Trade setup for Aug 12, 2022: Things to know before the stock market’s Opening Bell

Here we list out key things that one should know before the stock market’s opening bell today:

Global markets cues

On Wall Street, Dow Jones ended 0.08 per cent higher, Nasdaq shed 0.58 per cent, S&P 500 went off 0.07 per cent whereas Small Cap 2000 added 0.38 per cent on Thursday trade session. European shares however gave up early gains as investors digested comments from Federal Reserve officials who remained resolute on the need for further interest-rate hikes. Most Asian indices closed at 3 month highs.

Asian markets early morning trends

In early morning deals on Friday, Japan’s Nikkei is up 2.13 per cent, South Korean Kospi is off 0.02 per cent, Hong Kong’s hang Seng shot up 2.40 per cent whereas Chinese Shanghai went off 0.01 per cent.

SGX Nifty technical outlook

In early morning session on Friday dealings, SGX Nifty is off 30 points and quoting at 17,658 levels.

“Overall trend for SGX Nifty today is up and traders are advised to maintain buy on dips strategy after every 4-5 per cent dip from their positions,” said Anuj Gupta, Vice President — Research at IIFL Securities.

Nifty technical outlook

“On the higher side, the trendline resistance will be the immediate zone to watch out on the higher side which is around 17,700 to 17,750 while the support base has now shifted higher to 17,350 to 17,300 range. So traders with long positions can now trail their stop loss higher to 17,300 while profit booking is advisable at higher levels,” Ruchit Jain, Lead Research at 5paisa.com,

Nifty Bank technical outlook

“Immediate support for Nifty Bank index is placed at 38,100 to 38,000 zone whereas it is facing strong resistance at 39,300 to 39,400 levels, which means broader range for Bank Nifty today lies in between 38,000 to 39,400 levels,” said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Nifty Call Put Option data

“NIFTY FUT’s trend of making higher highs and higher lows, is definitely a big boost to the BULLs rally likely to continue for days to come now. Option chain for the weekly expiry suggests 17700CE/19000CE having highest fresh additions of over 59 thousand contracts each , with PE writers active at 17500PE – over 60 thousand contracts,” said Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher.

Nifty Call Put ratio

“PCR OI at 17600 strike is nearly 1.7, which is also favoring the BULLs now,” Shilpa Rout said.

Bank Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 11 August, Major total Call open interest was seen at 39000, 39200 and 39500 strikes with total open interest of 55508, 11214 and 54536 contracts respectively. Major Call open interest addition was seen at 39000 and 39500 strikes which added 41190 and 42493 contracts respectively. Call unwinding was seen at 38300, 38400 and 38500 strikes which shed 6826, 4611 and 6152 contracts respectively.

Bank Nifty Put Option data

As per data shown by nseindia.com at 3.30 pm on 11 August, Major total Put open interest was seen at 38800, 38700 and 38500 strikes with total open interest of 32546, 15908 and 30431 contracts respectively. Major Put open interest addition was seen at 38800, 38700 and 38500 strikes which added 32276, 15462 and 25178 contracts respectively. No major Put unwinding was seen at strikes ranging from 38500 to 39500.

FII DII data

Foreign institutional investors (FIIs) have not bought 2,298.08 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 729.56 crore worth of shares on August 11, as per provisional data available on the NSE.

NSE F&O ban on 12th August 2022

The National Stock Exchange (NSE) has added Balrampur Chini and Delta Corp stock under its F&O ban list for trade date 12th August 2022. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market -wide position limit.

US bond yield

US 10 year bond yield is down by 0.01 per cent to 2.888 whereas US 30 year bond yield is down by 0.45 per cent to 3.160.

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