Nifty settles above 8,800 levels on firm global cues

The local benchmark -- Nifty -- traded in green throughout the day and ended the session with a gain of one third of a percent, recapturing its crucial 8,800 mark, ahead of central bank meetings in the United States and Japan this week. After a positive start, market hold on to its gains and traded in tight band till end of the session, as traders took some encouragement with DIPP Secretary Ramesh Abhishek’s statement that implementation of the goods and services tax (GST) is bound to be a game changer for India’s manufacturing sector and will enhance ease of doing business in the country. Some support also came with report that Finance Ministry officials are expected to pitch a ratings upgrade to Moody’s by stressing upon the various reform initiatives taken by the Narendra Modi government, including the GST, bankruptcy code and inflation targeting through the monetary policy committee, among others. Positive opening in European counterparts too provided strength to domestic market. European stocks rose on Monday after two straight weeks of losses, as oil prices bounced back from multi-week lows and investors looked ahead to the FOMC and BOJ decisions. Meanwhile, Asian shares ended mostly in green.

The top gainers from the F&O segment were CEAT, MRF and Indiabulls Real Estate. On the other hand, the top losers were Castrol India, Indo Count Industries and Jubilant Foodworks. In the index options segment, maximum OI was being seen in the 8800-8900 calls and 8600-8900 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility addition by 2.47% and reached 14.94. The 50-share Nifty was up by 28.55 points or 0.33% to settle at 8,808.40

Nifty September 2016 futures closed at 8832.10 on Monday at a premium of 23.70 points over spot closing of 8,808.40, while Nifty October 2016 futures ended at 8870.25 at a premium of 61.85 points over spot closing. Nifty September futures saw addition of 0.28 million (mn) units, taking the total outstanding open interest (OI) to 32.41 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 1.30 points at 256.80 compared with spot closing of 255.50. The numbers of contracts traded were 9,693.

ICICI Bank September 2016 futures traded at a premium of 0.75 points at 272.45 compared with spot closing of 271.70. The numbers of contracts traded were 10,425.

Axis Bank September 2016 futures traded at a premium of 1.70 points at 596.70 compared with spot closing of 595.00. The numbers of contracts traded were 9,493.

Tata Motors September 2016 futures traded at a discount of 0.20 points at 554.80 compared with spot closing of 555.00. The numbers of contracts traded were 8,873.   

Reliance Industries September 2016 futures traded at a premium of 1.40 points at 1084.15 compared with spot closing of 1,082.75. The numbers of contracts traded were 10,601.   

Among Nifty calls, 8900 SP from the September month expiry was the most active call with a addition of 0.17 million open interests. Among Nifty puts, 8800 SP from the September month expiry was the most active put with an addition of 0.48 million open interests. The maximum OI outstanding for Calls was at 8900 SP (5.32 mn) and that for Puts was at 8600 SP (5.75 mn). The respective Support and Resistance levels of Nifty are: Resistance 8830.40--- Pivot Point 8802.30--- Support --- 8780.30.             

The Nifty Put Call Ratio (PCR) finally stood at 1.26 for September month contract. The top five scrips with highest PCR on OI were MRF (2.67), GODREJCP (1.36), MARUTI (1.31), GRASIM (1.25) and CENTURYTEX (1.17).   

Among most active underlying Yes Bank witnessed an addition of 0.40 million of Open Interest in the September month futures contract, followed Maruti Suzuki India witnessing an contraction of 0.02 million of Open Interest in the September month contract, Reliance Industries witnessed a contraction  of 0.04 million of Open Interest in the September month contract, Reliance Capital witnessed an addition  of 0.40 million of Open Interest in the September month contract and Tata Steel witnessed an contraction  of 0.44 million units of Open Interest in the September month's future contract.