Thursday 6 September 2018

Sensex, Nifty Set To Open On A Positive Note Volatility Expected To Persist

Posted by suhani varma on Thursday, September 06, 2018 with No comments

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SGX Nifty is currently trading 34 points up at 11538. For today, expect bouts of buying/selling with volatility being the theme as markets dance to rupee movements.

The oversold conditions may prevail for another few days as rupee weakness will see foreign investors sell aggressively. On Wednesday, Nifty had another weak session with the index down almost 125 points before strong institutional buying emerged, which lead to short covering and the index closed lower by 40 points.

Global markets: Asian indices opened weak after a near drubbing in the yesterday's session as the emerging market contagion sees chaos prevail. The Hang Seng index lost nearly 3% to record its worst fall in 3 months as sentiment turned bearish in most emerging markets. For today, expect some more consolidation with early morning weakness being bought into.

US Markets: Dow Jones closes in the green even as Nasdaq falls over 1% as emerging market contagion hits technology stocks. Oil prices cool off further with US bond yields also seeing uptick at 2.89%. 'No place to hide' as the US dollar strength decimates all emerging market currencies leading to chaotic situation.

FII Data: In the yesterday’s trading session, FIIs sold 383cr stock in the cash market, whereas DIIs bought 176cr worth of stock. In the derivative market, FIIs sold 2328cr of Index futures and bought 4399cr worth of Index options. In the Stock futures segment, FIIs sold 314cr worth of stock futures and sold 32cr stock options.

FII View: In the yesterday’s trading session, FII created bearish positions in the derivative market, which is deduced by the fact that they created 31345 short contracts in Index Futures, while simultaneously creating 44978 long contracts in Index Put Options. The long short ration in Index Futures since the start of the September series currently stands at 0.6, which is a bearish indication.

FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long137371.10.6
Index Short1303281
Index Call Long20512281.90.7
Index Call Short1061692
Index Put Long33615572.11.2
Index Put Short161228

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