Thursday 4 April 2019

SGX Nifty Indicates A Positive Opening For Indian Markets

Posted by suhani varma on Thursday, April 04, 2019 with No comments


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SGX Nifty is at 11738, up 26 points. The Central bank's policy will be key as 25 basis point rate cut is already priced in with future guidance being keenly watched.

On Wednesday, Nifty saw a new high get hit in the morning with profit booking dragging the index to close near the lows of the day. A weak rainfall warning by the weather department also made caution prevail over greed as midcaps & small-caps saw heavy profit booking. Also, Rupee hit fresh 9 month highs, while yield hit 6-month lows.

Global Market: Asian markets opened flat after seeing a strong day yesterday, in which most Asian indices hit 6-month highs. A weak dollar against the yen saw profit booking in Japanese exporters, while energy stocks also consolidated as oil remained steady. For today, expect profit booking/consolidation in most Asian indices as markets await the outcome of trade talks. 

US Market: US stocks closed at 6-month highs as technology stocks boost indices. Bond yields spurt to 2.51%, while the dollar sees weakness. S&P 500 outperforms all large global indices in the last 6 months as strength returns in developed markets. All eyes on the US-China deal this week, which could be a game changer in the near term.

FII/DII Data: In yesterday’s trading session, FIIs sold 1041cr worth of stock in cash, whereas DIIs sold 81cr worth of stock. In the derivative market, FIIs bought 92cr of Index futures and bought 877cr worth of Index options. In the Stock futures segment, FIIs bought 1356cr worth of stock futures and bought 31cr stock options.

FII View: In Index future segment, FIIs index future long/short ratio stands at 2.2x without any major activity seen in the future contract. However, in index put options they created a meaningful 14875 contracts of buying positions, indicating a formation of a hedging position to cover the downside risk of their bullish positions.

FIIOI(000's)% Chg% Chg Since ExpiryLong/Short RatioLong/Short Since Expiry
Future Index Long152(2)(1)2.21.0
Future Index Short68(9)(2)
Option Index Call Long221(4)92.51.0
Option Index Call Short90(7)11
Option Index Put Long2935191.51.1
Option Index Put Short201112

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