Nifty ends at intraday highs on Friday

The local benchmark -- Nifty traded with volatility throughout the day and managed to end the session with decent gains on Friday. After a positive opening, market slipped into red and traded choppy in first half of the day. In the second half, market find momentum and extended its gains to end near intraday high level, as sentiment got boost with the international credit rating agency Standard & Poor's (S&P) forecasting that India’s economy can grow at about 8% in the next two years. Trader took encouragement with the report that the Rajya Sabha will take up GST Bill for discussion next week amid good set of quarterly numbers. Traders took some encouragement with report that India's economy will hum along at a solid pace for the remainder of this fiscal year provided structural reforms are passed, while above-target inflation means the Reserve Bank of India will only cut rates once more this year. Further, India Meteorological Department’s statement that India has received 1% surplus rainfall since the monsoon season started in June too aided sentiments. However, gains remain capped with the Moody's Investors Service in its latest report has said that India’s external debt as of 2015 at $474 billion has experienced the second largest rise since 2010 representing 16% of the Asia Pacific region's total debt. Besides, external debt to GDP ratio has moved up to 23% from 17% in 2005, although is still one of the lowest globally.

On global front, Asian shares fell on Friday after soft US corporate results pulled Wall Street back from record highs, and as a string of data gave investors one of the first glimpses of the impact on global economic activity of Britain's vote to leave the EU. However, European markets were trading with traction in early deals.

Back home, there was broad based buying witnessed in the market and apart from the blue chips, all the sectoral indices, barring IT, Pharma and PSU bank, too participated strongly in the rally. Buying in Power space too provided support to the market, led by rally in Power Grid, NTPC, Tata Power, Siemens and ABB. Additionally, shares of Bangalore-based drug-maker Biocon jumped over 12 per cent in Friday's trade after the company reported its net profit grew by 17 per cent YoY in June quarter on account of healthy business recorded across molecule, biologics and branded formulations segments. Share of Power Grid Corporation climbed over 3 percent after the company received its board’s approval to invest Rs 2,731 crore in various projects.

The top gainers from the F&O segment were Biocon, Bharat Financial Inclusion and Cairn India. On the other hand, the top losers were Canara Bank, Mahindra & Mahindra Financial Services and Union Bank of India. In the index options segment, maximum OI was being seen in the 8500-9000 calls and 7800-8600 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility contraction by 1.37% and reached 15.49. The 50-share Nifty was up by 31.10 points or 0.37% to settle at 8,541.20

Nifty July 2016 futures closed at 8554.30 on Friday at a premium of 13.10 points over spot closing of 8,541.20, while Nifty August 2016 futures ended at 8594.20 at a premium of 53.00 points over spot closing. Nifty July futures saw addition of 0.13 million (mn) units, taking the total outstanding open interest (OI) to 23.26 million (mn) units. The near month derivatives contract will expire on July 28, 2016.

From the most active contracts, State Bank of India July 2016 futures traded at a premium of 0.75 points at 224.20 compared with spot closing of 223.45. The number of contracts traded were 14,156.Vedanta July 2016 futures traded at a premium of 0.40 points at 169.35 compared with spot closing of 168.95. The number of contracts traded were 17,369.   

ITC of July 2016 futures traded at a premium of 0.60 points at 250.20 compared with spot closing of 249.60. The number of contracts traded were 10,649.

Tata Motors July 2016 futures traded at a premium of 1.15 points at 507.80 compared with spot closing of 506.65. The number of contracts traded were 12,138. 

Axis Bank July 2016 futures traded at a premium of 1.70 points at 538.70 compared with spot closing of 537.00. The number of contracts traded were 17,357. 

Among Nifty calls, 8600 SP from the July month expiry was the most active call with an contraction of 0.25 million open interests. Among Nifty puts, 8500 SP from the July month expiry was the most active put with an addition of 0.40 million open interests. The maximum OI outstanding for Calls was at 8600 SP (6.17 mn) and that for Puts was at 8400 SP (5.87 mn). The respective Support and Resistance levels of Nifty are: Resistance 8563.50--- Pivot Point 8526.65--- Support --- 8504.35. 

The Nifty Put Call Ratio (PCR) finally stood at 1.13 for July month contract. The top five scrips with highest PCR on OI were ULTRACEMCO (1.44), HDFC (1.28), WIPRO (1.23), HEROMOTOCO (1.19) and GODREJIND (1.18).   

Among most active underlying Biocon witnessed an contraction of 0.33 million of Open Interest in the July month futures contract, followed Bharat Financial Inclusion witnessing an contraction of 0.40 million of Open Interest in the July month contract; Vedanta witnessed a contraction of 3.16 million of Open Interest in the July month contract, Axis Bank witnessed an contraction of 0.03 million of Open Interest in the July month contract and State Bank of India witnessed an contraction of 02.36 million units of Open Interest in the July month's future contract.