Nifty adds half a percent gain; regains 8650 level

The local benchmark-- Nifty -- traded in green throughout the day and ended with a gain of over half a percent on Thursday. After a positive opening market gained momentum and extended its gains to end the session with a gains of almost 50 points, as sentiments got some support with the minutes of the US Federal Reserve's last rate-setting meeting, signaling slim chances of a rate hike anytime soon. Some support came after Moody’s Investors Services released a report on emerging market, highlighting that India is seeing gradual progress on reforms and the country’s outlook will largely be determined by domestic factors. The report maintained Gross Domestic Product (GDP) growth forecast for India at 7.5% adding that India now seems less vulnerable than it used to be. Positive opening in European counterparts too provided strength to domestic market. European shares rose for the first time in a week and emerging markets advanced as a gauge of commodities climbed for the sixth straight day. Meanwhile, Asian shares ended mostly in green.

The top gainers from the F&O segment were Bharat Financial, Torrent Pharmaceuticals and Sun TV Network. On the other hand, the top losers were Strides Shasun, Coal India and Jubilant Foodworks. In the index options segment, maximum OI was being seen in the 8600-9000 calls and 8300-8700 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility contraction by 1.56% and reached 14.55. The 50-share Nifty was up by 49.20 points or 0.57% to settle at 8,673.25

 Nifty August 2016 futures closed at 8685.10 on Thursday at a premium of 11.85 points over spot closing of 8,673.25, while Nifty September 2016 futures ended at 8734.65 at a premium of 61.40 points over spot closing. Nifty August futures saw contraction of 0.73 million (mn) units, taking the total outstanding open interest (OI) to 23.84 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 0.80 points at 249.00 compared with spot closing of 248.20. The number of contracts traded were 17,864.

ICICI Bank August 2016 futures traded at a premium of 0.35 points at 252.85 compared with spot closing of 252.50. The number of contracts traded were 19,664.

HDFC Bank August 2016 futures traded at a premium of 3.55 points at 1253.55 compared with spot closing of 1,250.00. The number of contracts traded were 8,421.

Tata Motors August 2016 futures traded at a premium of 3.20 points at 513.95 compared with spot closing of 510.75. The number of contracts traded were 8,521.   

Axis Bank August 2016 futures and spot traded flat with 593.95. The number of contracts traded were 8,058.

Among Nifty calls, 8700 SP from the August month expiry was the most active call with a contraction of 0.57 million open interests. Among Nifty puts, 8600 SP from the August month expiry was the most active put with an addition of 1.07 million open interests. The maximum OI outstanding for Calls was at 8800 SP (6.43 mn) and that for Puts was at 8600 SP (5.52 mn). The respective Support and Resistance levels of Nifty are: Resistance 8694.28--- Pivot Point 8669.67--- Support --- 8648.63.  

The Nifty Put Call Ratio (PCR) finally stood at 1.03 for August month contract. The top five scrips with highest PCR on OI were ICIL (1.56), YESBANK (1.54), BHARATFORG (1.39), JSWSTEEL (1.28) and EICHERMOT (1.23).

Among most active underlying State Bank of India witnessed an contraction of 1.25 million of Open Interest in the August month futures contract, followed ICICI Bank witnessing an contraction of 2.07 million of Open Interest in the August month contract, Bharat Financial Inclusion witnessed a contraction  of 1.25 million of Open Interest in the August month contract, Tata Steel witnessed an contraction  of 1.15 million of Open Interest in the August month contract and Tata Motors witnessed an contraction  of 0.58 million units of Open Interest in the August month's future contract.