Nifty snaps four days gaining steak; breaches 8,800 mark

Snapping its four days winning streak, Indian benchmark index --Nifty-- finished the session on negative territory on Tuesday amid weak Asian cues and easing crude oil prices. Soon after flat-to-positive start, market entered into red terrain and never looked confident during the session to end near intraday lows, as investors remained cautious ahead of the policy meetings of central banks in Japan and the US. Sentiment remained dismal with the report that India's total external debt rose marginally by 2.2 percent to $485 billion at the end of March 2016, compared to that of $475 billion as of March 31, 2015, largely driven by private commercial borrowings and non-resident Indian (NRI) deposits. Beside, weakness in Indian rupee too dampened sentiment. The rupee was trading weak at 67.02 against the dollar, down by 6 paise from its previous close. Also traders shrugged off the IMD report stating that country’s long-period monsoon rainfall for the June to September period despite being 5% deficient is heading for a ‘normal’ performance.

On the global front, European stocks were trading mostly in green on Tuesday, even as energy stocks succumbed to selling pressure on the back of lower crude oil prices. Meanwhile, Asian markets ended mostly in red, as investors braced for key monetary policy decisions later in the day by the US Federal Reserve and the Bank of Japan.

The top gainers from the F&O segment were Castrol India, IFCI and Biocon. On the other hand, the top losers were Indiabulls Real Estate, Jubilant Foodworks and HDIL. In the index options segment, maximum OI was being seen in the 8700-9000 calls and 8500-8800 puts.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility contraction by 1.07% and reached 14.78. The 50-share Nifty was down by 32.50 points or 0.37% to settle at 8,775.90

Nifty September 2016 futures closed at 8807.20 on Tuesday at a premium of 31.30 points over spot closing of 8,775.90, while Nifty October 2016 futures ended at 8846.35 at a premium of 70.45 points over spot closing. Nifty September futures saw contraction of 0.12 million (mn) units, taking the total outstanding open interest (OI) to 32.29 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 1.60 points at 255.45 compared with spot closing of 253.85. The numbers of contracts traded were 8,565.

ICICI Bank September 2016 futures traded at a premium of 0.10 points at 272.60 compared with spot closing of 272.50. The numbers of contracts traded were 9,708.

Tata Motors September 2016 futures traded at a premium of 1.75 points at 548.65 compared with spot closing of 546.90. The numbers of contracts traded were 9,794.

Tata Steel September 2016 futures traded at a premium of 1.65 points at 366.90 compared with spot closing of 365.25. The numbers of contracts traded were 13,833.   

Reliance Industries September 2016 futures traded at a premium of 5.40 points at 1078.95 compared with spot closing of 1,073.55. The numbers of contracts traded were 8,726.   

Among Nifty calls, 8800 SP from the September month expiry was the most active call with a addition of 0.25 million open interests. Among Nifty puts, 8800 SP from the September month expiry was the most active put with an addition of 0.32 million open interests. The maximum OI outstanding for Calls was at 9000 SP (5.84 mn) and that for Puts was at 8500 SP (6.43 mn). The respective Support and Resistance levels of Nifty are: Resistance 8808.47--- Pivot Point 8783.88--- Support --- 8751.32.             

The Nifty Put Call Ratio (PCR) finally stood at 1.23 for September month contract. The top five scrips with highest PCR on OI were MRF (2.33), GODREJCP (1.25), MARUTI (1.22), CENTURYTEX (1.13) and GRASIM (1.13).   

Among most active underlying Yes Bank witnessed an contraction of 0.49 million of Open Interest in the September month futures contract, followed Castrol witnessing an addition of 3.49 million of Open Interest in the September month contract, Tata Steel witnessed a addition  of 0.44 million of Open Interest in the September month contract, Maruti Suzuki India witnessed an contraction  of 0.05 million of Open Interest in the September month contract and Reliance Infrastructure witnessed an contraction  of 0.03 million units of Open Interest in the September month's future contract.