Tuesday, 14 May 2019

SGX Nifty Indicates A Lower Opening For Indian Markets

Posted by suhani varma on Tuesday, May 14, 2019 with No comments


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SGX Nifty is at 11455 levels, down 45 points. Markets, though oversold, are now near capitulation as all negatives of select weak earnings, global volatility & elections uncertainty are getting priced in.


Nifty saw a volatile day with last hour selling by foreign institutional investors hurting sentiment as the index closed lower for the 9th consecutive day not seen ever in the last 8 years. Broad-based selling saw all sectors & stocks see fear dominate as weak auto numbers coupled with redemption pressure saw large & mid caps collapse with no place to hide.


Global Market: Asian markets opened gap down as US markets tumbled leaving no place to hide with the Japanese Nikkei trading down nearly 350 points in early trade."Sell in May" has proven correct as stocks fall like nine pins with negative rhetoric adding fuel to the fire. Chinese index falls over 12% from recent April highs with the ferocity of fall on May being the worst in over a decade.


US Market: Dow Jones sees the biggest fall of 2019 with over 600 point sell-off. Nasdaq loses almost 3.5% in worst sell-off since 2017 as China's retaliation of tariffs undermines confidence with Apple tumbling over 11% in 3 days. Bond yields close below 2.4% as the flight to safety sees US$ & fixed income buying.


FII/DII Data: In yesterday’s trading session, FIIs sold 1056cr worth of stock in cash, whereas DIIs bought 1058cr worth of stock. In the derivative market, FIIs sold 138cr of Index futures and sold 908 crores worth of Index options. In the Stock futures segment, FIIs bought 186cr worth of stock futures and sold 7cr stock options.


FII View: In Index future segment, FIIs index future long/short ratio stood at 1.4x on account of no major changes in the long and short positions. Moreover, on the Index option’s front, they created marginal short positions in both call and put options.
FIIOI(000's)% Chg% Chg Since ExpiryLong/Short RatioLong/Short Since Expiry
Future Index Long1432(22)1.40.5
Future Index Short103372
Option Index Call Long2127411.50.6
Option Index Call Short14114125
Option Index Put Long317(0)362.21.0
Option Index Put Short144141

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