Monday 23 July 2018

Markets Set To Open On A Flat Note, Trade War Concerns Resurface

Posted by suhani varma on Monday, July 23, 2018 with No comments

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SGX Nifty is currently trading marginally higher, up 9 points at 11024. Traders would be hoping for the markets to continue the positive momentum witnessed in Friday's trading session. The tax cuts by the Finance Minister and simplification of filing returns in the latest GST council meeting would be a positive trigger for the markets, however, the global trade war concern is an overhang with President Donal Trump stating that the war is starting to escalate.

Global markets: Major Asian markets are trading mixed at present; Nikkei is down 1.28%, Hang Seng is up 0.05%, while Shanghai Composite is trading 0.44% lower.

US Markets: Stocks ended marginally in the red in Friday’s trading session. The Dow edged down less than a tenth of a percent to 25,058.12, the Nasdaq and S&P 500 corrected 0.1% to 7,820.20 and 2,801.83 respectively. The modest pullback on Wall Street came after President Donald Trump continued to urge the Federal Reserve to refrain from raising interest rates as well as looming trade war concerns between the US and China.

European markets too ended in the red on Friday with FTSE down 0.07%, CAC was down 0.35%, while DAX closed 0.99% lower.

FII Data: In Friday’s trading session, FIIs bought 310 crores stock in the cash market whereas DIIs sold 50 crores worth of stocks. In the derivative market, FIIs sold 985 crores of Index futures and sold 281 crores worth of Index options. In the Stock futures segment, FIIs bought 595 crores worth of stock futures and sold 327 crores stock options.

FII View: In Friday's trading session, FII built bearish position in the derivative market, which is deduced by the fact that they created 14365 short contracts in Index Futures. They also purchased 3786 long contracts in Index Put options. However, the net positions in the July series continue to remain on the long side, which is indicated by the long/short ratio, which currently stands at 2.2x

 FIIOI
(in000's)
% Chg% Chg 
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long17821411.22.2
Index Short1511110
Index Call Long1970311.80.9
Index Call Short111148
Index Put Long4221562.60.8
Index Put Short1644108
 
Support / Resistance: IntradayNifty: 11010
S1 – 10920S2-10870
R1-  11075R2 -11145
 
Support / Resistance: IntradayBank Nifty: 26873
S1 – 26600S2-26500
R1 - 27000R2 -27200


Nifty Highest Open Interest:
Call: 11100 / Put: 10800
Bank Nifty Highest Open interest: (26th July 2018 Expiry)
Call: 27500 / Put: 26500
Securities in Ban Period: ADANIENT, ADANIPOWER
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