SGX Nifty is at 10,591, down 56 points. For today, we expect more consolidation on the Nifty as it sees smart rebound from recent lows with mid caps out performing.
Yesterday, Nifty saw a sharp recovery from the mid session lows of 10489 to close near the highs of 10637. The intra day recovery was led by financials, FMCG and IT, while pharma and metals met with selling pressure. The higher volatility was also attributed to derivative contracts expiry due this Thursday.
Global markets: Asian indices opened with minor gains as the Japanese Nikkei traded up by 100 points. Most asian indices recorded smart gains yesterday in anticipation of US indices pull back with the Hang Seng up nearly 2%. For today, we expect consolidation as most investors will be eyeing the trade talks between US-China Presidents’ on Friday even as early rhetoric from President Trump on imposition of higher tariffs on cell phones from China could see some stock specific reaction today.
US markets: US indices bounce back as crude oil rallies with stocks seeing value buying from over sold territory. Crucial US-China meet this Friday on trade talks could set the agenda for a early Christmas rally next week globally as stocks offer immense value after steep correction.
FII/DII Data: In yesterday’s trading session FIIs bought 62cr stock in the cash market whereas DIIs bought 351cr worth of stock. In the derivative market, FIIs sold 167cr of Index futures and bought 1821cr worth of Index options. In the Stock futures segment, FIIs bought 475cr worth of stock futures and sold 126cr stock options.
FII View: Marginally bearish positions were created by FIIs in yesterday’s trading session in Index Futures which is deduced by the fact that they created 6000 net short contracts however, they built 14488 fresh long contracts in Index Call Options.
| FII | OI (in000's) | % Chg | % Chg Since Expiry | Long/ Short Ratio | Long/Short Since Expiry |
| Index Long | 194 | 6 | 121 | 0.7 | 1.8 |
| Index Short | 265 | 7 | 24 | ||
| Index Call Long | 308 | 5 | 88 | 3.0 | 1.0 |
| Index Call Short | 104 | (8) | 85 | ||
| Index Put Long | 443 | (1) | 88 | 2.2 | 0.9 |
| Index Put Short | 198 | (3) | 112 |
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