Nifty clocks fresh record close; ends above 10,150 mark

The local benchmark Nifty settled the session at its record closing high on Monday with gains of more than half a per cent. The index opened on an optimistic note and traded jubilantly to clock fresh record high, as investors continued taking support with the private report that India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector. Adding to the optimism, India’s external debt came down by $ 13.1 billion or 2.7 percent to $ 471.9 billion at the end of March this year on annual basis mainly due to decrease in NRI deposits and commercial borrowings. Besides, Union Human Resource Minister Prakash Javadekar’s statement that the central government has saved Rs 65,000 crore through Direct Benefit Transfer (DBT) in various public schemes, too contributed to the gains. Meanwhile, India’s forex reserves have now surpassed $400 billion. As per the most recent RBI data, India's forex reserves stood at $ 400.726 billion in the week ended September 8 on account of rise in foreign currency assets.

Traders were seen piling up positions in Auto, Media and Metal stocks, while selling was witnessed only in PSU Banking stocks. The top gainers from the F&O segment were Infibeam Incorporation, Dewan Housing Finance Corporation and Just Dial. On the other hand, the top losers were Jaiprakash Associates, Indiabulls Real Estate and Divi's Laboratories. In the index option segment, maximum OI continues to be seen in the 9900-10500 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 2.01% and reached 11.44. The 50-share Nifty was up by 67.70 points or 0.67% to settle at 10,153.10.

Nifty September 2017 futures closed at 10175.30 on Monday at a premium of 22.20 points over spot closing of 10153.10, while Nifty October 2017 futures ended at 10206.80 at a premium of 53.70 points over spot closing. Nifty September futures saw a contraction of 0.48 million (mn) units, taking the total outstanding open interest (OI) to 20.46 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 premium of 5.90 points at 837.45 compared with spot closing of 831.55. The numbers of contracts traded were 21,536.

Tata Motors September 2017 futures traded at a premium of 2.40 points at 406.85 compared with spot closing of 404.45. The numbers of contracts traded were 14,736.

Axis Bank September 2017 futures traded at a premium of 0.45 points at 523.55 compared with spot closing of 523.10. The numbers of contracts traded were 12,802.

Sun Pharmaceutical Industries September 2017 futures traded at a premium of 1.70 points at 523.20 compared with spot closing of 521.50. The numbers of contracts traded were 11,565.

Vedanta September 2017 futures traded at a discount of 0.15 points at 325.95 compared with spot closing of 326.10. The numbers of contracts traded were 10,511.

Among Nifty calls, 10200 SP from the September month expiry was the most active call with an addition of 0.51 million open interests. Among Nifty puts, 10100 SP from the September month expiry was the most active put with an addition of 0.27 million open interests. The maximum OI outstanding for Calls was at 10200 SP (5.39 mn) and that for Puts was at 10000 SP (6.17 mn). The respective Support and Resistance levels of Nifty are: Resistance 10172.77--- Pivot Point 10152.03--- Support --- 10132.37.

The Nifty Put Call Ratio (PCR) finally stood at 1.51 for September month contract. The top five scrips with highest PCR on OI were the Ramco Cements (2.31), Oracle Financial Services Software (1.81), Indiabulls Real Estate (1.71), Dewan Housing Finance Corporation (1.21) and HDFC Bank (1.16).Among most active underlying, Divi's Laboratories witnessed an addition of 0.02 million units of Open Interest in the September month futures contract, followed by Vedanta witnessing a contraction of 0.73 million units of Open Interest in the September month contract, Tata Motors witnessed an addition of 0.04 million units of Open Interest in the September month contract, Tata Steel witnessed an addition of  0.34 million units of Open Interest in the September month contract and Reliance Industries witnessed a contraction of 0.75 million units of Open Interest in the September month future contract.