Global cues are positive. US jobs data at record high, asian markets are high but there is one fundamental that will bother NIFTY today. That is SEBI regulation on p-notes in derivatives market. According to a circular issued by SEBI on Friday, Foreign Portfolio Investors cannot take a naked position in derivatives market. That means no long or short position in either in futures or in options market. Every position they wish to take in derivative market should be a hedge position for the main position they have in the cash market. Needless to say that its applicable only to the stocks.
40,000 Crore is the value of FPIs in p-notes. All that is going to get affected now. The existing positions have to be wound up in the coming expiry months. That will put pressure on stocks where there are long positions in futures and options like banking, FMCG and Auto stocks. Those positions have to be closed so there will be lot of selling happening there for all the naked positions. And for sectors like Pharma, Telecom, IT sectors where there are more short positions, there will be short covering in closing those positions. That means today market will make unpredictable moves with stocks reacting. This move also will bring down the volumes in the derivatives market as naked positions are not allowed. Good or bad, only time will tell.
For today NIFTY will open flat to positive with opening around 9680. Are we going to see the all time high of 9709 broken today? Looks likely. Will it close at a new all time high? We will have to wait and see on a day where some confusing Indian fundamentals encounter a good global fundamentals.
Fuel prices today, 10th July in important cities
Petrol prices became costlier by 20 paise and diesel by upto 25 paise from yesterday to today owing to rise in fuel prices. Just last Monday petrol was 67.01 in Hyderabad and today it’s 67.81. That’s a growth of 80 paise in a week’s time!