top losers were Bharti Infratel, Housing Development and Infrastructure and Unitech. In the index options segment, maximum OI was being seen in the 8200-8600 calls and 7000-8200 puts. In today's session, while the traders preferred to exit 8000 put, heavy buildup was seen in the 8200 put. On the other hand, traders exited from 8300 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 0.90% and reached 18.02. The 50-share Nifty was up by 66.75 points or 0.81% to settle at 8,270.45.    

Nifty June 2016 futures closed at 8282.25 on Thursday at a premium of 11.80 points over spot closing of 8,270.45, while Nifty July 2016 futures ended at 8310.10 at a premium of 39.65 points over spot closing.  Nifty June futures saw addition of 0.32 million (mn) units, taking the total outstanding open interest (OI) to 15.88 million (mn) units. The near month derivatives contract will expire on June 30, 2016.

From the most active contracts, Reliance Industries June 2016 futures traded at a premium of 1.10 points at 982.10 compared with spot closing of 981.00. The number of contracts traded were 10,428.

State Bank of India June 2016 futures traded at a discount of 0.60 points at 217.20 compared with spot closing of 217.80. The number of contracts traded were 26,908. 

ICICI Bank June 2016 futures traded at a premium of 0.75 points at 241.75 compared with spot closing of 241.00. The number of contracts traded were 14,957.                  

Axis Bank June 2016 futures traded at a premium of 3.20 points at 528.10 compared with spot closing of 524.90. The number of contracts traded were 11,970.           

Tata Motors June 2016 futures traded at a premium of 1.90 points at 489.65 compared with spot closing of 487.75. The number of contracts traded were 19,076.  

Among Nifty calls, 8300 SP from the June month expiry was the most active call with a contraction of 9.40 million open interests. Among Nifty puts, 8100 SP from the June month expiry was the most active put with an addition of 0.39 million open interests. The maximum OI outstanding for Calls was at 8400 SP (6.62 mn) and that for Puts was at 8000 SP (8.48 mn). The respective Support and Resistance levels of Nifty are: Resistance 8307.93 --- Pivot Point 8248.12 --- Support --- 8210.63.             

The Nifty Put Call Ratio (PCR) finally stood at 1.36 for June month contract. The top five scrips with highest PCR on OI were Hindalco (1.45), Indusind Bank (1.39), Yes Bank (1.32), Apollo Hospital (1.32) and Container Corporation of India (1.21). 

Among most active underlying, Tata Motors  witnessed an addition of 1.28 million of Open Interest in the June month futures contract, followed State Bank of India witnessing a contraction of 5.57 million of Open Interest in the June month contract; Yes Bank witnessed an addition of 0.17 million of Open Interest in the June month contract, Sun Pharmaceuticals Industries witnessed a contraction of 1.41 million of Open Interest in the June month contract and Tata Steel witnessed a contraction of 8.02 million units of Open Interest in the June month's future contract.