Late hour recovery helps Nifty to end in green

The local benchmark Nifty, after witnessing bout of volatility, managed to keep its head above water on Thursday on the back of decent recovery witnessed in last leg of trade. After making a cautious start, Indian Market gained traction and traded firmly in early deals as sentiments remained up-beat with the report that the government is working out a plan to optimally utilize land banks of state run companies as part of its bigger ambition to monetize the assets of public sector enterprises. The government will look at all central public sector companies (CPSEs), including profit making firms, to assess if their existing resources can be utilized for spurring the economic growth. However, market turned cautious and entered into red in noon deals as traders booked profits at higher levels. Weakness in Indian rupee too dampened sentiment. The rupee was trading weak at 66.84 against the dollar, down by 7 paise. Also, cautions prevail in the market as trader remained reluctant to make any significant move ahead June IIP and retail inflation data for July scheduled to be released on Friday. Recovery in final hour of trade helped market to regain its green terrain and Nifty managed to end slightly in green.

Global cues too provided strength to the local market with European counters trading mostly in green in early deal but on caution note as a rise in crude oil inventory and expanding production in Saudi Arabia sent oil prices lower, while Asian market ended in red.

Back home, in scrip specific development, Atlanta shares surged over 15 per cent after the company registered net profit of Rs 27.89 crore for the quarter ended June 30, 2016 against net loss of Rs 7.69 crore in the same quarter a year ago.The top gainers from the F&O segment were Jaiprakash Associates, United Spirits and Aditya Birla Nuvo. On the other hand, the top losers were Bank of Baroda, Grasim Industries and Adani Enterprises. 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 4.76% and reached 14.21. The 50-share Nifty was up by 16.85 points or 0.20% to settle at 8,592.15

Nifty August 2016 futures closed at 8612.45 on Thursday at a premium of 20.30 points over spot closing of 8,592.15, while Nifty September 2016 futures ended at 8660.90 at a premium of 68.75 points over spot closing. Nifty August futures saw contraction of 0.05 million (mn) units, taking the total outstanding open interest (OI) to 25.50 million (mn) units. The near month derivatives contract will expire on August 25, 2016.

From the most active contracts, State Bank of India August 2016 futures traded at a premium of 1.00 points at 227.90 compared with spot closing of 226.90. The number of contracts traded were 14,434.

ICICI Bank August 2016 futures traded flat at 243.25 compared with spot closing. The number of contracts traded were 10,826.   

Bank of Baroda August 2016 futures traded at a premium of 0.60 points at 146.20 compared with spot closing of 145.60. The number of contracts traded were 31,946.

Rural Electrification Corporation August 2016 futures traded at a discount of 5.35 points at 221.85 compared with spot closing of 227.20. The number of contracts traded were 11,464.   

Reliance Industries August 2016 futures traded at a premium of 2.55 points at 1016.55 compared with spot closing of 1,014.00. The number of contracts traded were 11,782. 

Among Nifty calls, 8700 SP from the August month expiry was the most active call with an contraction of 0.06 million open interests. Among Nifty puts, 8500 SP from the August month expiry was the most active put with an addition of 0.23 million open interests. The maximum OI outstanding for Calls was at 9000 SP (6.60 mn) and that for Puts was at 8500 SP (5.59 mn). The respective Support and Resistance levels of Nifty are: Resistance 8615.52--- Pivot Point 8577.78--- Support --- 8554.42.             

The Nifty Put Call Ratio (PCR) finally stood at 0.91 for August month contract. The top five scrips with highest PCR on OI were ICIL (1.88), BHARATFORG (1.24), UBL (1.21), JINDALSTEL (1.17) and EICHERMOT (1.10).

Among most active underlying Bank of Baroda witnessed an addition of 4.97 million of Open Interest in the August month futures contract, followed State Bank of India witnessing an addition of 0.31 million of Open Interest in the August month contract, Yes Bank and Special Economic Zone witnessed a contraction of 0.04 million of Open Interest in the August month contract, Sun Pharmaceuticals Industries witnessed an addition of 1.60 million of Open Interest in the August month contract and ICICI Bank witnessed an contraction of 2.25 million units of Open Interest in the August month's future contract.