Indian Market Outlook:
The benchmark Index Nifty continued to trade in a narrow range following a hurdle of 8750. Yesterday Nifty made a high of 8713 and closed at 8685. Unless market gives a breakout of 8750, it should trade in a range of 200 points between 8750 to 8550. The level of 8750 would be a profit booking area for cash stocks. One should build fresh long position only above 8750 levels. On the other side Small Cap Index is trading above its 3 day high of 6015. Yesterday’s close was at 6066, immediate target for Small Cap Index is at 6116. We expect a quiet session in the absence of any major events and data.
State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and Bhartiya Mahila Bank will be in focus as SBI has approved its merger with these banks.
Top 5 gainers for yesterday were ULTRACEMCO, POWERGRID, NTPC, INDUSINDBK, GRASIM.
Nifty Futures is expected to open at 8670 as per SGX Nifty at 8:35 am IST, which is 15 points below its previous close of 8685.
Open Interest Index Futures
On 18th August of 2016, FII & Pro have bought 182700 shares combined, below average of 705075.
The total for the August expiry from the 29th July was 2566425 shares which indicates that Buy positions are still created in Index Futures.
Open Interest Index Options
On 17th August of 2016, FII & Pro have bought 2994750 shares combined, which is above the average of 2920650.
The total for the August expiry from the 29th was sell of 7812900 shares which indicates that Sell positions are created for the clearing in Index Options.
FII & DII Cash Buy/Sell Activity
Last trading day, FII’s have bought shares worth Rs. 162 Cr and DII have sold shares worth Rs. 14 Cr. Combined, net buying worth Rs. 148 cr was seen. Since 29th July 2016, FII have bought Rs.7193 crore worth shares where as DII have sold shares worth Rs. 4820 crores in the cash segment. FII and DII combined have a net buy worth Rs. 2373 cr since 29th July 2016.
The combined FII and Pro have seen a marginal increase in long position in Index future and a increase of long position in index options. In the cash segment FII and DII combined are net buyers of Rs. 2373 Cr since 29th July 2016.
International Market Outlook: There was a consolidation seen in the US and European markets with US Index S&P futures trading in the range of 2175 – 2183 and European markets were trading flat after a gap up opening. There is anticipation of FED increasing interest rate either in the September or December policy meet. Today morning Nikkei is trading flat.
1. The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised
to use the data for the purpose of information and rely on their own judgment while making investment decision
2. Past performance is not an indicator of future returns.