Monday 10 December 2018



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SGX Nifty is at 10,580, down 157 points. For today, we expect volatility to rise as we see markets open gap down with short covering & institutional buying holding the fort.

Nifty saw a sharp short covering rally late on Friday ahead of the exit polls with the Nifty gaining nearly 100 points to close @ 10700. The outlook today will be very weak as we have the double whammy of exit polls in favor of Congress & extremely weak global cues coupled with oil prices also seeing a rebound. Expect volatility to rise as we see markets open gap down with short covering & institutional buying holding the fort.

Global markets: Asian indices traded in a sea of red as China opposed the arrest of Huawei CEO with markets expecting further escalation of tensions.The sell-off on wall street is also adding to the woes of most Asian markets as sentiment turns weak. Expect Chinese markets to dictate the trend as Government institutions buy stocks to prevent any further collateral damage.

US markets: US stocks witness worst week since March as weaker than expected job numbers coupled with growing China tensions sees stocks sell-off on Friday. Oil prices stage come back as OPEC agrees to output cut which meets market expectations.

FII/DII Data: In Friday’s trading session FIIs sold 817cr stock in the cash market whereas DIIs bought 242cr worth of stock. In the derivative market, FIIs bought 616cr of Index futures and sold 227cr worth of Index options. In the Stock futures segment, FIIs bought 854cr worth of stock futures and bought 6cr stock options.

FII View: FIIs created bullish positions in the derivative segment in Friday’s trading session which is deduced by the fact that they created 7557 net long contracts in Index Futures while simultaneously creating 15187 short contracts in Index Put Options. However, the PCR ratio since the start Dec series currently stands at 0.8x which is a bearish sign.

FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1675200.90.8
Index Short190043
Index Call Long2271182.50.8
Index Call Short89(1)40
Index Put Long3053212.10.8
Index Put Short1441243

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