Tuesday 12 February 2019

SGX Nifty Indicating A Flat Opening With A Negative Bias For The Indian Markets

Posted by suhani varma on Tuesday, February 12, 2019 with No comments



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SGX Nifty is at 10,901, down 30 points. Nifty saw a very weak session as the breadth remained a cause of concern with midcaps seeing no respite from selling. IT & media stocks were the only gainers, while PSU banks & financials were the worst hit as lack of news prompted bears to hammer the stocks.

Global Markets: Asian indices opened in the green led by the Japanese Nikkei, which traded higher after a holiday on Monday & gained 300 points in early trade. Most Asian indices have seen positive momentum since the start of the New Year & equities have seen a good run. Development on US/China resolution will see further gains, as China holiday sales indicated lowest volumes in last 5 years.

US Markets: US stocks drift lower owing to focus on resolution of US/China trade talks as meetings begin in Beijing. Slowdown in US sees oil prices fall further as supply pressure eases. Bond yields hit 2.63% on the 10 year US treasury as fixed income emerges the best hedge against any slowdown.

FII/DII Data: In yesterday’s trading session FIIs sold 125 crores stock in the cash market whereas DIIs sold 232 crores worth of stock. In the derivative market, FIIs bought 274 crores of Index futures and bought 1344 crores worth of Index options. In the Stock futures segment, FII’s sold 551 crores worth of stock futures and bought 50 crores stock options.

FII View: FIIs created bullish positions in the Index Futures segment which is deduced by the fact that they created 4056 net long contracts. However, considering the volatility in the market they also created 15103 long contracts in Index Put Options. The long-short ratio in Index Futures currently stands at 1.7x vs 1.6x which is a bullish sign.

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