Thursday 25 October 2018

SGX Nifty Indicates Gap Down Opening After Heavy SellOff In US Equities

Posted by suhani varma on Thursday, October 25, 2018 with No comments


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SGX Nifty is currently trading at 10,130, down 107 points. For today, expect oil, bond yields, and rupee to see value-related buying in select stocks; however, global cues will be a sentiment dampener.

Yesterday, Nifty had another volatile session with intraday movements of over 160 points on the downside followed by a pullback of over 100 points on the upside. Derivative expiry related volatility will see culmination of the most volatile series this year as the October series ends today.

Global markets: Asian indices opened weak following an overnight selloff in the US with the Japanese 'Nikkei' down nearly 700 points in early trade. Asian indices were in correction mode much before the US selloff as rising interest rates, threat of tariff wars having an impact on corporate earnings all added to the weakness. For today, expect final culmination of the recent correction as bonds and oil also fall in sync.

US markets: US stocks collapsed as rising rates will hurt corporate earnings with Dow Jones falling over 2.5%. Nasdaq slipped into correction mode as the index fall nearly 4.5% and corrected 12% from recent highs. Oil fell to $75, while bond yields corrected to 3.1% as money exited equities and found shelter in bonds.

FII/DII Data: In yesterday’s trading session, FIIs sold 2,046cr stock in the cash market, whereas DIIs bought 1,873cr worth of stock. In the derivative market, FIIs bought 613cr of Index futures and bought 820cr worth of Index options. In the Stock futures segment, FIIs bought 537cr worth of stock futures and bought 207cr stock options.

FII View: FII created marginally bullish positions in the Index Futures segment, which is indicated by the fact that they created net 8,131 fresh long contracts, while simultaneously creating 9,287 long contracts in Index Call options. However, the long-short ratio in Index Futures currently stands at 0.7x since the start of the October series indicating net bearish positions.
 FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long13923470.60.7
Index Short2289105
Index Call Long2744451.30.6
Index Call Short2052151
Index Put Long406(2)592.61.0
Index Put Short157(10)57

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