Trade setup for Tuesday: SGX Nifty, other things to know before stock market’s Opening Bell today | Mint – Mint

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

Global markets cues

On Wall Street, US stocks continue to trade lower expecting US Fed’s interest rate hike after the Jackson Hole Symposium. Dow Jones went down 0.57 per cent, Nasdaq corrected 1.02 per cent, S&P 500 went down 0.67 per cent whereas Small Cap 2000 shed 0.70 per cent on Monday. The CBOE’s volatility index, Wall Street’s fear gauge, hit a seven-week high on Monday morning – up 7.4 points at 27.46, on mounting risk of more aggressive rate hikes from the Federal Reserve and European Central Bank.

“Global stocks fell, treasury yields climbed and global currencies lost ground against the dollar on Monday as investors took fright following hawkish comments from some of the world’s most powerful central banks. European Central Bank board member Isabel Schnabel warned over the weekend that central banks must now act forcefully to combat inflation, even if that drags their economies into recession,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Asian markets early morning trends

In early morning deals on Tuesday, Japanese Nikkei is up 1.02 per cent, Hong Kong’s Hang Seng is down 0.73 per cent whereas Chinese Shanghai went off 0.02 per cent.

SGX Nifty today

In early morning session, SGX Nifty is trading flat and the index is quoting 17,410, 29 points higher from its Monday close. 

Nifty technical outlook

“On the daily chart, Nifty 50 index has formed a bullish candle. However, it continues to move in a lower high-low formation, indicating a negative bias. The index is moving in a Lower Top and Lower Bottom formation on the daily chart, indicating a negative bias. The chart pattern suggests that if the Nifty crosses and sustains above the 17400 level, it would witness buying, leading the index towards 17500-17600 levels. However, if the index breaks below the 17200 level, it would witness selling, which would take the index towards 17100-17000,” said Rajesh Palviya, VP – Technical and Derivative Research at Axis Securities.

Rajesh Palviya of Axis Securities went on to add that Nifty is trading below 20-day SMA, indicating negative bias in the short to medium term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy.

“The daily strength indicator RSI has turned negative from the overbought territory and is below its reference line, indicating profit booking,” Rajesh Palviya said.

Nifty Bank technical outlook

“On the daily chart, the Nifty Bank index has formed a bullish candle. However, it continues to form a lower High-Low, compared to the previous session’s indicating negative bias. The index is moving in a Lower Top and Lower Bottom formation on the daily chart, indicating negative bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 38400 level, it would witness buying, leading the index towards 38600-38800 levels. However, if the index breaks below the 38200 level, it would witness selling, which would take the index towards 38000-37800,” said Rajesh Palviya. He went on to add that Bank Nifty is trading below 20-day SMA’s, which indicates negative bias in the short term. Bank Nifty remains in an uptrend in the short term, so buying on dips continues to be our preferred strategy.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 29 August, major total Call open interest was seen at 17400, 17500 and 17700 strikes with total open interest of 77293, 161271 and 168722 contracts respectively. Major Call open interest addition was seen at 17400 and 17500 strikes which added 72308 and 124835 contracts respectively. No major Call unwinding was seen at strikes ranging from 17000 to 17600.

Nifty Put Option data

Major total Put open interest was seen at 17300 and 17200 strikes with total open interest of 159478 and 145586 contracts respectively. Major Put open interest addition was seen at 17300 and 17200 strikes which added 103781 and 73212 contracts respectively. Put unwinding was seen at 17500 and 17600 strikes which shed 34959 and 35820.

Bank Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 29 August, Major total Call open interest was seen at 38400 and 38500 strikes with total open interest of 47864 and 102777 contracts respectively. Major Call open interest addition was seen at 38400, 38500 and 39000 strikes which added 46619, 89617 and 60357 contracts respectively. No major Call unwinding was seen at strikes ranging from 37900 to 38700.

Bank Nifty Put Option data

Major total Put open interest was seen at 38200 and 38000 strikes with total open interest of 71949 and 140482 contracts respectively. Major Put open interest addition was seen at 38200 and 38000 strikes which added 47352 and 83905 contracts respectively. No major Put unwinding was seen at 38600 strike which shed 4749 contracts.

FII DII data

Foreign institutional investors (FIIs) have net sold 561.22 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought 144.08 crore worth of shares on August 29, 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 30 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 0.67 per cent to 3.089 whereas US 30 year bond yield is down by 0.53 per cent to 3.230.

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