Tuesday 25 September 2018

Sensex, Nifty Set To Open On A Flat Note Crude Hits Fresh 4 Year High

Posted by suhani varma on Tuesday, September 25, 2018 with No comments

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SGX Nifty is currently trading 19 points up at 11046. For today, a strong bounce back can be seen from the broader market, which is extremely over sold with selected heavyweights also joining in.

In the previous session, Nifty had another weak day with the count reaching 7th consecutive day of losses as rupee, banks and NBFCs reeled under selling pressure. The IL&FS fiasco has seen short term money market instruments under pressure with mutual fund redemption in fixed income adding to the chaos.

Global markets: Asian indices opened marginally in the green led by the Japanese Nikkei, which is in sight of its 52 week high even as the US indices ended with losses. The Japanese index has slowly but surely inched up as metals, energy, and consumption stocks edge higher. For today, expect consolidation as we see Asia ex-Japan indices edge higher ahead of the Federal Reserve meet today on rates.

US markets: Dow Jones closed with losses as President Donald Trump’s legal team head offers to resign, adding volatility with politics. Nasdaq recovers from early losses to close in the green as technology stocks see value buying. Trump signed first trade deal with South Korea and opened room for further dialogue with North Korea.

FII Data: In yesterday’s trading session, FIIs resumed their selling spree in the cash market selling positions worth 523cr, whereas DIIs bought 1527cr worth of stock. In the derivative market, FIIs bought 522cr of Index futures and bought 212cr worth of Index options. In the Stock futures segment, FIIs sold 1309cr worth of stock futures and sold 1cr stock options.

FII View: In yesterday’s trading session, FII created marginal bullish positions which is deduced by the fact that they created 1126 long contracts, while simultaneously reducing 5775 short contracts in the Index Futures segment. Considering the volatility they also purchased 26964 long contracts in Index Put options. However, the net position continues to remain on the short side, which is indicated by a long short ratio of 0.5x in Index Futures, since the start of the September series.
FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1571220.90.5
Index Short165(3)129
Index Call Long2557591.40.5
Index Call Short18621237
Index Put Long43471032.41.4
Index Put Short178241

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