Friday 5 October 2018

Gap-Down Opening For Sensex Nifty Ahead Of RBI Policy Meet

Posted by suhani varma on Friday, October 05, 2018 with No comments


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SGX Nifty is currently 51 points down at 10,553 levels. For today, investors will keep a close watch on the Reserve Bank India’s monetary policy. Markets can see another weak opening, which should get bought into as markets now treading extremely over sold zone and ripe for a pull back.

In the yesterday’s session, Nifty had its worst fall in the year as the index fell nearly 2.5% as heavyweights like Reliance, HDFC Bank, and TCS dragged the index down over 250 points. This is because rupee hit fresh all time lows and foreign investors sold stock across the board. The chaos was also felt in the mid and small cap section, where leveraged positions were squared off as margin calls triggered further selling.

Global markets: Asian indices opened in the red led by the Japanese Nikkei as weak sentiment and rising bond yields saw flight to safety with the US dollar and Japanese Yen being chased by investors. The US-China trade tariff war is seeing a huge weakness in Chinese stocks.

US markets: Rising yields seen a huge bout of profit booking in US stocks as Nasdaq tumbles over 1.75%. Yields hit 3.2% highest in last 7 years as the US economic growth beats estimates. Oil falls as US inventories rise sharply while, emerging markets continue to feel the pain.

FII Data: In the yesterday’s trading session, FIIs sold 2760cr stock in the cash market, whereas DIIs bought 1823cr worth of stock. In the derivative market, FIIs sold 3156cr of Index futures and bought 8509cr worth of Index options. In the Stock futures segment, FIIs sold 365cr worth of stock futures and bought 67cr stock options.

FII View: In the yesterday’s trading session, FII created bearish positions in the Derivative segment, which is deduced by the fact that they created 32875 fresh short contracts in Index Futures while, simultaneously creating 36512 long contracts in Index Put Options.
FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long100(4)60.60.8
Index Short1562740
Index Call Long202(7)71.40.6
Index Call Short1421774
Index Put Long33612322.61.0
Index Put Short130(3)30
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