Wednesday 6 February 2019

SGX Nifty Indicating A Gap Up Opening For The Indian Markets

Posted by suhani varma on Wednesday, February 06, 2019 with No comments


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SGX Nifty is at 10934.35, up 22.10 points. Nifty saw a good session for large cap heavyweights while the broader breadth remained under pressure as mid caps continued to see selling. Foreign flows are supporting the index with buying in Reliance, HUL,TCS & other large caps, however the ADAG stocks are seeing selling as sentiment has turned negative. For today, expect test of 11000 as global cues see equity outperform, while mid caps could see lukewarm trade.

Global Markets: Asian indices opened with marginal gains as the Japanese Nikkei traded up 100 points.The Chinese New year holidays this week will see low volumes with most markets shut. For today, the undertone remains firm as oil prices correction should see Asian importers benefit.

US Markets: US stocks extend rally for 5th straight session as earnings support prices with Dow Jones up 17% from December lows. US$ sees comeback as yields rise with rebound in stocks. Oil sees sharp correction as US inventories act as overhang against Venezuela imbroglio.

FII/DII Data: In yesterday’s trading session FIIs bought 420 crores stock in the cash market whereas DIIs bought 194 crores worth of stock. In the derivative market, FIIs bought 794 crores of Index futures and bought 173 crores worth of Index options. In the Stock futures segment, FIIs sold 320 crores worth of stock futures and bought 40 crores stock options.

FII View: FIIs created bullish positions in the derivative segment which is deduced by the fact that they created 8,337 net long contracts in Index Futures while simultaneously creating 5,358 net long contracts in Index Call options. The long-short ratio in Index Futures currently stands at 1.3x which is a bullish sign.

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