Wednesday 5 December 2018

SGX Nifty Indicates Negative Opening For Markets Ahead Of RBI Monetary Policy Meet

Posted by suhani varma on Wednesday, December 05, 2018 with No comments

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SGX Nifty is at 10870, down 43 points. For today, we expect higher volatility as weak global cues see fear dominate early trade. Metals, banks and industrial stocks would be under pressure with FMCG and IT seeing safe haven buying.

On Tuesday, Nifty saw a flat session with the index closing down 15 points as banks saw selling pressure. The markets would react negatively to the overnight huge selloff in the US coupled with the Reserve Bank India’s (RBI) meeting today on interest rates.

Global markets: Asian indices traded in the red on the back of the US indices witnessing the sharpest fall in over two months overnight. This is on fear of growth slowdown in the global market, which saw the gap narrow on the bond yields. Oil prices also gave up gains after being up almost 3%. For today, all eyes will be on the Chinese markets and how they react to the US rhetoric on trade talks going ahead.

US markets: stocks in the US saw huge selloff as most investors doubt sustenance of trade talks between the US and China. The other major concern was the indication of slowdown in the US economy as was seen in the sharpening of the yield curve with the spread between the 2 year and 10 year bonds narrowing.

FII/DII Data: In yesterday’s trading session, FIIs sold 55cr stock in the cash market, whereas DIIs sold 521cr worth of stock. In the derivative market, FIIs bought 37crs of Index futures and bought 747cr worth of Index options. In the Stock futures segment, FIIs sold 399cr worth of stock futures and sold 168cr stock options.

FII View: FIIs created marginally bearish positions in the derivative segment in the yesterday’s trading session, which is deduced by the fact that they created 1833 net short contracts in Index Futures, while simultaneously creating 5878 long contracts in Index Put Options.

FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1564121.11.0
Index Short145610
Index Call Long2274182.40.8
Index Call Short95(0)49
Index Put Long3052212.30.9
Index Put Short130129

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