SGX Nifty indicates a higher opening for Indian markets

For today, we expect some initial consolidation, however, with oil hitting 2-month lows, it bodes good news for Indian equities with banks, OMC & financial services leading the pullback.

May 24, 2019 02:05 IST India Infoline News Service

IT Stocks Up
SGX Nifty is 11736 levels, up 57 points. For today, we expect some initial consolidation, however, with oil hitting 2-month lows, it bodes good news for Indian equities with banks, OMC & financial services leading the pullback.

Nifty saw a historic event with the ruling BJP Government recording its biggest win. The Nifty skyrocketed to above 12000 before a huge bout of profit taking saw the index ended lower by 80 points. The intraday swings on the Nifty were over 430 points, while on the Bank Nifty it was 1400 points. Local mutual funds played spoilsport & booked profits with weak global cues prompting profit booking.

Global market: Asian markets opened weak following the US cues as the Japanese Nikkei traded down 150 points in early trade. Sharp fall in energy stocks & subsequent US$ weakness saw the Japanese Yen get stronger, which hurt the exporter stocks. With Hang Seng also recording its largest fall of the week, expect a cautious opening with weekend blues seeing range bound trade. 

US Market: US indices closed with losses as nervousness over China tariffs see energy stocks get pounced with crude heading for worst week of the year. Dow Jones recovers from losses of 450 points to close down 285 points as Nasdaq & technology stocks see selling accentuate. Oil falls nearly 5% as growth fears see the extension of losses as Iran tension sees cooling off.

FII/DII Data: In yesterday’s trading session, FIIs bought 1352cr worth of stock in cash, whereas DIIs sold 594cr worth of stock. In the derivative market, FIIs sold 1414cr of Index futures and bought 6422cr worth of Index options. In the Stock futures segment, FIIs sold 372cr worth of stock futures and bought 134cr stock options.

FII View: In Index future segment, FIIs index future long/short ratio stands at 1.1x vs 1.3x with an unwinding of the long position to the tune of 10059 contracts and addition of short positions to the tune of 8296 contracts. However, on the Index option’s front, they squared off the call and put option writing positions to the tune of 41214/18324 contracts. Overall, their positioning is indicating a bearish outlook.

FII OI(000's) % Chg % Chg Since Expiry Long/Short Ratio Long/Short Since Expiry
Future Index Long 148 (6) (20) 1.1 0.4
Future Index Short 134 7 125
Option Index Call Long 200 (3) 34 1.2 0.5
Option Index Call Short 168 (20) 168
Option Index Put Long 339 1 46 1.9 0.8
Option Index Put Short 177 (9) 73
 

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