Wednesday 27 February 2019

SGX Nifty Indicates A Positive Opening For The Indian Markets

Posted by suhani varma on Wednesday, February 27, 2019 with No comments


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SGX Nifty is at 10,860, up 37 points. For today, expect higher volatility as we head into derivative contracts expiry on Thursday.

Nifty saw another volatile session as Indian Air force struck POK in a swift 30 minute sortie which destroyed the heart of terrorist activities. Nifty fell over 150 points in the afternoon session before seeing huge foreign buying, which saw Nifty recover all the losses, however last hour profit booking saw the index end lower by 40 points. Media, metals & select IT stocks led the pull back as the broader markets also saw contrarian buying. 

Global Markets: Asian indices opened in the green after yesterday's round of profit booking & may remain range bound as markets consolidate. Positive talks between US/China on trade & US/North Korea on disarmament could be the triggers for equity out performance going forward as globally equities are in the sweetest spot in last 2 years.

US Markets: US stocks close nearly unchanged as indices consolidate after 20% rally in last 3 months. Oil prices remain range bound as demand/supply situation improves with President Trump urging lower prices. President Trump to meet North Korean President today in Hanoi as peace talks gain momentum.

FII/DII Data: In yesterday’s trading session, FIIs bought 1674cr stock in the cash market, whereas DIIs sold 720cr worth of stock. In the derivative market, FIIs sold 698cr of Index futures and sold 571cr worth of Index options. In the Stock futures segment, FIIs bought 561cr worth of stock futures and sold 191cr stock options.

FII View: FIIs created bearish positions in the derivative segment which is deduced by the fact that they built 5634 short contracts in the Index Futures while simultaneously reducing 3,389 long contracts in Index Call Options. The long-short ratio in Index Futures currently stands at 1.3 x vs. 1.4x



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