Thursday 3 January 2019

Markets To Open Flat Ahead Of Weekly Bank Nifty Expiry

Posted by suhani varma on Thursday, January 03, 2019 with No comments

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SGX Nifty is at 10867, up 35 points. For today, we expect some consolidation after the huge fall in yesterday’s trade with selected mid caps seeing outperformance.

On Wednesday, the Nifty saw a weak session after almost 4 days of a rally as markets succumbed to the global cues. The rupee led a weakness as foreign investors sold stocks against the back drop of over 2-3% fall in the most Asian indices. Metals and auto saw huge unwinding as both indices fell ~3% on weak data for December and China slow down.

Global markets: Asian indices traded flat to mildly negative as Apple cut revenue guidance, which saw US futures traded lower. Caution would be the buzzword after the debacle of Chinese data disappointed the markets, where growth slowdown is evident. For today, we expect some pull back from the Chinese market as the government institutions to buy stocks, which could see headline indices recover.

US markets: US indices witnessed smart recovery from lows of the day as Dow Jones closed in the green after being down 400 points. Apple cuts earnings guidance on the back of Chinese slowdown, while oil prices see a smart rally. Bond yields hit 2.66% as markets are now pricing in 1 or no rate hike in 2019.

FII/DII Data: In yesterday’s trading session, FIIs sold 621cr stock in the cash market, whereas DIIs sold 226cr worth of stock. In the derivative market, FIIs sold 817cr of Index futures and bought 80cr worth of Index options. In the Stock futures segment, FIIs sold 970cr worth of stock futures and bought 93cr stock options.

FII View: FIIs created bearish positions in the derivative segment in yesterday’s trading session, which is deduced by the fact that they created 10700 net short contracts in Index Futures, while simultaneously creating 1046 net short contracts in Index Put Options.


FIIOI
(in000's)
% Chg% Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long1695151.11.0
Index Short1701318
Index Call Long1614224.81.2
Index Call Short381716
Index Put Long2936314.11.1
Index Put Short832336

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