Monday 24 September 2018

Sensex, Nifty Set To Open On A Negative Note As Crude Climbs Near Two Month High

Posted by suhani varma on Monday, September 24, 2018 with No comments

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SGX Nifty is currently trading 21 points down at 11199. For today expect more caution as US Central bank is expected to hike rates, which will set the tone for Asian bankers going forward.

In the previous session, Nifty had another roller coaster ride with the index gyrating almost 500 points in intraday swings as short term money markets saw aberrations in yields rising sharply. NBFC’s bore the brunt of the sell-off with select stocks seeing almost 50% falls. The panic was quickly bought into by both local and foreign institutions as the fear lead to sharp liquidation in prices of select blue chips.

Global markets: Asian indices opened in the red as after a stellar last week the looming uncertainty of tariffs imposition could see volatility. The undertone remains buy on declines as the US economy leading from the front with global growth being the theme.

US markets: Dow Jones closed at fresh highs, however, broader market sees profit booking with Nasdaq losing 0.5%. Oil prices ignore the US President Donald Trump rhetoric and continue to rise. Crucial week is ahead as trade tariff with China and Federal Reserve monitory policy to occupy prime place.

FII Data: In Fridays’ trading session, despite the heavy selling pressure FIIs and DII were net buyers. FIIs bought 760cr stock in the cash market, whereas DIIs bought 497cr worth of stock. In the derivative market, FIIs bought 1564cr of Index futures and sold 4740cr worth of Index options. In the stock futures segment, FIIs bought 615cr worth of stock futures and sold 285cr stock options.

FII View: In Friday’s trading session, FII created bullish positions in the derivative segment, which is deduced by the fact that they created 12765 fresh long contracts in Index Futures while simultaneously creating 8169 short contracts in Index Put Options. The net position however, 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 Long1559210.90.5
Index Short171(3)137
Index Call Long239(7)491.60.5
Index Call Short15312177
Index Put Long407(1)912.31.4
Index Put Short174538

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