SGX Nifty indicates a positive opening for Indian markets

For today, expect some stock-specific action in banks & pharma where buying has been evident in the last 2 days, while select NBFCs could see selling pressure remain as collateral selling by foreign investors continues.

Jul 11, 2019 02:07 IST India Infoline News Service

Stock Market Trader, Stock Trader, Trading
SGX Nifty is at 11,542.50, up by 48 points.

For today, expect some stock-specific action in banks & pharma where buying has been evident in the last 2 days, while select NBFCs could see selling pressure remain as collateral selling by foreign investors continues.

Nifty struggled another day with uncertainty over foreign investors' taxation & underlying weakness creeping into consumer durables, hurting sentiment. With the short- term weakness more a synonym of this tax anomaly, it should be used as an opportunity to accumulate good stocks as the underlying theme of the budget was positive. 

Global Markets: Asian indices opened mildly in the green as positive action in the bond markets indicated yields to remain low for the rest of the year. Most Asian indices also fell proxy to weaker US$ & hence will stand to gain from the risk on trade of foreign ETF flows. For today, expect some upside form Chinese markets as they see better-than-expected earnings from select corporates.

US Markets: US markets closed with gains as the Federal Reserve Chairman indicated that a rate cut was on the cards. US$ saw weakness as yields fell to 2%, while oil prices hit fresh 2-month highs owing to Iran tensions. The S&P 500 index crossed 3,000 in a historic event even as Nasdaq & Dow Jones hit fresh lifetime highs.

FII/DII Data:  In yesterday’s trading session FIIs sold 605 crores worth of stock in cash whereas DIIs bought 667 crores worth of stock. In the derivative market, FIIs sold 141 crores of Index futures and bought 398 crores worth of Index options. In the Stock futures segment, FIIs sold 210 crores worth of stock futures and sold 75 crores stock options.

FII View: In Index future segment, FIIs index future long/short ratio stood at 0.9x with no major changes in long and short positions. Moreover, on the Index option’s front, the trend of put option buying and call option writing continued in yesterdays trade, indicating an expectation of a negative bias in the index.

FII OI(000's) % Chg % Chg Since Expiry Long/Short Ratio Long/Short Since Expiry
Future Index Long 119 0.9 0.6
Future Index Short 132 (0) 90 
Option Index Call Long 168 33  2.2 0.5
Option Index Call Short 77 16  157 
Option Index Put Long 241 56  3.0 1.0
Option Index Put Short 81 (4) 50 

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