Trade setup for Sept 15, 2022: Things to know before stock market’s Opening Bell

Market


Trade setup for Thursday: Following brutal sell-off in the US markets, Indian stock market opened downside but showed a remarkable recovery on Wednesday session. Though Dalal Street ended in red zone, Indian markets fell the least in the Asian region. NSE Nifty lost 66 points but managed to end above the psychological 18,000 levels. BSE Sensex corrected 224 points and finished at 60,346 mark whereas Nifty Bank index went up 532 points and closed at 41,405 levels. Broad market continued to be subdued as advance decline ratio was negative at 0.72:1 and mid-cap and small-cap indices ended marginally in the negative.

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

Global markets cues

After heavy sell-off on Tuesday session, Wall Street ticked higher on Wednesday. Dow Jones added 0.10 per cent, Nasdaq gained 0.74 per cent, S&P 500 surged 0.34 per cent whereas Small Cap 2000 went up 0.16 per cent. Markets in Asia Pacific fell on Wednesday, following a major drop in US markets as investors reacted to American inflation going higher than expected. A semblance of calm returned to markets on Wednesday in Europe after the carnage sparked by hotter-than-expected American inflation that prompted investors to reassess the outlook for interest rates and economic growth. European equities were mildly lower, tracking a plunge in US stocks.

Inflation in India

“India’s wholesale inflation fell to the lowest since September last year, led by a broad-based decline in prices of most commodities. Inflation—as measured by the Wholesale Price Index—stood at 12.4% in August compared with 13.9% in July 2022 and 11.64% in August 2021,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

SGX Nifty today

In early morning deals on Thursday, SGX Nifty is quoting 18,010 that is 20 points higher from its Wednesday close. This gap up opening indicates positive opening on Dalal Street today.

Nifty technical outlook

“Nifty recovered very well from the morning lows but succumbed to afternoon selling. It faced resistance from the high of the previous day. Now 18088-18092 could be the resistance for the near term while 17765 could be the support. Broader market is showing the first signs of distribution,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty Bank technical outlook

“Bank Nifty index has immediate support placed at 39,200 levels whereas the banking index has strong support at 38,000 mark. Bank Nifty is forming higher top higher bottom on chart pattern, which indicates further upside in the index,” said Anuj Gupta, Vice President — Research at IIFL Securities.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 14 September, major total Call open interest was seen at 18100, 18200 and 18300 strikes with total open interest of 140254, 139889 and 130919 contracts respectively. Major Call open interest addition was seen at 18100 and 18200 strikes which added 49705 and 45505 contracts respectively. Call unwinding was seen at 17900 strike which shed 14050 contracts respectively.

Nifty Put Option data

Major total Put open interest was seen at 18000, 17900 and 17800 strikes with total open interest of 113684, 123796 and 119698 contracts respectively. Major Put open interest addition was seen at 17700 and 17800 strikes which added 22972 and 18309 contracts respectively.

Nifty Bank Call Option data

Major total Call open interest was seen at 41500, 41600 and 41800 strikes with total open interest of 119640, 50957 and 66232 contracts respectively. Major Call open interest addition was seen at 41500 and 41800 strikes which added 46406 and 34595 contracts respectively.

Nifty Bank Put Option data

Major total Put open interest was seen at 41200, 41000 and 40800 strikes with total open interest of 51143, 97139 and 67828 contracts respectively. Major Put open interest addition was seen at 41200 and 41000 strikes which added 46406 and 24459 contracts respectively.

FII DII data

Foreign institutional investors (FIIs) have net sold 1,397.51 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought 187.58 crore worth of shares on September 14, as per the data available on the NSE.

NSE F&O ban stock list today

The National Stock Exchange (NSE) has added Delta Corp, RBL Bank and Indiabulls Housing Finance stocks under its F&O ban list for trade date 15th September 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 trading flat around its Wednesday close whereas US 30 year bond yield is down by 0.08 per cent to 3.466.

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