Trade setup for Aug 19, 2022: Things to know before stock market's Opening Bell
Premium- Trade setup for Friday: Nifty could rise towards 18,115 over the next few sessions, believe experts
Trade setup for Friday: Indian stock market extended its winning streak on eighth straight session on Thursday, longest in last 20 months. Nifty opened lower and swung between gains and losses for the bulk of the session before closing near day's high of 17,956 whereas BSE Sensex finished 37 points higher at 60,298 levels. Nifty Bank index gained 194 points and closed at 39,656 mark. Mid-cap and small-cap indices rose by 0.34 per cent and 0.42 per cent respectively, outperforming the Nifty even as the advance decline ratio was positive at 1.23:1.
Here we list out key things that you should know before stock market's opening bell today:
Global markets cues
Wall Street trade almost flat on entire Thursday session. Dow Jones ended ended 0.06 per cent higher whereas Nasdaq surged 0.21 per cent. S&P 500 gained 0.23 per cent while Small Cap 2000 shot up 0.71 per cent.
European stocks recovered from early losses. Euro zone inflation reached a new record high of 8.9 per cent year-on-year in July. The Philippines central bank has raised its interest rate on its overnight reverse repurchase facility by 50 basis points to 3.75 per cent. Asian stocks fell on Thursday morning, after minutes from the last US Federal Reserve meeting indicated the central bank would prioritise fighting inflation ahead of economic growth for longer than some investors had hoped.
Nifty technical outlook
"Nifty made a double top compared to the previous session but ended marginally higher. Large volumes and range move mean that a lot of churning seems to be happening between sectors and stocks. With no reversal signs on the horizon, Nifty could rise towards 18,115 over the next few sessions. On the other hand, a breach of 17,833 could mean faster downsides," Deepak Jasani at Head of Retail Research, HDFC Securities.
Nifty Bank technical outlook
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"Support for Nifty Bank index is placed at 39,250 to ₹39,300 levels whereas the index is facing hurdle at 40,100 to 40,150 mark," said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher.
Nifty Call Option data
As per data shown by nseindia.com at 3.30 pm on 18 August, major total Call open interest was seen at 18000, 18100 and 18200 strikes with total open interest of 130337, 63197 and 73110 contracts respectively. Major Call open interest addition was seen at 18000 and 18200 strikes which added 62413 and 34500 contracts respectively. Call unwinding was seen at 17700 strike which shed 3262 contracts.
Nifty Put Option data
As per data shown by nseindia.com at 3.30 pm on 18 August, Major total Put open interest was seen at 17700, 17800 and 17900 strikes with total open interest of 49500, 90441 and 92045 contracts respectively. Major Put open interest addition was seen at 17800 and 17900 strikes which added 45041 and 56969 contracts respectively. No major Put unwinding was seen at strikes ranging from 17600 to 18200.
Nifty Bank Call Option data
As per data shown by nseindia.com at 3.30 pm on 18 August, Major total Call open interest was seen at 40000 and 40200 strikes with total open interest of 48764 and 38790 contracts respectively. Major Call open interest addition was seen at 40200 and 40500 strikes which added 31498 and 15248 contracts respectively. Call unwinding was seen at 39300 and 39400 strikes which shed 2541 and 3408 contracts respectively.
Nifty Bank Put Option data
As per data shown by nseindia.com at 3.30 pm on 18 August, Major total Put open interest was seen at 39500 and 39200 strikes with total open interest of 45366 and 22417 contracts respectively. Major Put open interest addition was seen at 39500 and 39000 strikes which added 28619 and 16721 contracts respectively. No major Put unwinding was seen at strikes ranging from 39200 to 40200.
Foreign institutional investors (FIIs) have net sold ₹1,706 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought ₹470.79 crore worth of shares on August 17, as per provisional data available on the NSE.
NSE F&O ban on 19th August 2022
The National Stock Exchange (NSE) has added Balrampur Chini and Delta Corp stock under its F&O ban list for trade date 19th 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 0.14 per cent to 2.884 whereas US 30 year bond yield is down by 0.07 per cent to 3.143.
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