Tuesday 20 November 2018

Markets To Open Marginally Down In-Line With Asian Peers

Posted by suhani varma on Tuesday, November 20, 2018 with No comments

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SGX Nifty is at 10,746, down 36 points. For today, we expect volatility as global cues turn weak, however buying will be seen on falls as both the Finance Ministry & Reserve Bank of India reconcile their minor differences.

Yesterday, Nifty ended the day at the highs of the session & also above the 200 day moving average (DMA) at 10,750. The return of foreign buying is seeing large cap stocks outperform as valuations & improving macros make Indian equities very attractive. Rupee hit 3-month highs while foreign buying in November has been the best in over 6 months.

Global markets: Asian indices opened weak taking cues from the big sell-off in the US markets overnight with the US $ weakness seeing stronger Japanese Yen, which hurt Japanese exporters. The US markets easing off with $ seeing weakness could see funds now buy emerging markets as valuations & currency headwinds now turn positive for most. We expect more flows towards china as most weak macros are now all priced in & the Chinese financials look extremely attractive.

US markets: US indices end with deep losses as Apple supply chain sees slow down & leads to technology stocks getting re-rated on the downside. Oil prices ease as supply overhang keeps bears in control.US bond yields fall as money exits equities & buys debt while US$ also sees weakness creep in.

FII/DII Data: In yesterday’s trading session, FIIs bought 1103cr stock in the cash market whereas DIIs sold 310cr worth of stock. In the derivative market, FIIs bought 860cr of Index futures and sold 1745cr worth of Index options. In the Stock futures segment, FIIs bought 34cr worth of stock futures and sold 105cr stock options.

FII View: Bullish positions continued to be created by FIIs; in yesterday’s trading session they created 9806 long contracts in Index Futures while simultaneously creating 13217 short contracts in Index Put Options.

FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long18561100.71.7
Index Short268026
Index Call Long3153922.60.9
Index Call Short12017113
Index Put Long417(2)771.90.8
Index Put Short2157131

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