Wednesday 12 September 2018

Sensex, Nifty Set To Open On A Flat Note Ahead Of Weekly Bank Nifty Expiry

Posted by suhani varma on Wednesday, September 12, 2018 with No comments

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SGX Nifty is currently trading 12 points up at 11334. For today expect early morning blues to continue as leveraged positions are squared off with second half pull back on the cards. Investors will also remain cautious ahead of weekly Bank Nifty expiry.

Nifty had witnessed a sell-off for the second consecutive day with the index losing another 150 points. This is mainly due to rupee, which hit a record low during midsession, with foreign selling aggravating the sell-off. With the Nifty being an outperformer in the first week of September, we are now becoming the worst performing index both in currencies and equities in the second week of September.

Global markets: Asian indices opened flat with markets awaiting Chinese data, which would indicate manufacturing growth for the last quarter. The relentless selloff in China and Hong Kong has seen sentiment turn weak for whole of Asia ex Japan as markets factor in the aftermath of proposed tariff wars. Expect some more consolidation as markets now extremely over sold and ripe for a bounce.

US Markets: US indices closed higher as midsession rally spurs stocks higher. Oil prices rise with energy stocks also seeing buying interest, while Apple leads technology rally. The US dollar retraces gains even as emerging markets grapple with pain on currencies, bonds and equities.

FII Data: In yesterday’s trading session, FIIs sold 1454cr stock in the cash market, whereas DIIs purchased 750cr worth of stocks. In the derivative market, FIIs sold 1676cr of Index futures and bought 780cr worth of Index options. In the Stock futures segment, FIIs sold 351cr worth of stock futures and bought 12cr stock options.

FII View: In yesterday’s trading session, FII continued to create bearish positions in the derivative market, which is deduced by the fact that they created 13269 short contracts in Index Futures segment. Simultaneously they have created 4831 long contracts in Index Put Options and 13558 short contracts in Index call options. The net position remains on the short side, which is indicated by a long short ratio of 0.4x in Index Futures, since the start of September series.
FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long132(4)30.80.4
Index Short1728138
Index Call Long2386491.70.6
Index Call Short14211156
Index Put Long4131932.21.3
Index Put Short184(2)46

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