Wednesday 5 September 2018

Sensex, Nifty Set To Open On A Flat Note Tracking Asian Stocks

Posted by suhani varma on Wednesday, September 05, 2018 with No comments

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SGX Nifty is currently trading 26 points down at 11557. For today, expect early morning blues to continue as over leveraged positions unwind, however, expect value buying to return in the broader market as stocks turn attractive after the sharp correction.

On Tuesday, Nifty had another volatile session with the benchmark closing down 0.5%. However, the real pain was in the mid cap stocks with the index losing 3%. With hardly any intervention by the Central Bank the rupee also was in free fall mode, which further escalated selling as leverage positions saw unwinding.

Global markets: Asian indices have opened flat to mildly negative on profit booking and as the emerging market carnage continues to mar sentiment. Oil prices cool off after Brent hits $79, while the US dollar strength continues to haunt emerging markets. For today, expect China to lead the way forward as smart money chases stocks after steep correction.

US Markets: The US markets recover from intraday losses to close flat as positive earnings see a value buying on declines. Emerging markets see no relief as carnage continues with currencies getting hit further. Risk of contagion increases even as Argentina approaches World Bank for bail out.

FII Data: In yesterday’s trading session, FIIs bought 32cr stock in the cash market, whereas DIIs sold 21cr worth of stock. In the derivative market, FIIs sold 335cr of Index futures and sold 387cr worth of Index options. In the Stock futures segment, FIIs sold 583cr worth of stock futures and sold 40cr stock options.

FII View: In yesterday’s trading session, FII continued to create created bearish positions in the derivative market, which is deduced by the fact that they created 7371 short contracts in Index Futures, while simultaneously creating 28945 long contracts in Index Put Options, and 15284 short contracts in Index Call Options.

FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long133241.30.8
Index Short99837
Index Call Long183(3)142.00.7
Index Call Short912065
Index Put Long29111361.81.1
Index Put Short157525

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