SGX Nifty indicates subdued start; Glenmark Pharma sees significant build in open interest

The bulls seemed to be blessed by the Almighty and believe that nothing can go wrong with them. The Indian markets were staring at a murky opening on Monday as the cues from the global markets were shabby and fragile. However, backed by the blessings of Goddess Lakshmi i.e. liquidity, FIIs continued their buying spree and helped the markets to record yet another record high as Sensex and Nifty closed above the 45,400 and 13,350 mark.

However, on Tuesday morning, the bulls look tired as SGX Nifty is indicating a subdued opening after trading down by 9 points at 13,412 as cues from the global peers are uncertain.

In the last trading session, the broader markets were also seen participating with full enthusiasm as they outperformed the frontline indices. On the sectoral front, Nifty Media, Nifty PSU Bank, Nifty Pharma, and Nifty FMCG were the top gainers. In Nifty Media, Sun TV, and ZEEL witnessed long build-up as both the stocks gained more than 4 per cent along with open interest surge of 3.1 per cent and 2.27 per cent, respectively.

In the pharma sector, many stocks witnessed a long build-up; Glenmark Pharma saw a huge addition of open interest (OI) as it added nearly 26 per cent in OI, followed by Torrent Pharma, Biocon, and Cipla. Nifty Pharma is well-placed on the charts and it might continue its momentum, which was seen in the last trading session.

Most of the equity indices in Asia were trading lower on Tuesday on the back of lackluster cues overnight from Wall Street. Hong Kong’s Hang Seng and Japan’s Nikkei 225 were down by 0.43 per cent and 0.28 per cent, respectively. Meanwhile, China’s Shanghai Composite was up by 0.24 per cent.  

The stocks on Wall Street witnessed a choppy trading session on Monday as the market participants preferred to take the profit off the tables after the recent rally with Dow and S&P 500, recording modest losses, while the tech-heavy Nasdaq Composite gained 0.5 per cent to close at a record high. During the session, Dow member-Intel tumbled on the back of the news that Apple is planning a series of new Mac processors.

Meanwhile, on the economic front, consumer borrowing slowed in October. European indices too ended on a mixed note as the ambiguity over a Brexit deal shattered the market participants’ appetite for risk.