Thursday 11 October 2018

Sensex, Nifty To Open Gap Down On Global Trade War Concerns

Posted by suhani varma on Thursday, October 11, 2018 with No comments


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SGX Nifty is currently 256 points down at 10224 levels. Equity benchmarks, Sensex and Nifty, may open on a negative note today as trade war concerns led to a sell-off in the global equities.

Meanwhile, TCS will be in focus as the company will annouce its Q2FY19 numbers today.

On Wednesday, the Nifty had a superb pull back from over sold territory with the index climbing over 160 points. The bank nifty outperformed, most indices with a 800 points rally, while the midcap 50 index jumped over 4%, its strongest rally ever. This came as SBI announced willingness to buy loans from NBFCs and ease their liquidity concerns. The rupee also saw small gains, which aided the sentiment, and was a combination of short covering and value buying.

Global markets: Asian indices opened deep in the red with the Japanese Nikkei plunging over 700 points in early trade. The much needed US stock correction was on the cards with most Asian markets trading down on concerns from the trade tariff wars and with China stock indices trading already in bear market territory. The US dollar also saw weakness, which coupled with fall in oil will see stock specific reaction from most Asian markets.

US markets: US stocks plunged the most, since February, as the Dow Jones index fell 830 points, while the Nasdaq dropped over 4%.The market angst against the ongoing trade war, which takes its toll as rising yields and fear of tariff escalation see sell-off in equities. Oil prices fall over 2.5% even as hurricane Micheal sees close down of 40% oil facilities in Gulf of Mexico.

FII/DII Data: In the yesterday’s trading session, FIIs sold 1096cr stock in the cash market, whereas DIIs bought 1892cr worth of stock. In the derivative market, FIIs sold 1486cr of Index futures and bought 1148cr worth of Index options. In the Stock futures segment, FIIs bought 2279cr worth of stock futures and sold 96cr stock options.

FII View: In the yesterday’s trading session, FII created bearish positions in the derivatives market, which is deduced by the fact that they created 18270 short contracts in Index Futures, while simultaneously creating 3859 long contracts in Index Put Options. The long-short ratio in Index Futures currently stands at 0.7x, since the start of the Oct series.

FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1051100.60.7
Index Short1851166
Index Call Long2281211.30.6
Index Call Short172(4)110
Index Put Long3761482.20.9
Index Put Short170170

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