Late hour recovery helps Nifty to end slightly in green

The local benchmark Nifty, after witnessing bout of volatility, somehow managed to keep its head above water on Thursday. After making a volatile start, Indian Market gained traction and traded firmly in early deals as sentiment remain upbeat  after the biggest tax reform since Independence, the national sales tax or GST Bill which has been approved by the Rajya Sabha to replace a raft of different state and local taxes with a single unified value added tax system. However, market turned cautious and entered into red as traders booked profits at higher levels. Also, cautions prevail in the market as trader remained reluctant to make any significant move ahead of Reserve Bank of India (RBI) meet on August 9. Recovery in final hour of trade helped market to regain its green terrain and Nifty managed to end with marginal gains.

Global cues too provided strength to the local market with European counters trading higher in early deals as investors digest earnings reports and await the Bank of England's rate decision where it is expected to cut interest rates to a record low. Asian markets ended mostly in green on Thursday as oil prices rebounded from four-month lows.

Back home, on sectoral front, traders were seen piling position in realty, Auto and metal counter. Arvind shares jumped after it reported 11.32 per cent rise in its net profit at Rs 87.45 crore for the quarter ended June 30, 2016 as compared to Rs 78.56 crore for the same quarter in the previous year.

The top gainers from the F&O segment were Motherson Sumi Systems, Cadila Healthcare and DLF. On the other hand, the top losers were Bata India, Dish TV India and United Spirits. In the index options segment, maximum OI was being seen in the 8500-9000 calls and 8000-8700 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility contraction by 6.76% and reached 15.14. The 50-share Nifty was up by 6.25 points or 0.07% to settle at 8,551.10

Nifty August 2016 futures closed at 8594.40 on Thursday at a premium of 43.30 points over spot closing of 8,551.10, while Nifty September 2016 futures ended at 8640.85 at a premium of 89.75 points over spot closing. Nifty August futures saw contraction of 0.28 million (mn) units, taking the total outstanding open interest (OI) to 23.71 million (mn) units. The near month derivatives contract will expire on August 25, 2016.

From the most active contracts, ICICI Bank August 2016 futures traded at a discount of 0.35 points at 242.30 compared with spot closing of 242.65. The number of contracts traded were 20,715.

State Bank of India August 2016 futures traded at a premium of 0.55 points at 226.80 compared with spot closing of 226.25. The number of contracts traded were 15,692.   

Bank of Baroda of August 2016 futures traded at a discount of 0.40 points at 156.70 compared with spot closing of 157.10. The number of contracts traded were 12,570.

Tata Motors August 2016 futures traded at a premium of 1.55 points at 501.60 compared with spot closing of 500.05. The number of contracts traded were 13,151.   

Tata Steel August 2016 futures traded at a premium of 1.70 points at 376.00 compared with spot closing of 374.30. The number of contracts traded were 19,773.  Among Nifty calls, 8700 SP from the August month expiry was the most active call with an addition of 0.14 million open interests. Among Nifty puts, 8500 SP from the August month expiry was the most active put with an addition of 0.13 million open interests. The maximum OI outstanding for Calls was at 9000 SP (6.20 mn) and that for Puts was at 8500 SP (4.60 mn). The respective Support and Resistance levels of Nifty are: Resistance 8595.62--- Pivot Point 8556.88--- Support --- 8512.37.             

The Nifty Put Call Ratio (PCR) finally stood at 0.78 for August month contract. The top five scrips with highest PCR on OI were SRF (1.34), EICHERMOT (1.21), GODREJIND (1.19), TECHM (1.18) and JINDALSTEL (1.16).   

Among most active underlying ICICI Bank witnessed an addition of 5.93 million of Open Interest in the August month futures contract, followed Tata Steel witnessing an addition of 2.64 million of Open Interest in the August month contract; State Bank of India witnessed a contraction of 1.17 million of Open Interest in the August month contract, Maruti Suzuki India witnessed an contraction of 0.02 million of Open Interest in the August month contract and Tata Motors witnessed an addition of 0.74 million units of Open Interest in the August month's future contract.