Selling Pressure in NIFTY as US data confirms FED rate hike

Stock Market Today by Shailesh Saraf – 25th May 2019

Stock Market Today by Shailesh Saraf – 25th May 2016
Indian Market Outlook:

US New home sales data which was above its 8 year high displayed the strength in the US economy which increased the likeliness of FED interest rate hike from 25 bps to 50 bps in the scheduled June 15 FED meeting, further confirmation will come if 3 month US treasury yield trades above 36 bps. However, the short term trend would be sell only if Small Cap trades below 5055. Nifty is opening 60 points gap up at 7822 from yesterday's close of 7762 at 8:15 am IST.

 

International Market Outlook

Asian Markets along with European and American peers are trading in green Wednesday morning on the backdrop of an upbeat US home sales data yesterday which displayed inherent strength in the US economy coming back above the pre 2008 levels. The chances of June rate hike are increased further. Markets would eye Fed Chair Janet Yellen's speech, who is also due to speak on Friday, which is also the concluding day for the Ise-Shima G7 Summit being held in Japan. Once the G7 summit is out of the way, markets will be focusing whether Tokyo may look to postpone a sales tax hike and implement fiscal stimulus steps. Elsewhere, "Brexit" themes continued to sway the pound, which soared overnight when the latest poll showed strong support for Britain to remain in the European Union.

 

 
Open Interest-FII & Pro Combined Activity
 
Open Interest-FII & Pro Combined Activity

On 29th April FII & Pro combined had a total long position in Index Futures of 8582325 shares which is reduced to only 916575 shares as on 24 May, i.e. a total sell of 7984500 shares in current expiry.

Similarly, in Index options, FII and Pro combined have increased their short positions from 19668150 shares to 36369450 shares, i.e. a total sell of 20330550 shares in current expiry.

The data indicates a clear sell bias in the markets by FIIs and Proprietary.

 
Change in Options Open Interest Today
 
Change in Options Open Interest Today

Today, FII have increased 29250 shares long and increased 66000 shares short positions in Index Call option, net sell 36750 shares today. In puts, FII have reduced 655950 shares long and increased short positions by 314925 shares, net PUT sell 970875 shares today.

Pro, have decreased 407700 shares long and decreased short position by 1051275 shares, a net buy of 643575 shares in Index Call Option Today. In Puts, Pro has increased long position by 1095150 shares and increased short position by 1476450 shares, a net sell of 381300 shares in Put today.

 
FII Derivatives statistics - NSE

FII Derivatives statistics - NSE

 
FII Options Statistics - Dynamic Research

FII Options Statistics - Dynamic Research

 
FII Index Statistics - Dynamic Research

FII Index Statistics - Dynamic Research

 
Major Events of the Day
  1. Indian: Important Quarterly results today: BAJAJ-AUTO,  GODREJIND,  TVTODAY,  CUMMINSIND, APOLLOHOSP, BOSCHLTD, LT, KWALITY, TATASTEEL, GAIL, CONCOR,  ASHOKLEY,  GENUSPOWER, AIAENG

.

 
FII Index Future Buy /Sell activity
 
 FII & DII Cash Buy/Sell Activity

As on 24th May, for Current Expiry from 29th April FII have sold Rs. 2189 crores worth shares along with DII who have bought shares worth Rs.6228 crores in the cash segment.

Today, FII have sold equity worth 816 cr and DII sold worth 990 cr.

 

*Top Price Gainers:

FSL: Firstsource Group USA Inc., wholly owned subsidiary of Firstsource Solutions Limited, a RP-Sanjiv Goenka Group company and a global provider of customized Business Process Management (BPM) services said thatthey have completed the acquisition of the BPO division of ISGN Corporation ("ISGN"), a leading provider of end-to-end technology solutions to the US mortgage industry.  

Top Price Gainers
 

*Top Price Losers:

WELCORP: declared Q4 result, The company's Q4 consolidated NP declined 522 % at Rs 23.1 crore against Rs 143.8 crore, YoY. The total income of the company was down 26.6 % at Rs 1,841 crore versus Rs 2,331.4 crore. The company's EBITDA was down 59.6 % at Rs 157 crore versus Rs 388 crore and EBITDA margin slipped 810 bps at 8.5 % against 16.6 %. It fell for the second day after the result was declared yesterday.               

 

Top Price Losers
 

*Top Volume Buzzers:

ESSELPACK:Packaging major Essel Propack has posted 23.4 per cent rise in its consolidated net profit at Rs 48.9 crore for the quarter ended March 31, 2016 as against Rs 39.6 crore for the comparable quarter last year.Total income from operations, however, jumped by a marginal by 2.8 per cent to Rs 561.4 crore for January-March 2016 quarter compared to Rs 545.9 crore for the same quarter previous year. Post the numbers stcok made low of 172 and then continued its uptrend and made a new 53 week high of 198.

Top Volume Buzzers
 
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