Nifty extends gain for fourth consecutive session; closes above 8200 level

The fifty stock index -- Nifty -- continued its bull run for fourth straight session and finished the excellent day of trade with a gain of over a percent, reclaiming its crucial 8,200 level on continued buying by domestic institutional investors amid expectations of positive GDP data to be released later in the day. Besides, firm global cues coupled with the appreciation in rupee value against the dollar too added to the optimistic sentiments. Some support also came with a private report indicating that government is expected to meet its fiscal deficit target of 3 percent for the next financial year on account of additional revenue from penalty on black money and deposits under the income disclosure.

The top gainers from the F&O segment were Ceat, Jaiprakash Associates and Crompton Greaves. On the other hand, the top losers were IDFC Bank, Idea Cellular and Apollo Hospitals Enterprise. In the index option segment, maximum OI continues to be seen in the 8000-8600 calls and 7500-8000 puts indicating this is the trading range expectation. In today's session, the 8400, 8600 and 8700 Call strikes saw addition of 3.73, 1.40 and 2.04 lakh shares, respectively. On the other hand, 8300, 8200 and 8100 Put strikes saw addition of 2.01, 3.23 and 4.82 lakh shares, respectively.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.84% and reached 16.85. The 50-share Nifty was up by 82.35 points or 1.01% to settle at 8,224.50.

Nifty December 2016 futures closed at 8260.35 on Wednesday at a premium of 35.85 points over spot closing of 8224.50, while Nifty January 2017 futures ended at 8294.60 at a premium of 70.10 points over spot closing. Nifty December futures saw an addition of 0.51 million (mn) units, taking the total outstanding open interest (OI) to 15.60 million (mn) units. The near month derivatives contract will expire on December 29, 2016.

From the most active contracts, ICICI Bank December 2016 futures traded at a premium of 0.55 points at 266.10 compared with spot closing of 265.55. The numbers of contracts traded were 16,749.

Maruti December 2016 futures traded at a premium of 12.20 points at 5278.20 compared with spot closing of 5266.00. The numbers of contracts traded were 15,122.

State Bank of India December 2016 futures traded at a premium of 1.40 points at 259.75 compared with spot closing of 258.35. The numbers of contracts traded were 13,762.

UltraTech Cement December 2016 futures traded at a discount of 15.30 points at 3588.15 compared with spot closing of 3603.45. The numbers of contracts traded were 12,455.

Axis Bank December 2016 futures traded at a premium of 2.45 points at 472.30 compared with spot closing of 469.85. The numbers of contracts traded were 12,070.  

Among Nifty calls, 8300 SP from the December month expiry was the most active call with a contraction of 0.02 million open interests. Among Nifty puts, 8000 SP from the December month expiry was the most active put with an addition of 0.17 million open interests. The maximum OI outstanding for Calls was at 8300 SP (4.25 mn) and that for Puts was at 8000 SP (7.56 mn). The respective Support and Resistance levels of Nifty are: Resistance 8259.42 --- Pivot Point 8199.33 --- Support --- 8164.42.             

The Nifty Put Call Ratio (PCR) finally stood at 1.16 for December month contract. The top five scrips with highest PCR on OI were Hero MotoCorp (1.91), Ajanta Pharma (1.45), KPIT (1.32), Maruti Suzuki (1.32) and UltraTech Cement (1.17).   

Among most active underlying, Maruti Suzuki India witnessed a contraction of 0.02 million of Open Interest in the December month futures contract, followed by Vedanta witnessing a contraction of 1.78 million of Open Interest in the December month contract, State Bank of India witnessed a contraction of 0.48 million of Open Interest in the December month contract, ICICI Bank witnessed a contraction of 4.10 million of Open Interest in the December month contract and Tata Steel witnessed an addition of 0.10 million units of Open Interest in the November month's future contract.