SGX Nifty indicates a positive opening for markets

For today, we expect some pullback in the second half as bears book profit before the weekend as the last phase of elections end this Sunday.

May 16, 2019 02:05 IST India Infoline News Service

SGX Nifty is at 11187 levels, 25 points up. For today, expect some pullback in the second half as bears book profit before the weekend as the last phase of elections end this Sunday.

Nifty saw a volatile day with all gains being given up in last hour & the index closing lower another day. Bears gained the upper hand as weak global cues saw short sellers enlarge commitments & Nifty closed below 11200 once again. Metals, media & auto bore the brunt of the sell-off as 'sell on the rise' become the adage playing out for now.

Global market: Asian markets opened weak with the Japanese Nikkei trading lower by over 150 points in early trade. This came in after President Trump banned Chinese firm Huawei from doing business in the US. Stock prices are falling prey to constant rhetoric & investors caught in the whipsaw with prices changing more on dialogue exchange rather than fundamentals. For today, expect another day of consolidation as oversold markets tread water.

US Market: US indices pull back from 200 points down to close up 110 as President Trump waives tariffs on autos for another 6 months. The constant rhetoric is taking a toll on investors even as volatility rises to 2-year highs. Bond yields hit 2.37%, lowest in the last 2 years as the flight to safety sees investors buy fixed income.
 
FII/DII Data:
 In yesterday’s trading session FIIs sold 1142cr worth of stock in cash, whereas DIIs bought 672cr worth of stock. In the derivative market, FIIs bought 276cr of Index futures and sold 1897cr worth of Index options. In the Stock futures segment, FIIs bought 312cr worth of stock futures and sold 348cr stock options.

FII View: In Index future segment, FIIs index future long/short ratio stands at 1.4x vs 1.3x on account of marginal unwinding of short positions to the tune of 6505 contracts. Moreover, on the Index option’s front, they created marginal short positions in call option strikes to the tune of 12776 contracts, indicating an expectation of limited upside for the index.

FII OI(000's) % Chg % Chg Since Expiry Long/Short Ratio Long/Short Since Expiry
Future Index Long 130 (1) (29) 1.4 0.4
Future Index Short 96 (6) 61
Option Index Call Long 214 (0) 43 1.3 0.5
Option Index Call Short 170 8 170
Option Index Put Long 316 0 36 2.0 0.9
Option Index Put Short 157 5 53

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