Nifty snaps 3-day losing streak

The local equity benchmark Nifty snapped 3-day losing streak to end the session higher on Thursday, surpassing its psychological level of 11,500. The index started the day on positive note, aided by Finance Minister Arun Jaitley’s statement that there is no need to worry over the steep fall in the Indian rupee’s value against the US dollar as the inherent strength of the country’s economy will aid in arresting the downtrend. Besides, traders remained positive with a private report stating that Corporate India announced merger and acquisition (M&A) deals worth $34.8 billion during April-June this year, registering nearly 7-fold jump over the same period last year. Some relief also came after Finance Ministry simplified GST refund claim process for businesses.

During the session, the Nifty lost momentum and entered into red terrain, as rupee hits its all-time low. But the index once again recouped losses to entered into positive zone, on the back of firm opening in European markets. The street got comfort with a private report that companies are willing to raise their staff level, and the pace of hiring is expected to be faster than last year, riding high on strong demand conditions. The market participant took note of the Securities and Exchange Board of India’s (SEBI) statement that it would review an order tightening rules on foreign funds ownership by entities of Indian origin, after some fund managers said it could lead to massive dollar outflows.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.02% and reached 13.79. The 50-share Nifty was up by 59.95 points or 0.52% to settle at 11,536.90.

Nifty September 2018 futures closed at 11567.15 on Thursday, at a premium of 30.25 points over spot closing of 11536.90, while Nifty October 2018 futures ended at 11609.85, at a premium of 72.95 points over spot closing.  Nifty September futures saw an addition of 0.86 million (mn) units, taking the total outstanding open interest (OI) to 27.70 mn units. The near month derivatives contract will expire on September 27, 2018.

From the most active contracts, Reliance Industries September 2018 futures traded at a premium of 4.70 points at 1265.70 compared with spot closing of 1261.00. The numbers of contracts traded were 34,232.

Aurobindo Pharma September 2018 futures traded at a premium of 2.25 points at 764.20 compared with spot closing of 761.95. The numbers of contracts traded were 33,676.

Tata Motors September 2018 futures traded at a premium of 3.10 points at 271.75 compared with spot closing of 268.65. The numbers of contracts traded were 22,681.

Zee Entertainment Enterprises September 2018 futures traded at a premium of 2.25 points at 472.95 compared with spot closing of 470.70. The numbers of contracts traded were 21,052.

Yes Bank September 2018 futures traded at a premium of 1.75 points at 340.85 compared with spot closing of 339.10. The numbers of contracts traded were 18,743.

Among Nifty calls, 11600 SP from the August month expiry was the most active call with an addition of 0.05 million open interests. Among Nifty puts, 11500 SP from the August month expiry was the most active put with an addition of 0.48 million open interests. The maximum OI outstanding for Calls was at 11,800 SP (4.17mn) and that for Puts was at 11,400 SP (4.46mn). The respective Support and Resistance levels of Nifty are: Resistance 11,587.42 ---- Pivot Point 11,511.73 --- Support --- 11,461.22.

The Nifty Put Call Ratio (PCR) finally stood at 1.14 for August month contract. The top five scrips with highest PCR on OI were Repco Home Finance (1.71), Axis Bank (1.24), Dewan Housing Finance Corporation (1.09), Shree Cement (1.00) and Infibeam Avenues (0.95).

Among most active underlying, Reliance Industries witnessed an addition of 0.09 million units of Open Interest in the September month futures contract, followed by Aurobindo Pharma witnessing an addition of 1.78 million units of Open Interest in the September month contract, State Bank of India witnessed an addition of 1.82 million units of Open Interest in the September month contract, Maruti Suzuki India witnessed an addition of 0.20 million units of Open Interest in the September month contract and Axis Bank witnessed a contraction of 0.002 million units of Open Interest in the September month future contract.