Nifty closes above 10K mark

Indian equity benchmark -- Nifty -- ended the session above 10,000 mark on Monday, with gains of more than 0.70 percent. The index traded on a firm note throughout the day with taking support from the outcome of the crucial meeting of the Goods and Services Tax (GST) Council that took place on Saturday, where the council cut GST rate for over 40 items of mass consumption. Some support also came with the Federation of Indian Export Organizations’ (FIEO) statement that the decision of the GST Council to reduce the rate on supply of various scrips from 12 per cent to 5 per cent, will give a boost to the exports sector. Adding to the gains, the private report stated that India’s trade deficit is expected to improve in August to about USD 10.3 billion from USD 11.5 billion in July, largely on moderation in export as well as import growth. Investors paid no heed to the report stating that India’s retail inflation is expected to have picked up to a five-month high in August, largely driven by higher food costs. Besides, traders also shrugged off report that the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) have dropped to a five year low of Rs 1.35 lakh crore at the end of July, due to tough rules put in place by Securities and Exchange Board of India (SEBI).

Traders were seen piling up positions in Realty, Metal and Financial Services stocks, while selling was witnessed only in Pharma and PSU Banking stocks. The top gainers from the F&O segment were PTC India, Petronet LNG and Jubilant Foodworks. On the other hand, the top losers were Jaiprakash Associates, Cadila Healthcare and SREI Infrastructure Finance. 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 4.65% and reached 12.36. The 50-share Nifty was up by 71.25 points or 0.72% to settle at 10,006.05.

Nifty September 2017 futures closed at 10025.90 on Monday at a premium of 19.85 points over spot closing of 10006.05, while Nifty October 2017 futures ended at 10057.45 at a premium of 51.40 points over spot closing. Nifty September futures saw an addition of 0.33 million (mn) units, taking the total outstanding open interest (OI) to 19.77 mn units. The near month derivatives contract will expire on September 28, 2017.

From the most active contracts, Bharat Financial Inclusion September 2017 futures traded at a premium of 0.55 points at 967.60 compared with spot closing of 967.05. The numbers of contracts traded were 25,154.

Yes Bank September 2017 futures traded at a discount of 1.95 points at 1844.05 compared with spot closing of 1846.00. The numbers of contracts traded were 22,731.

IndusInd Bank September 2017 futures traded at a discount of 1.60 points at 1788.40 compared with spot closing of 1790.00. The numbers of contracts traded were 15,433.

HDFC Bank September 2017 futures traded at a discount of 9.90 points at 1812.10 compared with spot closing of 1822.00. The numbers of contracts traded were 13,708.

Maruti Suzuki India September 2017 futures traded at a premium of 5.40 points at 8149.40 compared with spot closing of 8144.00. The numbers of contracts traded were 12,385.

Among Nifty calls, 10000 SP from the September month expiry was the most active call with a contraction of 0.84 million open interests. Among Nifty puts, 9900 SP from the September month expiry was the most active put with an addition of 0.42 million open interests. The maximum OI outstanding for Calls was at 10000 SP (3.88 mn) and that for Puts was at 9900 SP (5.60 mn). The respective Support and Resistance levels of Nifty are: Resistance 10033.53--- Pivot Point 10001.17--- Support --- 9973.68.

The Nifty Put Call Ratio (PCR) finally stood at 1.24 for September month contract. The top five scrips with highest PCR on OI were KPIT Technologies (2.70), Indiabulls Real Estate (2.27), Container Corporation of India (1.51), Maruti Suzuki India (1.23) and Dewan Housing Finance Corporation (1.21).

Among most active underlying, Maruti Suzuki India  witnessed an addition of 0.01 million units of Open Interest in the September month futures contract, followed by Bharat Financial Inclusion witnessing a contraction of 0.73 million units of Open Interest in the September month contract, IndusInd Bank witnessed an addition of 0.58 million units of Open Interest in the September month contract, Yes Bank witnessed an addition  of  0.11 million units of Open Interest in the September month contract and Vedanta witnessed an addition of 0.49 million units of Open Interest in the September month future contract.