Positive global cues help Nifty to settle above 8800 level

Buoyed by firm global cues the Indian benchmark -- Nifty -- ended in green, recapturing its crucial 8,800 mark. After making a positive start, market turned flat in early deals as traders remained on sidelines ahead of US non-farm payrolls data, which will be released later today. However, it regained strength in last leg of trade as traders took some encouragement with the Chief Economic Adviser Arvind Subramanian stated that India has potential to grow at 8-10%, or even faster, a day after the government reported a 7.1% expansion in April-June GDP, the slowest in five quarters. Some support came after Union Finance Minister Arun Jaitley said India is protected from all the political and economic challenges that the world is facing and it provides immense opportunity for the country to grow further. The country’s economic growth is better than many of its peers and is in a sweet spot. Sentiments also remained upbeat after International Monetary Fund (IMF) in its surveillance note stated that Indian economy is likely to continue to grow strongly, crediting its latest assessment to support from private consumption and saying that the GST will provide a further boost when it is rolled out. Positive opening in European counterparts too provided strength to domestic market, European shares rose, as investors waited key US jobs data later in the day for clues about the Federal Reserve’s next interest rate hike.

Back home, auto stocks witnessed buying interest in trades on Friday after Maruti Suzuki and Tata Motors logged robust monthly sales figures. Maruti Suzuki, Mahindra & Mahindra, Tata Motors and Hero MotoCorp jumped over a percent each, while Bharti Airtel and Idea Cellular, which faced intense selling pressure in Friday's session after Reliance Industries announced its foray in to the telecom sector, rebounded sharply.

The top gainers from the F&O segment were CEAT, Apollo Tyres and MRF. On the other hand, the top losers were Kaveri Seed Company, Jindal Steel & Power and Coal India. In the index options segment, maximum OI was being seen in the 8800-9000 calls and 8600-9000 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility contraction by 3.00% and reached 12.94. The 50-share Nifty was up by 35 points or 0.40% to settle at 8,809.65

Nifty September 2016 futures closed at 8840.15 on Friday at a premium of 30.50 points over spot closing of 8,809.65, while Nifty October 2016 futures ended at 8879.50 at a premium of 69.85 points over spot closing. Nifty September futures saw contraction of 0.45 million (mn) units, taking the total outstanding open interest (OI) to 33.16 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 0.65 points at 255.25 compared with spot closing of 254.60. The numbers of contracts traded were 11,232.

Idea Cellular September 2016 futures traded at a discount of 0.55 points at 83.80 compared with spot closing of 84.35. The numbers of contracts traded were 18,251.

Axis Bank September 2016 futures traded at a premium of 3.60 points at 602.85 compared with spot closing of 599.25. The numbers of contracts traded were 10,193.

Bharti Airtel September 2016 futures traded at a premium of 0.40 points at 317.65 compared with spot closing of 317.25. The numbers of contracts traded were 17,979.   

Tata Motors September 2016 futures traded at a premium of 3.05 points at 552.55 compared with spot closing of 549.50. The numbers of contracts traded were 12,276.   

Among Nifty calls, 8900 SP from the September month expiry was the most active call with a contraction of 0.03 million open interests. Among Nifty puts, 8800 SP from the September month expiry was the most active put with an addition of 0.21 million open interests. The maximum OI outstanding for Calls was at 9000 SP (6.03 mn) and that for Puts was at 8600 SP (6.97 mn). The respective Support and Resistance levels of Nifty are: Resistance 8833.10--- Pivot Point 8800.65--- Support --- 8777.20.             

The Nifty Put Call Ratio (PCR) finally stood at 1.25 for September month contract. The top five scrips with highest PCR on OI were MRF (7.00), TATAMOTORS (1.31), ULTRACEMCO (1.16), MARUTI (1.12) and AXISBANK (1.04).   

Among most active underlying Reliance Industries witnessed an addition of 1.06 million of Open Interest in the September month futures contract, followed Reliance Infrastructure witnessing an addition of 0.29 million of Open Interest in the September month contract, Idea Cellular witnessed a addition  of 1.61 million of Open Interest in the September month contract, Maruti Suzuki India witnessed an contraction  of 0.03 million of Open Interest in the September month contract and Tata Motors witnessed an contraction  of 0.77 million units of Open Interest in the September month's future contract.