Trade setup for Aug 29, 2022: Things to know before stock market’s Opening Bell | Mint – Mint

Trade setup for Monday: After showing weakness on F&O expiry of August series on Thursday, Indian stock market shifted into base building mode on Friday and closed in green territory. NSE Nifty ended 36 points higher at 17,558, BSE Sensex finished 59 points north at 58,833 whereas Nifty Bank index surged 36 points and closed at 38,987 levels. Among sectors, power, metals, consumer durables and capital goods indices rose the most while realty and FMCG fell the most. Mid-cap and Small-cap indices mildly outperformed the Nifty even as the advance decline ratio was positive at 1.48.

As it would be the first trade session on Dalal Street after Jackson Hole Symposium, here we list out key things that one should know before stock market’s opening bell today:

Global markets cues

Wall Street extended its decline as US Fed Chairman Jerome Powell reiterated hawkish stance on interest rate hike. In Friday session on Wall Street, Dow Jones tumbled little over 3 per cent, tech heavy Nasdaq crashed 3.94 per cent, S&P 500 dipped 3.37 per cent whereas Small Cap 2000 nosedived 3.30 per cent. European and Asian stocks were narrowly mixed on Friday as traders and investors awaited a speech from Federal Reserve Chair Jerome Powell for clues on the gradient of the US central bank’s rate-hike path.

Asian markets early morning trend

In early morning deals on Monday, the Japanese Nikkei is down 2.91 per cent, South Korean Kospi is down 2.24 per cent, Hing Kong’s Hang Seng is up 1.01 per cent whereas Chinese Shanghai is trading flat.

SGX Nifty in early morning session

In early morning session, SGX Nifty is down by over 300 points to 17,352 levels, which signals weak opening for Indian stock market on Monday.

“Immediate support for SGX Nifty is placed at 17,250 while 17,050 will remain crucial support for the index. Likewise, immediate resistance for the index is placed at 17,580 levels whereas 17,750 is major support for SGX Nifty today, said Anuj Gupta, Vice President — Research at IIFL Securities.

Nifty technical outlook

“On daily charts, Nifty has formed an indecisive doji after a small fall. A breakout above/below 17727-17487 will determine the direction of the Nifty going forward,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“The bearish SHARL pattern on the NIFTY index is still intact. In addition; the index has breached previous week’s low after nine week and this indicates first sign of weakness. Also we are witnessing a reversal candlestick pattern on the weekly scale. We reiterate that; even a bare minimum correction of 38.6 per cent of the entire rally from 15,200 to 18,000 could lead to a bigger crack in the stocks. Thus, we maintain our stance that the prudent strategy can be to avoid fresh longs in index and book profits in trading bets,” said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Bank Nifty technical outlook

“Nifty Bank index remained under pressure during the first couple of sessions of the last week and retested 38,000 mark. However; the index recovered back to reclaim 39,000 mark and end the week extremely flat. We maintain a cautious stance on Nifty Bank index and below 38,000 we might see a corrective move toward 37,000 to 36,000 in the coming sessions. The view would be negated above 40,000 mark on closing basis,” Mehul Kothari of Anand Rathi said.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 26 August, major total Call open interest was seen at 17700 and 17800 strikes with total open interest of 151468 and 126166 contracts respectively. Major Call open interest addition was seen at 17700 and 17800 strikes which added 42961 and 34922 contracts respectively. No major Call unwinding was seen at strikes ranging from 17200 to 17800.

Nifty Put Option data

As per data shown by nseindia.com at 3.30 pm on 26 August, Major total Put open interest was seen at 17500 and 17400 strikes with total open interest of 99928 and 61880 contracts respectively. Major Put open interest addition was seen at 17500 and 17200 strikes which added 35374 and 31859 contracts respectively. No major Put unwinding was seen at strikes ranging from 17200 to 17800.

Nifty Bank Call Option data

Major total Call open interest was seen at 39300 and 39500 strikes with total open interest of 55360 and 103962 contracts respectively. Major Call open interest addition was seen at 39300 and 39500 strikes which added 33328 and 25307 contracts respectively. No major Call unwinding was seen at strikes ranging from 38500 to 39500.

Nifty Bank Put Option data

Major total Put open interest was seen at 39000 and 38500 strikes with total open interest of 69976 and 53914 contracts respectively. Major Put open interest addition was seen at 39000 and 38500 strikes, which added 28832 and 22096 contracts respectively. No major Put unwinding was seen at strikes ranging from 38500 to 39500.

FII DII data

Foreign institutional investors (FIIs) have net sold 51.12 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought 453.59 crore worth of shares on August 26, as per provisional data available on the NSE.

NSE F&O ban list

The National Stock Exchange (NSE) has added nil stock under its F&O ban list for trade date 29 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 up by 1.73 per cent to 3.087 whereas US 30 year bond yield is up by 0.69 per cent to 3.227.

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