Nifty ends higher; reclaims 9,950 mark

Reclaiming its 9950 mark, the local benchmark -- Nifty -- ended the session on a strong note on the back of firm global cues. The market pared gains in the afternoon deals but buying in second half of the day helped Nifty end in green. Sentiments remained upbeat with Prime Minister Narendra Modi’s statement at BRICS Summit 2017 that India is fast changing into one of the most open economies in the world, with improvements on global indices and the biggest ever reform GST weaving the nation into one unified market. Some support also came with Union minister Suresh Prabhu’s statement that the Commerce and Industry Ministry will soon bring in a policy framework for facilitating access to global markets for the Indian agriculture produce. Investors paid no heed towards CRISIL’s report which lowered its growth forecast to 7% for fiscal 2018, down from 7.4% earlier, as it sees disruptions arising from the implementation of the new uniform tax regime to continue to impact the economy for a few more quarters. Besides, traders also shrugged off the report which showed that India's Services PMI remained in contraction territory at 47.5 in August month.

Traders were seen piling up positions in Realty, Metal and Media stocks, while selling was witnessed only in Pharma stocks. The top gainers from the F&O segment were Reliance Capital, Jain Irrigation Systems and Gujarat State Fertilizers & Chemicals. On the other hand, the top losers were Idea Cellular, Bharti Airtel and Oracle Financial Services Software.  In the index option segment, maximum OI continues to be seen in the 9800-10500 calls and 9400-10000 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 2.11% and reached 12.88. The 50-share Nifty was up by 39.35 points or 0.40% to settle at 9,952.20.

Nifty September 2017 futures closed at 9971.60 on Tuesday at a premium of 19.40 points over spot closing of 9952.20, while Nifty October 2017 futures ended at 9999.45 at a premium of 47.25 points over spot closing. Nifty September futures saw an addition of 0.71 million (mn) units, taking the total outstanding open interest (OI) to 18.16 mn units. The near month derivatives contract will expire on September 28, 2017.

From the most active contracts, Reliance Capital September 2017 futures traded at a discount of 6.00 points at 743.95 compared with spot closing of 749.95. The numbers of contracts traded were 21,668.

Dewan Housing Finance Corporation September 2017 futures traded at a premium of 2.95 points at 552.75 compared with spot closing of 549.80. The numbers of contracts traded were 19,667.

Reliance Industries September 2017 futures traded at a premium of 1.95 points at 1634.10 compared with spot closing of 1632.15. The numbers of contracts traded were 19,562.

Sun TV Network September 2017 futures traded at a premium of 5.30 points at 829.70 compared with spot closing of 824.40. The numbers of contracts traded were 11,494.

Sun Pharmaceutical Industries September 2017 futures traded at a premium of 1.10 points at 491.20 compared with spot closing of 490.10. The numbers of contracts traded were 11,447.

Among Nifty calls, 10000 SP from the September month expiry was the most active call with a contraction of 0.29 million open interests. Among Nifty puts, 9900 SP from the September month expiry was the most active put with an addition of 0.49 million open interests. The maximum OI outstanding for Calls was at 10000 SP (4.17 mn) and that for Puts was at 9700 SP (4.63 mn). The respective Support and Resistance levels of Nifty are: Resistance 9976.52--- Pivot Point 9938.78--- Support --- 9914.47.

The Nifty Put Call Ratio (PCR) finally stood at 1.12 for September month contract. The top five scrips with highest PCR on OI were KPIT Technologies (2.58), Indiabulls Real Estate (2.19), InterGlobe Aviation (1.36), Container Corporation of India (1.12) and DCB Bank (1.08).

 
Among most active underlying, Reliance Capital witnessed an addition of 4.39 million units of Open Interest in the September month futures contract, followed by Reliance Industries witnessing an addition of 1.33 million units of Open Interest in the September month contract, Dewan Housing Finance Corporation witnessed an addition of 1.46 million units of Open Interest in the September month contract, Vedanta witnessed an addition  of 1.04 million units of Open Interest in the September month contract and Tata Steel witnessed an addition of 0.34 million units of Open Interest in the September month future contract.