Nifty rises for fourth straight session; ends just shy of 10,100 mark

Indian equity benchmark -- Nifty -- closed the trading day on a higher note on Tuesday for fourth straight session ahead of August CPI inflation and July IIP data, slated to be released later in the day. After witnessing a positive start, the index continued its northward journey till the end of session, as traders continued to take encouragement with report that Direct Tax collections in the first five months of the current fiscal grew 17.5 percent to Rs 2.24 lakh crore, mainly on account of income tax mop-up from individuals. Some support also came with Former Reserve Bank of India (RBI) governor Raghuram Rajan’s statement that reviving stalled projects and a thrust on infrastructure will be the key to India reaching the 8% economic growth in the short-term. Sentiments also got some support from report that government was expecting a double-digit improvement in India's rank in the global index on ease of doing business, likely to be announced by the World Bank next month, based on the feedback shared by the multinational organization. Adding to the optimism, global rating agency ARC Ratings, in its latest report has affirmed the ‘BBB+’ rating to the India and maintained a stable outlook on expectation of a strong economic growth. The rating agency also affirmed its ‘A-’ foreign currency and ‘A’ local currency country ceilings for the country.

All the sectoral indices on the NSE ended in green.The top gainers from the F&O segment were Divi's Laboratories, KPIT Technologies and Adani Power. On the other hand, the top losers were IndusInd Bank, Jubilant Foodworks and CG Power and Industrial Solutions. In the index option segment, maximum OI continues to be seen in the 9800-10500 calls and 9500-10100 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 4.87% and reached 11.75. The 50-share Nifty was up by 87.00 points or 0.87% to settle at 10,093.05.

Nifty September 2017 futures closed at 10107.90 on Tuesday at a premium of 14.85 points over spot closing of 10093.05, while Nifty October 2017 futures ended at 10137.05 at a premium of 44.00 points over spot closing. Nifty September futures saw an addition of 0.17 million (mn) units, taking the total outstanding open interest (OI) to 19.93 mn units. The near month derivatives contract will expire on September 28, 2017.

From the most active contracts, Divi's Laboratories September 2017 futures traded at a discount of 8.55 points at 797.20 compared with spot closing of 805.75. The numbers of contracts traded were 23,759.

Tata Steel September 2017 futures traded at a premium of 5.00 points at 685.90 compared with spot closing of 680.90. The numbers of contracts traded were 19,914.

Sun Pharmaceutical Industries September 2017 futures traded at a discount of 1.10 points at 482.35 compared with spot closing of 483.45. The numbers of contracts traded were 13,974.

Tata Motors September 2017 futures traded at a premium of 0.50 points at 389.05 compared with spot closing of 388.55. The numbers of contracts traded were 13,766.

Yes Bank September 2017 futures traded at a premium of 2.05 points at 1855.05 compared with spot closing of 1853.00. The numbers of contracts traded were 13,083.

Among Nifty calls, 10100 SP from the September month expiry was the most active call with a contraction of 0.06 million open interests. Among Nifty puts, 10000 SP from the September month expiry was the most active put with an addition of 1.06 million open interests. The maximum OI outstanding for Calls was at 10200 SP (3.83mn) and that for Puts was at 9900 SP (6.31 mn). The respective Support and Resistance levels of Nifty are: Resistance 10117.72--- Pivot Point 10072.88--- Support --- 10048.22.

The Nifty Put Call Ratio (PCR) finally stood at 1.35 for September month contract. The top five scrips with highest PCR on OI were Indiabulls Real Estate (2.17), Dewan Housing Finance Corporation (1.22), Maruti Suzuki India (1.20), Power Grid Corporation of India (1.15) and Container Corporation of India (1.14).

Among most active underlying, Tata Steel witnessed an addition of 0.69 million units of Open Interest in the September month futures contract, followed by Divi's Laboratories witnessing an addition of 0.37 million units of Open Interest in the September month contract, Maruti Suzuki India witnessed a contraction of 0.06 million units of Open Interest in the September month contract, State Bank of India witnessed an addition  of  0.74 million units of Open Interest in the September month contract and Vedanta witnessed a contraction of 0.47 million units of Open Interest in the September month future contract.