Nifty traded jubilantly on Monday; settles above 8600 level

The Indian benchmark index -- Nifty-- continued its northward journey for third straight session on Monday and finished the session with a gain of over a percent. After getting a negative start, market soon regained its momentum and extended its gains in second half of trade to end near day’s high, with a gains of over 94.45 point, as sentiment got some boost with reports that Finance Minister Arun Jaitley will meet his counterparts in states to discuss proposed amendments to the GST Bill on Tuesday, with the likely listing of GST Bill in Rajya Sabha this week. Market participants got some comfort with report that Foreign Direct Investment (FDI) in the first two months of the current financial year, indicating that the government has been able to create a suitable climate in which the foreign investors feel confident that interest is protected. On the sectoral front, all the gauges ended in green with the PSU Bankex leading the rally with a gain of 3.60 percent followed by media, bank and Realty indices up by 1.64 percent, 1.60 percent and 1.48 percent, respectively.

On global front, Asian share ended higher on Monday as G20 nations pledged to support global growth at the summit in China, held over the weekend. While European market made a positive start.

The top gainers from the F&O segment were Punjab National Bank, PC Jeweller and Allahabad Bank. On the other hand, the top losers were Unitech, Dr. Reddy's Laboratories and Tata Elxsi. In the index options segment, maximum OI was being seen in the 8500-9000 calls and 7800-8800 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility addition by 1.42% and reached 15.71. The 50-share Nifty was up by 94.45 points or 1.11% to settle at 8,635.65

Nifty July 2016 futures closed at 8639.70 on Monday at a premium of 4.05 points over spot closing of 8,635.65, while Nifty August 2016 futures ended at 8682.10 at a premium of 46.45 points over spot closing. Nifty July futures saw contraction of 1.83 million (mn) units, taking the total outstanding open interest (OI) to 21.42 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 1.05 points at 230.65 compared with spot closing of 229.60. The number of contracts traded were 27,827. 

ICICI Bank July 2016 futures traded at a premium of 1.90 points at 269.05 compared with spot closing of 267.15. The number of contracts traded were 14,367.   

Vedanta of July 2016 futures traded at a discount of 0.05 points at 172.15 compared with spot closing of 172.20. The number of contracts traded were 18,614. 

HDFC Bank July 2016 futures traded at a premium of 3.25 points at 1248.25 compared with spot closing of 1,245.00. The number of contracts traded were 22,452. 

Axis Bank July 2016 futures traded at a discount of 0.05 points at 539.65 compared with spot closing of 539.70. The number of contracts traded were 29,702.

Among Nifty calls, 8600 SP from the July month expiry was the most active call with an contraction of 0.89 million open interests. Among Nifty puts, 8500 SP from the July month expiry was the most active put with an addition of 0.79 million open interests. The maximum OI outstanding for Calls was at 8700 SP (6.13 mn) and that for Puts was at 8500 SP (5.76 mn). The respective Support and Resistance levels of Nifty are: Resistance 8678.80--- Pivot Point 8598.00--- Support --- 8554.85. 

The Nifty Put Call Ratio (PCR) finally stood at 1.25 for July month contract. The top five scrips with highest PCR on OI were ULTRACEMCO (1.40), MARUTI (1.33), HDFC (1.32), WIPRO (1.19) and GODREJIND (1.19).   

Among most active underlying Vedanta witnessed an contraction of 6.46 million of Open Interest in the July month futures contract, followed Axis Bank witnessing an contraction of 2.43 million of Open Interest in the July month contract; State Bank of India witnessed a contraction of 16.19 million of Open Interest in the July month contract, HDFC Bank witnessed an contraction of 6.64 million of Open Interest in the July month contract and Maruti Suzuki India witnessed an contraction of 0.28 million units of Open Interest in the July month's future contract.