Cash Market Is Trading Weak From Last 10 Days. Small Cap Index Has Fallen 4%
Small Cap Index has fallen 4% in the last 10 days from its high of 6687 to 6340. The issue of increasing NPA in Banks and Financial Services, payment defaults of companies, lower credit ratings has provided negative sentiment in the market. We suggest our readers to stay cautious with respect to fresh buying position in the market.
Yes bank is down by 3.75% as Yes Bank’s founder Rana Kapoor has demanded for a seat on the board and compensation for lost payment has thrown the private sector lender’s board into a tizzy, forcing the resignation of a second independent director. In two days Central government on Monday took a decision to ban auditors Deloitte Haskins & Sells and BSR & Co for their alleged role in helping hide bad loans at the bankrupt IL&FS Financial Services.
On international front, market may remain volatile ahead of the Group-of-20 summit, which some say could provide a breakthrough in stalled trade talks between the world’s two-largest economies. U.S. President Donald Trump said he is personally holding up a trade deal with China and that he won’t complete the agreement unless Beijing returns to terms negotiated earlier in the year.
US Federal Reserve will announce its monetary policy on 19th June. Our study says that the Federal Reserve may lower down its interest rate by 25 basis points as 3 month Treasury yield is trading at 2.28. The current interest rate is 2.5%.
Yesterday market was up from its previous day closing by few points, the sectors which managed to stay in green in major sector were Energy-Oil & Gas, Banks-Private and PSU, Power and Metals and Mining while Gold & Jewellery, Telecom, Films, Services and Media-TV and Newspaper were top 5 sectors which were up in minor sectors.
The following companies has outperformed yesterday: Jain Irrigation Systems (Industrial Manufacturing) by 9.38%, Reliance Home Finance (Financial Services) by 8.87%, 3I Infotech (IT) by 9.09%, Welspun Enterprises (Infrastructure Construction and Engineering) by 5.08% and Navkar Corp (Transportation Logistics) by 7.43%.
The US 10 Year T-Note is trading at 126.84. The Bond has crucial support at 117.42 made on 5th Nov 2018. The US Dollar Index is trading at 96.653.
Open Interest Analysis:
FII & PRO are the major players in the Derivatives segment and have an upper hand in the market and their position provides direction to the market. In the June month expiry, they have started with the position of (-30212) contracts in Index option (both FII & PRO combined) when Nifty spot was trading at 11946.Till yesterday they had Net Open Interest position of (-31936) contracts for the June expiry. In the last trading session FII and PRO in combined have sold 85573 contracts.
FII+PRO in combined have bought 85573 contracts in Index options in the last trading session.
Cash Market Data
In last 10 days, FII and DII in combined have bought stocks in cash segment worth Rs.654.05 Crores.
Sector Performance as on 11th June, 2019
Sector wise Small Cap gainers as on 11th June
Mid cap Gainers & Losers as on 11th June 2019
Large cap Gainers & Losers as on 11th June, 2019
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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.