Nifty ends at all time high; surpasses 9650 level

After a four-day consolidation, the local benchmark -- Nifty -- gained momentum to trade bullish on Friday and ended the session at fresh high on the back of positive global cues. Investors took support with NITI Aayog vice chairman Arvind Panagariya’s statement that India's 'fragile economy' has been turned around in the last three years and a sustained growth of 8 percent would now be possible within a few years. Some support also came with Moody's Investors Service’s latest report that a number of wide-ranging reforms initiated by the government would gradually ease the country's high debt burden, if implemented successfully. The agency further noted that demonetization and financial inclusion efforts will help broaden the tax base, while expenditure reforms will enhance spending efficiency and the Aadhaar identification system can help reduce fiscal leakage. Besides, strong sales numbers for May posted by auto majors and the private report stating that Indian SMEs are more positive about the domestic economy over the next 12 months than their Asian counterparts, also bolstered trading sentiments.

Traders were seen piling up positions in FMCG, Pharma and Realty stocks, while selling was witnessed only in Metal stocks. The top gainers from the F&O segment were GMR Infrastructure, Mahindra & Mahindra Financial Services and Hindustan Construction Company. On the other hand, the top losers were Sintex Industries, Fortis Healthcare and Power Finance Corporation. In the index option segment, maximum OI continues to be seen in the 9400-10000 calls and 9000-9600 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 4.40% and reached 10.81. The 50-share Nifty was up by 37.40 points or 0.39% to settle at 9,653.50.

Nifty June 2017 futures closed at 9652.60 on Friday at a discount of 0.90 points over spot closing of 9653.50, while Nifty July 2017 futures ended at 9672.40, at a premium of 18.90 points over spot closing. Nifty June futures saw a contraction of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 22.14 million (mn) units. The near month derivatives contract will expire on June 29, 2017.

From the most active contracts, Yes Bank June 2017 futures traded at a premium of 6.45 points at 1484.45 compared with spot closing of 1478.00. The numbers of contracts traded were 17,683.

GMR Infrastructure June 2017 futures traded at a premium of 0.20 points at 17.00 compared with spot closing of 16.80. The numbers of contracts traded were 16,884.

Sun Pharmaceutical Industries June 2017 futures traded at a premium of 2.45 points at 517.40 compared with spot closing of 514.95. The numbers of contracts traded were 11,703.

Reliance Industries June 2017 futures traded at a premium of 7.90 points at 1330.80 compared with spot closing of 1322.90. The numbers of contracts traded were 11,539.

State Bank of India June 2017 futures traded at a premium of 1.60 points at 288.80 compared with spot closing of 287.20. The numbers of contracts traded were 11,229.

Among Nifty calls, 9700 SP from the June month expiry was the most active call with an addition of 0.35 million open interests. Among Nifty puts, 9600 SP from the June month expiry was the most active put with an addition of 0.95 million open interests. The maximum OI outstanding for Calls was at 9700 SP (4.92 mn) and that for Puts was at 9400 SP (6.00 mn). The respective Support and Resistance levels of Nifty are: Resistance 9672.18--- Pivot Point 9654.82--- Support --- 9636.13.

The Nifty Put Call Ratio (PCR) finally stood at 1.15 for June month contract. The top five scrips with highest PCR on OI were V-Guard Industries (3.33), Amara Raja Batteries (2.69), Raymond (1.17), Engineers India (1.14) and Indraprastha Gas (1.13).

Among most active underlying, GMR Infrastructure witnessed an addition of 23.89 million units of Open Interest in the June month futures contract, followed by Tata Steel witnessing an addition of 0.57 million units of Open Interest in the June  month contract, State Bank of India witnessed an addition of 2.16 million units of Open Interest in the June month contract, Yes Bank witnessed a contraction of 1.06 million units of Open Interest in the June  month future contract and Reliance Industries  witnessed a contraction of 0.20 million units of Open Interest in the June month future contract.