SGX Nifty indicates a flat opening for Indian markets

For today, expect some more short covering as with exit polls on Sunday most traders would want to square off positions before the much-awaited election results on next Thursday.

May 17, 2019 02:05 IST India Infoline News Service

SGX Nifty is currently trading at 11299 levels, 7 points down. For today, expect some more short covering as with exit polls on Sunday most traders would want to square off positions before the much-awaited election results on next Thursday.

Nifty saw a sharp rebound in the last hour as short covering & value buying saw the index climb over 140 points from the lows to the highs of the day. Even more pronounced was the rally in the Bank Nifty which jumped over 400 points to close near the highs for the day. Media, metals & OMC (oil marketing companies) led the pullback as oversold conditions saw value buying.

Global Market: Asian markets opened in the green led by the Japanese Nikkei which traded well over 200 points in early trade. US indices clocked gains for the 3rd day running with President Trump's extension of status quo on auto tariffs having a positive effect on sentiment. Chinese data due next week will see the trend being set on what the impact of the tariff is having on Chinese exporters.

US Markets: US indices trade higher 3rd day running as earnings optimism sees technology stocks lead the pullback. Bond yields remain below 2.4% as uncertainty on trade front sees money chase fixed income. Oil prices rally as US supplies fall more than estimated.

FII/DII Data:  In yesterday’s trading session, FIIs sold 953cr worth of stock in cash, whereas DIIs bought 948cr worth of stock. In the derivative market, FIIs sold 820cr of Index futures and sold 2012cr worth of Index options. In the Stock futures segment, FIIs bought 421cr worth of stock futures and bought 168cr stock options.

FII View: In Index future segment, FIIs index future long/short ratio stands at 1.2x vs 1.4x on account of a marginal unwinding of long positions to the tune of 8791 contracts. Moreover, on the Index option’s front, the large amount of unwinding was seen in long positions of both call and put options strike, indicating an expectation of a reduction in the volatility going forward.
 
FII OI(000's) % Chg % Chg Since Expiry Long/Short Ratio Long/Short Since Expiry
Future Index Long 121 (7) (34) 1.2 0.4
Future Index Short 98 2 64
Option Index Call Long 187 (13) 25 1.2 0.5
Option Index Call Short 153 (10) 143
Option Index Put Long 269 (15) 15 1.7 0.7
Option Index Put Short 161 3 58

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