On Thursday, Nifty saw a very high volume day as the Reserve Bank's Governor surprised the street with a 25 points rate cut. This saw stocks initially take off with the Nifty scaling 11100 before profit booking set in the last hour to see the index closed flat. Pharma and media stocks led the gainers, while PSU banks & financial services stocks led the decliners.
Global Markets: Asian indices opened weak with the Japanese Nikkei trading down over 1% as correction in US stocks saw global weakness in stocks. With most Asian indices closed this week for the Chinese New Year, we expect more color on markets going forward from next week. Oil price fall should bode well for the importers as currencies & bonds fare well.
US Markets: US stocks fall over delay of trade talks between US-China and signs of slow down. Dow Jones fell nearly 400 points intraday before recovering to close down 220 points. Oil prices slide as global slow down sees pressure on demand assumptions.
FII/DII Data: In yesterday’s trading session, FIIs bought 418cr stock in the cash market, whereas DIIs bought 294cr worth of stock. In the derivative market, FIIs bought 999cr of Index futures and bought 1173cr worth of Index options. In the Stock futures segment, FIIs bought 473cr worth of stock futures and bought 85cr stock options.
FII View: FIIs created bullish positions in the derivative segment which is deduced by the fact that they created 7499 long contracts in Index Futures, while simultaneously reducing 17979 short contracts in Index Call options. The long-short ratio in Index Futures currently stands at 1.7x vs 1.5x which is a bullish sign.
|Index Call Long||208||(3)||15||3.6||1.2|
|Index Call Short||57||(24)||(1)|
|Index Put Long||318||(4)||12||1.8||0.9|
|Index Put Short||179||(1)||24|