Firm global cues take Nifty above 8,700 mark

Buoyed by firm global cues, the Indian benchmark index -- Nifty-- traded jubilantly on Tuesday and finished the session near intraday highs with a gain of above one and half percent. After a gap up opening, there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong stocks. Sentiments remained up-beat with Reserve Bank of India stating that the near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 percent in 2016-17. Besides, Niti Aayog Vice-Chairman Arvind Panagariya added that India’s economy will accelerate to 8% growth in the current financial year thanks to a good monsoon, policy reforms and PM Narendra Modi’s focus on implementation at the grassroots’ level. He also expects private investment doing better this year. Some support also came with appreciation in rupee.

On global front, European markets were trading in green in early deals with stocks in Germany and France gaining the most, while stocks in the UK were flat after trading resumed after a holiday on Monday. Asian shares bounced modestly on Tuesday, as doubts the US Federal Reserve would hike interest rates next month restrained the dollar, while investors continued to count on more policy stimulus elsewhere in the world.

The top gainers from the F&O segment were Oriental Bank of Commerce, Allahabad Bank and the India Cements Limited. On the other hand, the top losers were Bharti Airtel, Indo Count Industries and Just Dial. In the index options segment, maximum OI was being seen in the 8700-9000 calls and 8400-8800 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility contraction by 1.10% and reached 13.02. The 50-share Nifty was up by 136.90 points or 1.59% to settle at 8,744.35

Nifty September 2016 futures closed at 8794.60 on Tuesday at a premium of 50.25 points over spot closing of 8,744.35, while Nifty October 2016 futures ended at 8833.25 at a premium of 88.90 points over spot closing. Nifty September futures saw addition of 2.68 million (mn) units, taking the total outstanding open interest (OI) to 30.45 million (mn) units. The near month derivatives contract will expire on September 29, 2016.

From the most active contracts, State Bank of India September 2016 futures traded at a premium of 1.85 points at 254.05 compared with spot closing of 252.20. The numbers of contracts traded were 13,069.

ICICI Bank September 2016 futures traded at a premium of 1.30 points at 257.20 compared with spot closing of 255.90. The numbers of contracts traded were 12,470.

DLF September 2016 futures traded at a premium of 1.30 points at 163.40 compared with spot closing of 162.10. The numbers of contracts traded were 11,610.

HDFC Bank September 2016 futures traded at a premium of 5.75 points at 1276.25 compared with spot closing of 1,270.50. The numbers of contracts traded were 10,751.   

Tata Motors September 2016 futures traded at a premium of 2.70 points at 532.50 compared with spot closing of 529.80. The numbers of contracts traded were 10,715.   

Among Nifty calls, 8800 SP from the September month expiry was the most active call with a addition of 0.08 million open interests. Among Nifty puts, 8600 SP from the September month expiry was the most active put with an addition of 1.43 million open interests. The maximum OI outstanding for Calls was at 9000 SP (5.23 mn) and that for Puts was at 8500 SP (6.10 mn). The respective Support and Resistance levels of Nifty are: Resistance 8782.55--- Pivot Point 8712.40--- Support --- 8674.20.             

The Nifty Put Call Ratio (PCR) finally stood at 1.16 for September month contract. The top five scrips with highest PCR on OI were M&M (1.20), TATAMOTORS (1.11), GRASIM  (1.09), APOLLOHOSP (1.09) and M&MFIN (1.07).   

Among most active underlying Maruti Suzuki India witnessed an addition of 0.20 million of Open Interest in the September month futures contract, followed Reliance Industries witnessing an addition of 0.06 million of Open Interest in the September month contract, State Bank of India witnessed a addition  of 1.80 million of Open Interest in the September month contract, Yes Bank witnessed an addition  of 0.73 million of Open Interest in the September month contract and DLF witnessed an contraction  of 0.98 million units of Open Interest in the September month's future contract.