Monday 24 December 2018

SGX Nifty Indicates Flat Opening For Markets As Global Turmoil Persists

Posted by suhani varma on Monday, December 24, 2018 with No comments

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SGX Nifty is at 10777, up 17 points. This holiday-shortened week should see higher than normal volatility as derivative contracts expiry coupled with global cues could see both sided movements on the index.

On Friday, the Nifty saw a sharp selloff on Friday as domestic mutual funds sold in anticipation of the global selloff and ahead of future contract expiry this Thursday. Nifty has been an outperformer in the global context with lower yields, stable rupee and fall in the crude oil all boding well for Indian stocks.

Global markets: Asian indices traded in flat as most Asian markets would be closed or trade with shortened days in the week as Christmas holiday sets in. The Australian index traded in the green as US futures showed a sharp recovery in early morning trade. With Chinese central bank announcing more liquidity infusion in 2019, expect some stability to return in financials and sentiment.

US markets: US stocks ended on Friday at the lows of the year with chaos reigning as President Trump threatens to remove Federal Reserve Chairman. Nasdaq enters the bear market as stocks fall with no bottom. WTI crude hits $45/barrel as slower growth globally sees over 40% fall from recent highs.

FII/DII Data: In Friday’s trading session, FIIs bought 134cr stock in the cash market, whereas DIIs sold 488cr worth of stock. In the derivative market, FIIs sold 315cr of Index futures and bought 1628cr worth of Index options. In the Stock futures segment, FIIs sold 1204cr worth of stock futures and sold 121cr stock options.

FII View: FIIs created bearish positions in Index Futures in Friday’s trading session, which is deduced by the fact that they created 3024 net short contracts in the segment, while simultaneously creating 19054 long contracts in Index Put Options. The long-short ratio in Index Futures currently stands at 0.8x since the start of the December series which is a bearish sign.


FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1901360.90.8
Index Short216263
Index Call Long247(0)282.40.8
Index Call Short101359
Index Put Long3935562.51.0
Index Put Short154(4)53

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