After seesawing between the green and red territory for most part of the day’s trade, domestic benchmark CNX S&P -- Nifty -- snapped Friday’s trading session with a gain of around a percent on account of late hour buying. Market made a cautious start and traded slightly in green on the back of encouraging industrial growth data. The Central Statistics Office’s data showed that India's industrial output rose 4.3% in July, as against 2% in June. Traders took some solace with a report that Reserve Bank of India is expected to go for a further rate cut in the next month's monetary policy review as inflation is expected to pan out in line with the central bank's projection. After that, market traded with negative bias, as some mild weakness came with the report that the International Monetary Fund’s (IMF) statement that India's economic growth is much weaker than expected, attributing the reasons for corporate and environmental regulatory uncertainty and lingering weaknesses in some non-bank financial companies. Sentiments remained down-beat amid the report that government data showing that consumer price index-based inflation (CPI) for August crept up slightly to 3.21% year-on-year, compared with 3.15% in July, driven by a sharp rise in food prices.
However, market made a smart recovery in the last leg of the session to touch intraday high point, as sentiment got a boost with the report that commerce and industry minister Piyush Goyal’s statement that government would soon announce guidelines for extending foreign exchange credit to exporters. Such foreign exchange loans will be made available to exporters at very competitive rates, likely to be lower than even 4%.
Most of the NSE sectoral indices ended in green, except Pharma. The top gainers from the F&O segment Bharat Petroleum Corporation, Indian Oil Corporation and Motherson Sumi Systems. On the other hand, the top losers were Glenmark Pharmaceuticals, Piramal Enterprises and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 10,800 - 11,300 calls and 10,700 - 10,900 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 5.23% and reached 14.12.The 50 share Nifty was up by 93.10 points or 0.85% to settle at 11,075.90.
Among, Nifty calls, 11,000 SP from the September month expiry was the most active call with a contraction of 0.30 million open interests. Among Nifty puts, 11,000 from the September month expiry was the most active put with an addition of 0.24 million open interests. The maximum OI outstanding for Calls was at 11,200 SP (2.62 mn) and that for Puts was at 10,800 SP (3.18 mn). The respective Support and Resistance levels of Nifty are: Resistance 11,124.98 -- Pivot Point 11,035.37 -- Support -- 10,986.28.
The Nifty Put Call Ratio (PCR) finally stood at 1.18 for September month contract. The top five scrips with highest PCR on Shree Cement (3.00), Hindalco Industries (1.65), Ramco Cements (1.62), Muthoot Finance (1.35) and Hero Motocorp (1.30).
Among most active underlying, State Bank of India witnessed an addition of 4.54 million units of Open Interest in the September month futures contract, followed by Reliance Industries witnessing an addition of 0.76 million units of Open Interest in the September month contract, Maruti Suzuki India witnessed an addition of 0.06 million units of Open Interest in the September month contract, ICICI Bank witnessed an addition of 3.30 million units of Open Interest in the September month contract and Axis Bank witnessed an addition of 2.64 million units of Open Interest in the September month future contract.
