Wednesday 28 February 2018

Markets Could Enter Into A Selling Mode As Global Indices Crack

Posted by suhani varma on Wednesday, February 28, 2018 with No comments



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SGX Nifty indicating a gap down opening for the Indian markets.

Indian markets are expected to witness selling pressure after comments from Federal Reserve Chairman Jerome Powell revived fears about more interest-rate hikes than anticipated.

In stock specific news according to media report, Dalmia Bharat-Piramal Bain consortium has emerged as the highest bidder for Binani Cement

Global markets
All the major Asian markets are trading in the red at present. Nikkei is currently down 0.53%, Hang Seng is trading 1.24% lower while Shanghai Composite is down 0.78%.

US Markets: Stocks came under selling pressure after witnessing a sharp rally in the previous two sessions. The major indices closed near their worst levels of the day.

The Dow closed 1.2% lower at 25,410.03, the Nasdaq slumped 1.2% to 7,330.35 and the S&P 500 dropped 1.3% lower to close at 2,744.28. Renewed interest rate concerns contributed to the pullback by stocks on the Wall Street.

European markets also ended in the red yesterday with the FTSE closing 0.10% lower, CAC ended 0.01% lower while the DAX dropped 0.29%.

FII Data:
In yesterday’s FII’s sold 906 crores in the cash market stock whereas DII’s bought 1046 crores worth of stock.

In the derivative market, FII’s bought 783 crores of index futures and bought 1016 crores worth of Index options.

In the stock futures segment, FII’s bought 428 crores worth of stock futures and bought 129 crores stock options.

FII View:
FII trading activity in yesterdays’ session suggests that they expect the market to surge higher in the short term as they continued to buy Index Futures contracts adding 8,592 contracts in yesterday’s session but they hedged their position by buying a substantial amount of Index Put options adding 11,796 contracts.

FII
OI(000's)
% Chg
% Chg Since Expiry
Long/Short Ratio
Long/Short Since Expiry
Future Index Long
91
10
31
1.1
1.2
Future Index Short
79
(0)
12
Option Index Call Long
193
2
31
2.2
1.2
Option Index Call Short
89
1
5
Option Index Put Long
294
4
23
2.4
1.1
Option Index Put Short
121
3
15
Support / Resistance: Intraday
Nifty: 10554
S1 – 10480
S2-10420
R1- 10620
R2 -10730
Support / Resistance: Intraday
Bank Nifty: 25383
S1 – 25000
S2-24800
R1 - 25700
R2 -25800
Nifty Highest Open Interest:
Call: 10700 / Put: 10400

Bank Nifty Highest Open interest: (1st March 2018 Expiry)
Call: 26000 / Put: 25000

Stocks in Ban Period: FORTIS, JPASSOCIAT, ORIENTBANK

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