Tuesday, 3 April 2018

Markets Indicate Negative Opening As Global Trade Wars Escalate

Posted by suhani varma on Tuesday, April 03, 2018 with No comments



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SGX Nifty indicates a gap down opening. Indian markets are expected to trade with a negative bias in today’s trade as global equities witness correction after China announced it is imposing tariffs on 128 imported goods originating in the US.

Global markets
Major Asian markets are trading in the red. At the time of filing, Nikkei was down 0.91%, Hang Seng was down 1.04%, while Shanghai Composite was trading 0.90% lower.

FTSE 100 contracts also fell. The dollar was marginally weaker and Treasuries were steady. Oil held losses and industrial metals were higher in London.

US Markets: Stocks witnessed a sharp correction in yesterday’s trade with the Nasdaq and the S&P 500 falling to their lowest closing levels in almost two months. The Dow dipped 1.9% to 23,644.19, the Nasdaq corrected 2.7% to 6,870.12 and the S&P 500 ended 2.2% lower at 2,581.88. The sell-off on Wall Street was witnessed due to escalating trade spat between the United States and China. A sharp correction was also witnessed in the shares of Amazon after US President Donald Trump once again attacked the online retail giant on Twitter.

European markets were shut yesterday.

FII Data: In yesterday’s trading session, FII’s sold stocks worth Rs689cr, while DII’s bought Rs413cr worth of stock. In the derivative market, FII’s bought Rs59cr of Index futures and bought Rs2,525cr worth of Index options. In the Stock futures segment, FII’s bought Rs1,172cr worth of stock futures and bought Rs4cr stock options.

FII View: FII trading activity in Wednesdays’ session suggests that they have a bullish view on the market in the short term, which is deduced from the fact that they reduced 1,712 short contracts in Index Futures while they created 23,709 long contracts in Index Call Options.

FII
OI(000's)
% Chg
% Chg Since Expiry
Long/Short Ratio
Long/Short Since Expiry
Future Index Long
32
1
1
0.2
1.0
Future Index Short
140
(1)
(1)
Option Index Call Long
168
16
16
1.8
1.1
Option Index Call Short
95
4
4
Option Index Put Long
305
5
5
2.9
1.0
Option Index Put Short
104
3
3
Support / Resistance: Intraday
Nifty: 10211
S1 – 10150
S2-10090
R1- 10240
R2 -10330
Support / Resistance: Intraday
Bank Nifty: 24328
S1 – 24050
S2-23800
R1 - 24500
R2 -24740


Nifty Highest Open Interest:
Call: 11000 / Put: 10000


Bank Nifty Highest Open interest: (5th April 2018 Expiry)

Call: 25000 / Put: 24000

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