Tuesday, 26 March 2019

SGX Nifty Indicates Flat Opening For Indian Markets

Posted by suhani varma on Tuesday, March 26, 2019 with No comments


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SGX Nifty is at 11354, down 1 point. For today, we expect some pull back with foreign investors buying stocks aggressively, while local funds continue to sell.

Derivative contracts expiry for the month of March will see higher volatility, which will see both sided movements in stocks and the index. On Monday, Nifty saw a sharp correction in-line with most Asian indices to close lower by 100 points. This came in after seeing a nearly non-stop 1000 points rally in the last month.

Global Market: Asian markets opened with gains as the Japanese Nikkei rose over 350 points in early trade. Most Asian indices should see a mild recovery today after the severe sell-off on Monday both on account of value buying and short covering. Market participants will now await more data from the US as yields price in chances of a rate cut by the Federal Reserve in the next policy meet.

US Market: US stocks consolidate after Friday's big fall as value buying emerges with yields also seeing an uptick. Oil prices rally as demand rises with the extended cold wave in most parts of Europe and the US. The dollar falls as trade deficit hits record after China trade embargo.

FII/DII Data: In yesterday’s trading session, FIIs bought 150cr worth of stock in cash, whereas DIIs sold 13cr worth of stock. In the derivative market, FIIs sold 153cr of Index futures and bought 3617cr worth of Index options. In the Stock futures segment, FIIs sold 785cr worth of stock futures and sold 80cr stock options.

FII View: In Index future segment, FIIs index future long/short ratio continued to trend higher, the ratio currently stands at 2x vs 1.9x on account of marginal unwinding of both long and short positions to the tune of 2284/2907 contracts of index futures. However, they have continued to post heavy buying figures to the tune of 27288/33863 contracts in speculative index call and put options, indicating covering of option writing positions.
FIIOI(000's)% Chg% Chg Since ExpiryLong/Short RatioLong/Short Since Expiry
Future Index Long214(1)1272.01.7
Future Index Short109(3)34
Option Index Call Long3159(77)2.93.0
Option Index Call Short107(1)(92)
Option Index Put Long4059(78)1.41.4
Option Index Put Short2845(84)

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