Tuesday 21 May 2019

SGX Nifty Indicates A Higher Opening For Indian Markets

Posted by suhani varma on Tuesday, May 21, 2019 with No comments


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SGX Nifty is at 11880 levels, up 15 points. For today, we expect the Nifty to scale new highs as pessimism turns to extreme optimism with stable Government triggering a mini bull run.

Nifty saw the best rally in over 10 years with the index seeing heavy short covering & value buying to close up over 420 points or 3.7%. The Sensex rose 1400 points as foreign investors bought stocks across the board. Midcaps also outperformed with gains in Midcap 50 & Midcap 100 of over 4.5 and 4%, respectively.

Global Market: Asian markets opened in the red led by the Japanese Nikkei which saw profit booking in early trade. The Chinese indices have also seen foreign flows exit as uncertainty on trade wars has hurt sentiment. For today, expect more consolidation as Chinese data due this week could decide the trend going forward.

US Markets: US indices close lower as technology stocks see a downgrade as China tariffs to hurt earnings. Financials see strong sector rotation buying with smart money buying banks & selling IT. Oil remains range bound with supply concerns keeping prices on the boil. Further, 10-year yields rise marginally over 2.42% as markets price in a rate cut by Federal Reserve in the next policy.

FII/DII Data: In yesterday’s trading session, FIIs bought 1734cr worth of stock in cash, whereas DIIs sold 543cr worth of stock. In the derivative market, FIIs bought 1071cr of Index futures and bought 1536cr worth of Index options. In the Stock futures segment, FIIs bought 793cr worth of stock futures and bought 26cr stock options.

FII View: In Index future segment, FIIs index future long/short ratio stands at 1.3x vs 1.2x with marginal addition of long positions. However, on the Index option’s front, marginal addition of buying positions to the tune of 12600 contracts was added input options, mainly to hedge their existing long positions in futures.

FIIOI(000's)% Chg% Chg Since ExpiryLong/Short RatioLong/Short Since Expiry
Future Index Long14211(23)1.30.4
Future Index Short110885
Option Index Call Long2021351.20.5
Option Index Call Short163(1)159
Option Index Put Long2885241.70.7
Option Index Put Short174(2)70

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