SGX Nifty indicates a negative opening for Indian markets

For today, expect collateral selling from leveraged players to continue along with foreign selling nearing exhaustion levels as the broader market sees near capitulation.

Jul 22, 2019 02:07 IST India Infoline News Service

Stock Market Trader, Stock Trader, Trading
SGX Nifty is at 11,405, down 25 points. For today, expect collateral selling from leveraged players to continue along with foreign selling nearing exhaustion levels as the broader market sees near capitulation.

Nifty saw a bad day 3rd day running as the index closed at the lowest point since the budget. The foreign selling related to taxation implications has accentuated after the Finance Minister announced no change for trusts which saw blue-chip selling in the last 2 days. The undertone remains weak with earnings from select Companies getting lukewarm interest despite better than expected growth.

Global markets: Asian indices opened flat to mildly in the green as weakness in US$ saw some ETF flows gather momentum in select Asian markets. The trend has been listless with attractive valuations in most Asian markets yet no conviction buying till earnings calendar plays out. China could see select outperformance as Central bank to announce further stimulus to revive growth.

US markets close lower as global cues cause a pause in the rally with Iran tensions seeing profit booing on rallies. Oil prices remain elevated as geopolitics see UK/Iran rhetoric add to the uncertainty, while bond yields also remain at 2.06%. Federal Reserve to cut rates with street divided on 25 or 50 basis point cut.

FII/DII Data:  In yesterday’s trading session FIIs sold 950 crores worth of stock in cash whereas DIIs bought 734 crores worth of stock. In the derivative market, FIIs sold 1059 crores of Index futures and sold 1030 crores worth of Index options. In the Stock futures segment, FIIs sold 75 crores worth of stock futures and sold 150 crores stock options.

FII View: In Index future segment, FIIs index future long/short ratio stood at 1x vs 1.1x with the marginal unwinding of long positions to the tune of 6628 contracts. However, on the Index option’s front, across the board call writing and put option buying positions were adding, indicating a negative bias.  

FII OI(000's) % Chg % Chg Since Expiry Long/Short Ratio Long/Short Since Expiry
Future Index Long 129 (5) 13 1.0 0.6
Future Index Short 127 2 83
Option Index Call Long 160 (2) 26 2.2 0.5
Option Index Call Short 71 44 139
Option Index Put Long 269 9 74 3.3 1.1
Option Index Put Short 83 13 53

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