Wednesday 6 March 2019

SGX Nifty Indicating A Positive Opening For Indian Markets

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


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SGX Nifty is at 11061, up 28 points. For today, we expect midcaps to continue to outperform as the Nifty sees consolidation.

On Tuesday, Nifty saw a very strong session after a flat start with the midcap stocks and indices jumping to near 6-month highs. The breadth was extremely positive with participation across the broader markets as mid and small caps led the rally. The Nifty closed just shy of 11000 with auto, metals, and banks leading the gainers, while IT was the only losing sector.

Global Market: Asian markets opened in the red led by the Japanese Nikkei as profit booking emerged after overnight the US markets closed unchanged. After a stellar 3 month rally, markets are awaiting further catalyst to move up as most of the good news is priced in. Expect more news on trade resolution to be the next big mover, which gets priced in the Chinese markets outperformance over the last 3 months.

US Market: US stocks end flat as markets consolidate after a huge rally in the last 3 months. Strength in the US$ saw profit booking re-emerge as markets lacked any immediate catalyst in the short term. Bond yields saw a further decline while oil also fell prey to profit booking, losing 0.5%. 

FII/DII Data: In yesterday’s trading session, FIIs bought 752cr worth of stock in cash, whereas DIIs bought 581cr worth of stock. In the derivative market, FIIs bought 144cr of Index futures and bought 482cr worth of Index options. In the Stock futures segment, FIIs bought 559cr worth of stock futures and bought 5cr stock options.

FII View: In the Index future segment, FIIs created almost identical bullish and bearish positions, keeping the long-short ratio around 1.1x. However, they created 18886 contracts of speculative long positions in index call options, hinting a continuation of current up move in the benchmark index to the immediate resistance level of 11200.
FIIOI(000's)% Chg% Chg Since ExpiryLong/Short RatioLong/Short Since Expiry
Future Index Long1054111.10.9
Future Index Short99422
Option Index Call Long17112(88)3.23.2
Option Index Call Short547(96)
Option Index Put Long2921(84)1.91.9
Option Index Put Short1527(91)

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