Nifty Shows 1st Signs of Profit Booking. Weekly Support of 8525 Critical

Indian Market Outlook: Indian Market Index Nifty saw the first signs of profit booking yesterday as it corrected by 100 points. The sell-off was seen throughout the day. The selling was throughout all sectors along with Bank Nifty and CNX Small Cap. A majority of PSU banks are slated to declare their results today and tomorrow. State Bank of India will declare its results tomorrow in market hours which can lead to volatility in the markets. FII and Pro combined have become sellers in index options and above average selling was witnessed yesterday. The combine position of FII and DII have been sellers in cash markets for second consecutive day. This signifies correction is on the cards which can continue for some time.

Top 5 gainers were Adani Ports, Bank of Baroda, TCS, HCLTECH and Zee Entertainment.

Nifty Futures is expected to open at 8592 as per SGX Nifty at 8:10 am IST, which is 2 points below its previous close of 8594.

Open Interest Index Futures:

On 10th August of 2016, FII & have bought 305175 shares combined, below average of 705075.

The total for the August expiry from the 29th July was 2809050 shares which indicates that Buy positions are still created.

Open Interest Index Options:

On 10th August of 2016, FII & Pro have sold 10433925 shares combined, which is above the average of 2920650.

The total for the August expiry from the 29th was sell of 16050225 shares which indicates that Sell positions are created for the clearing.

FII & DII Cash Buy/Sell Activity:

Last trading day, FII's have bought shares worth Rs.413 Cr and DII too have sold shares worth Rs. 747 Cr. Combined, net selling worth Rs. 334 cr was seen. Since 29th July 2016, FII have bought Rs.4534 crore worth shares where as DII have sold shares worth Rs. 3594 crores in the cash segment.

FII and DII combined have a net buy worth Rs. 940 cr since 29th July 2016.

The combined FII and Pro have seen a continued increase in long position in Index future and a increase of short position in index options. In the cash segment FII and DII combined are net buyers of Rs. 940 Cr since 29th July 2016.

Disclaimer:

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.

Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022