Wednesday, 1 August 2018

Markets Set To Open At Record Highs Ahead Of RBI Monetary Policy

Posted by suhani varma on Wednesday, August 01, 2018 with No comments


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SGX Nifty is currently trading in the green up 22 points at 11399.

Markets are set to continue the bullish momentum with all the major indices trading at record highs. The rally in the markets has sustained due to the strong set of earnings posted by frontline companies and broad-based participation witnessed in the last few trading session. Apollo Tyres, Pidilite, and Tata Global are some of the large-cap companies set to announce their Q1 results today.

On the domestic front, we have the RBI monetary policy meeting scheduled at 2:30 pm which will be keenly tracked by the market participant to see whether the MPC raises rates for the second consecutive time.

Major Asian markets are trading with a positive bias at present; Nikkei is up 0.49%, Hang Seng is up 0.55%, while Shanghai Composite is trading 0.11% higher.

US Markets: Stocks posted strong gains in yesterday’s session. The Dow rose 0.4% to 25,415.19, the Nasdaq advanced 0.6% to 7,671.79 and the S&P 500 gained 0.5% to 2,816.29.The rally on Wall Street came following a report from Bloomberg indicating the U.S. and China are trying to restart talks aimed at averting a full-blown trade war.

European markets also closed in the green yesterday with the FTSE up 0.62%; CAC was up 0.36% while DAX closed 0.06% higher.

FII Data: In yesterday’s trading session, FIIs bought 572 crores stock in the cash market whereas DIIs sold 290 crores worth of stock. In the derivative market, FIIs bought 65 crores of Index futures and bought 149 crores worth of Index options. In the Stock futures segment, FIIs bought 611 crores worth of stock futures and bought 287 crores stock options.

FII View: In yesterday’s trading session, FII created bullish positions in the derivatives market which is deduced by the fact that they created 3909 long contracts in Index Futures. They also hedged their positions to a certain extent by purchasing 12957 long contracts in Index Put options. However, the net position in the current series remains on the long side which is indicated by the long-short ratio in Index Futures which currently stands at 1.4x.

FIIOI
(in000's)
% Chg% Chg 
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1473241.41.0
Index Short105324
Index Call Long1722193.51.0
Index Call Short491424
Index Put Long248672.00.8
Index Put Short121742
 
Support / Resistance: IntradayNifty: 11356
S1 – 11250S2-11180
R1-  11375R2 -11420
 
Support / Resistance: IntradayBank Nifty: 27764
S1 – 27600S2-27400
R1 - 28000R2 -28200


Nifty Highest Open Interest:
Call: 11500 / Put: 11000
Bank Nifty Highest Open interest: (2nd Aug 2018 Expiry)
Call: 28000 / Put: 27500
Securities in Ban Period: Nil
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