Nifty ends low to settles below 8600

Indian benchmark index --Nifty-- finished the session in negative territory on Friday. After a positive start, market hold their gain for certain period as investor took some support from Indian Credit Rating Agency (ICRA) in its latest report estimated the Gross Domestic Product (GDP) growth to remain flat at 7.2% in the June quarter 2016 under the Gross Value Added (GVA) calculation. Further index failed to hold their gain and entered into red terrain, as sentiment turned down beat with the report that the India Meteorological Department (IMD) in its monsoon update highlighted that for the country as a whole, cumulative rainfall during this year’s monsoon so far (till 24 August 2016) was 2% below the long period average (LPA). Market extended their losses despite report that India Inc's overseas borrowings declining by 44 percent to $1.2 billion in July this year as against $2.14 billion in the same period a year ago, indicating slowdown in capital expenditure (capex) plans by many major firms.  Indian firms raised $183.7 million via approval route, while rest $1.02 billion was raised by way of automatic channel. Cautious prevail in the market ahead of a speech by US Federal Reserve chair Janet Yellen in Jackson Hole, Wyoming later in the day. In last leg of trade, Nifty trimmed some of its losses but failed to regain its green terrain and ended in negative territory with a cut of around quarter a percent.

On global front, European stocks were mostly lower, weighed down by fall in healthcare and retail shares, while Asian markets ended mixed on Friday, with investors preferring to sit on the sidelines ahead of US Federal Reserve Chairman Janet Yellen's speech for cues on the timing of the next policy rate hike.

The top gainers from the F&O segment were Century Textiles & Industries, Tata Motors and Reliance Communications. On the other hand, the top losers were IDBI Bank, Jaiprakash Associates and Indiabulls Real Estate. In the index options segment, maximum OI was being seen in the 8400-9000 calls and 8400-8600 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility addition by 2.15% and reached 13.57. The 50-share Nifty was down by 19.65 points or 0.23% to settle at 8,572.55

Nifty September 2016 futures closed at 8625.00 on Friday at a premium of 52.45 points over spot closing of 8,572.55, while Nifty October 2016 futures ended at 8664.90 at a premium of 92.35 points over spot closing. Nifty September futures saw addition of 0.91 million (mn) units, taking the total outstanding open interest (OI) to 27.29 million (mn) units. The near month derivatives contract will expire on September 29, 2016.

From the most active contracts, Reliance Communications September 2016 futures traded at a premium of 0.50 points at 54.40 compared with spot closing of 53.90. The numbers of contracts traded were 10,114.

State Bank of India September 2016 futures traded at a premium of 2.10 points at 248.45 compared with spot closing of 246.35. The numbers of contracts traded were 12,445.

Tata Motors September 2016 futures traded at a discount of 7.85 points at 506.40 compared with spot closing of 514.25. The numbers of contracts traded were 39,239.

Reliance Industries September 2016 futures traded at a premium of 7.80 points at 1034.40 compared with spot closing of 1,026.60. The numbers of contracts traded were 12,248.   

Infosys September 2016 futures traded at a premium of 8.40 points at 1028.10 compared with spot closing of 1,019.70. The numbers of contracts traded were 9,291.   

Among Nifty calls, 8700 SP from the September month expiry was the most active call with a addition of 0.64 million open interests. Among Nifty puts, 8600 SP from the September month expiry was the most active put with an addition of 0.60 million open interests. The maximum OI outstanding for Calls was at 9000 SP (4.10 mn) and that for Puts was at 8500 SP (4.85 mn). The respective Support and Resistance levels of Nifty are: Resistance 8614.48--- Pivot Point 8581.02--- Support --- 8539.08.     

The Nifty Put Call Ratio (PCR) finally stood at 1.09 for September month contract. The top five scrips with highest PCR on OI were M&MFIN (2.31), M&M (1.44), GRASIM (1.33), APOLLOHOSP (1.20) and AMARAJABAT (1.18).   

Among most active underlying Tata Motors witnessed an addition of 1.60 million of Open Interest in the September month futures contract, followed State Bank of India witnessing an addition of 2.24 million of Open Interest in the September month contract, Biocon witnessed a addition  of 0.44 million of Open Interest in the September month contract, Reliance Industries witnessed an addition  of 0.05 million of Open Interest in the September month contract and LT witnessed an addition  of 0.70 million units of Open Interest in the September month's future contract.