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SGX Nifty is at 10815, up 100 points. We expect another gap up opening for derivative contracts on the last day of expiry, as we end the November series at the highest point of the month.
On Wednesday, Nifty saw a strong session led by fresh bouts of buying from foreign investors, who bought stocks aggressively as rupee got stronger with the recent bout of oil weakness. Expiry related volatility saw IT stocks outperform led by Infosys and TCS.
Global markets: Asian indices opened with gains as the overnight Federal Reserve Chairman commentary on moderation in rate hikes push most indices higher. The real effect of a weaker dollar could see huge gains for emerging markets ex-Japan as investors chase higher returns. Emerging markets could also doubly benefit from a stronger currency and lower oil prices.
US markets: US indices jump over 2% as Federal Reserve sounds dovish on rate hikes going forward. Bond yields fall along with the dollar as investors rush to buy stocks. US oil inventories also witnessed gains, which sees crude prices fall below $59 and adds to stock outperformance.
FII/DII Data: In the yesterday’s trading session, FIIs bought 961cr stock in the cash market, whereas DIIs sold 330cr worth of stock. In the derivative market, FIIs bought 1067cr of Index futures and sold 95cr worth of Index options. In the Stock futures segment, FIIs sold 570cr worth of stock futures and purchased 105cr in stock options.
FII View: FIIs created bullish position in the Index Futures segment, which is deduced by the fact that they created 4920 fresh long contracts, while simultaneously reducing 8760 short contracts. However, considering the volatility in the market they also purchased 22494 long contracts in Index Put Options.
FII | OI (in000's) | % Chg | % Chg Since Expiry | Long/ Short Ratio | Long/Short Since Expiry |
Index Long | 189 | 3 | 114 | 0.7 | 1.8 |
Index Short | 257 | (3) | 20 | ||
Index Call Long | 272 | (8) | 66 | 3.1 | 1.1 |
Index Call Short | 87 | (8) | 56 | ||
Index Put Long | 456 | 5 | 93 | 2.3 | 0.9 |
Index Put Short | 203 | 5 | 117 |
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