Friday 23 March 2018

Markets Set To Open Gap Down As Trade Wars Escalate

Posted by suhani varma on Friday, March 23, 2018 with No comments



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SGX Nifty currently trading 1.16% lowerSGX Nifty is currently trading at 10,001 down 116 points.
Indian markets are expected to see a continuation of the selling pressure, as global markets witness steep cuts on account of a potential trade war as both US and China imposed tariffs against each other.

Global markets
Major Asian markets are trading in the red at present Nikkei is down 3.67%, Hang Seng is down 3.31% while Shanghai Composite is trading 2.21% lower.

US Markets: Stocks witnessed heavy selling pressure in yesterday’s session with the major averages ending near the low point of the day.

The Dow plunged 2.9% to 23,957.89, the Nasdaq dipped 2.4% to 7,166.68 while the S&P 500 cracked 2.5% to 2,643.69.

The selloff was witnessed after President Donald Trump announced tariffs on at least $50 billion worth of Chinese imports. 

European markets also cracked yesterday with FTSE closing 1.24% lower, CAC dipped 1.4% while DAX ended 01.73 lower%. 

FII Data: 
In yesterday’s trading session, FII’s bought 161 crores stock in the cash market whereas DII’s bought 409 crores worth of stock. In the derivative market, FII’s bought 224 crores of Index futures and bought 2,103 crores worth of Index options. In the Stock futures segment, FII’s bought 611 crores worth of stock futures and bought 191 crores stock options.

FII View:
FII trading activity in yesterday’s session suggests that they continue to have a bearish view on the market in the short term which is deduced from the fact that they reduced 11,802 short contracts in Index put options, while they simultaneously created 2,424 short contracts in Index Futures.
FII
OI(000's)
% Chg
% Chg Since Expiry
Long/Short Ratio
Long/Short Since Expiry
Future Index Long
126
4
83
0.7
0.7
Future Index Short
180
1
155
Option Index Call Long
229
(1)
55
1.4
0.8
Option Index Call Short
168
(1)
99
Option Index Put Long
389
(1)
63
2.7
1.2
Option Index Put Short
145
(8)
37
Support / Resistance: Intraday
Nifty: 10114
S1 – 10040
S2-9980
R1- 10220
R2 -10280

Support / Resistance: Intraday
Bank Nifty: 24141
S1 – 24000
S2-23800
R1 - 24380
R2 -24500


Nifty Highest Open Interest:
Call: 10500 / Put: 10000


Bank Nifty Highest Open interest: (28th March 2018 Expiry)
Call: 25000 / Put: 24000


Stocks in Ban Period: HDIL, IDBI, IFCI, JETAIRWAYS, JINDALSTEL, JPASSOCIAT, RCOM

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