On Wednesday, Nifty saw a very strong opening get sold into, as mid caps carnage keeps markets under pressure. The process of over-leverage promoters’ collateral selling rumors caused huge volatility in well-managed companies with stocks falling 20-30%. The rupee has strengthened and a huge global rally is being witnessed starkly showed the Nifty underperformance.
Global market: Asian indices opened flat after seeing a superb week until now lead by the US markets and positive momentum on the US-China trade talks. The Japanese Nikkei has seen gains of nearly 4% this week as oversold equities see a strong rebound. Expect consolidation as markets await further news on trade talk progress and also see profit booking.
US Market: US stocks rally another day as Nasdaq enters bull market up 20% from recent December lows. Oil prices rose as trade talks get off to positive start and growth in demand leads to speculative build up. The dollar also sees a strong comeback as it hits 97 against the Euro.
FII/DII Data: In yesterday’s trading session, FIIs sold 676cr stock in the cash market, whereas DIIs bought 713cr worth of stock. In the derivative market, FIIs bought 397cr of Index futures and sold 415cr worth of Index options. In the Stock futures segment, FIIs sold 301cr worth of stock futures and sold 189cr stock options.
FII View: FIIs created bullish positions in Index Futures, which is deduced by the fact that they created 6249 net long contracts in the segment, while simultaneously creating 4534 short contracts in Index Put Options. The long-short ratio in Index Futures currently stands at 1.8x vs 1.7x.
|Index Call Long||233||(1)||29||3.2||1.0|
|Index Call Short||73||5||26|
|Index Put Long||363||1||28||2.0||1.0|
|Index Put Short||180||3||25|