On Wednesday, the Nifty saw a flat session with the index closing down 11 points even as the Sensex closed with marginal gains. The undertone remains extremely strong as midcaps continue to see huge flows from domestic mutual funds. Financial markets in Indian were shut on Thursday on account of Holi festival.
Global markets: Asian markets opened on a mixed note with the Japanese Nikkei trading flat to mildly negative as profit booking emerged in early trade. We expect more colors as other Asian indices trade positive with the most awaiting more news from the US and China trade talks to fructify. The fall in US bond yields bodes well for Asian markets as money chases high beta returns in emerging markets.
US Market: Federal Reserve turns 'dovish' for 2019 with no rate hike on the cards. US stocks witnessed superb rally with Dow Jones within striking distance of 26000. Bond yields fall further to hit 2.53% as risk-on trade drives equities higher.
FII/DII data: In yesterday’s trading session, FIIs bought 1772cr worth of stock in cash, whereas DIIs sold 1323cr worth of stock. In the derivative market, FIIs bought 51cr of Index futures and bought 2804cr worth of Index options. In the Stock futures segment, FIIs sold 1148cr worth of stock futures and bought 22cr stock options.
FII View: In Index future segment, FIIs index future long/short ratio continued to trend higher, the ratio currently stands at 1.8x vs 1.7x on account of marginal unwinding of long and short positions to the tune 5450/6942 contracts of index futures. However for a change, they reduced their short positions to the tune of 21370 contracts in speculative index put options. Overall with they have marginally started to book profit in their speculative bullish derivative positions.
|FII||OI(000's)||% Chg||% Chg Since Expiry||Long/Short Ratio||Long/Short Since Expiry|
|Future Index Long||215||(2)||128||1.8||1.5|
|Future Index Short||121||(5)||48|
|Option Index Call Long||294||(2)||(79)||2.9||2.9|
|Option Index Call Short||103||(8)||(93)|
|Option Index Put Long||341||3||(81)||1.3||1.3|
|Option Index Put Short||262||(8)||(85)|