The week opened with a blunt thud that sent the Indian Benchmark Index into a tizzy. The Nifty opened 100 points gap down at 8800 early on Monday and continued to give away much of the gains it garnered the previous week.

The Index would later slip below the all important level of 8784 in the next couple of days. The news of possible Fed rate hike drove Nifty down even as it made a low of 8717 midway through the week.

Indices

In a surprising turn of events the Benchmark index recovered sharply from its low on Wednesday and displayed impeccable strength even as it registered a high of 8879 on Friday. During the last hour of trade on Friday the Index saw fast profit booking from 8879 levels before making a low of 8769.

FII Participation

In the week gone by, FII have been in a profit booking mode. Since the beginning of the September expiry they bought 6775725 shares and in this week they have reduced their net position in Index futures by 1639725 shares.

In the week gone by, FII have been in a profit booking mode. Since the beginning of the September expiry they bought 3925500 shares and in this week they have reduced their net position in Index options by 6077700 shares

In the week gone by, FII have been net sellers worth Rs 65 cr in the cash segment. For the September expiry, since 26 August, FII are net buyers worth Rs. 3826 Cr.

FII and DII combined have reduced their positions in the cash segment by Rs. 756 Cr in this week. Total positions for FII and DII combines stands at net buy worth Rs. 2709 Cr for the current Expiry.

International Market Update

Previous week rate hike expectation were raised high after FED chair Jennet Yellen showed optimism on US rate hike timing to be as close as September. However, this week the expectations around the near term rate hike were crushed with US Futures Index S&P rising handsomely and making a high of 2148 from lows of 2120.

The move was backed by weaker than expected retail sales data and factory data, which have reduced the probability of rate hike for the September policy meet of the Fed due next week.
European markets also traded in a narrow range with no clear direction, German Index DAX traded in a narrow range of 10547 to 10288 levels.

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