Thursday, 27 September 2018

Sensex, Nifty Set To Open On A Positive Note Ahead Of Sep Expiry

Posted by suhani varma on Thursday, September 27, 2018 with No comments

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SGX Nifty is currently trading 19 points up at 11122. For today, rupee may see strength on the back of import duty hikes, while consumption stocks to bear the pain.

In the previous session, Nifty had another volatile session with the index giving up morning gains to close in the red, down marginally. The expiry of derivative contracts today to see heightened volatility as bulls and bears grapple the crucial 11000 levels on the index.

Global markets: Asian indices opened muted with the Japanese Nikkei trading marginally in the red. The rate hikes by the US Fed was already discounted and expect more action from macro numbers to be released by China on manufacturing. This will have an impact on the indices going forward. The under tone remains buy as most expect earnings to be better than estimated.

US markets: Dow Jones closed in the red for the third consecutive session as Federal Reserve raises rates and indicates another hike in December. Financials see profit booking as yields hit 3.1%, while the US dollar consolidates. Gradual rate hikes to continue as the US economy gains strength as indicated by Federal Reserve Chairman.

FII Data: In yesterday’s trading session, FIIs sold 809cr stock in the cash market, whereas DIIs bought 1555cr worth of stock. In the derivative market, FIIs bought 279cr of Index futures and bought 1178cr worth of Index options. In the Stock futures segment, FIIs bought 706cr worth of stock futures and sold 83cr stock options.

FII View: In yesterday’s trading session, FII created marginal bullish positions in Index Futures segment, which is deduced by the fact that they created 4206 long contracts. However, considering the volatility in the market they also hedged their positions by purchasing 23142 long contracts in Index Put options. The net position also 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 Long1603250.90.5
Index Short1700136
Index Call Long2782731.30.4
Index Call Short2164290
Index Put Long46651182.71.6
Index Put Short174339

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