Trade setup for Thursday: Following weak Chinese inflation data, Indian stock market trade choppy on Wednesday session. Nifty 50 index ended 9 points higher at 17,534 whereas BSE Sensex shed 35 points and closed at 58,817 levels. Nifty Bank index finished 50 points northward at 38,287 levels. Among sectors, metals and capital goods gained the most while IT and realty fell the most. Mid-cap and small-cap indexes mildly underperformed the Nifty even as the advance decline ratio remained below 1:1 at 0.8.
Here we list out key things that you should know before stock market’s opening bell today:
Global markets cues
On Wall Street, Dow Jones surged 1.63 per cent, Nasdaq shot up 2.89 per cent, S&P 500 gained 2.13 per cent whereas Small Cap 2000 finished 3.19 per cent higher on Wednesday session. European equity markets were flat on Wednesday as investors braced themselves for the latest US inflation data, which are expected to shape the pace of future monetary tightening by the Federal Reserve. Asian markets slipped on Wednesday after weak inflation readings from China raised concerns over sluggish demand in China, with focus now turning to key U.S. inflation data later in the day.
Asian markets in early morning session
In early morning deals on Thursday, the Japanese Nikkei lost 0.65 per cent, South Korean Kospi gained 1.34 per cent, Hong Kong’s Hang Seng surged 1.18 per cent whereas Chinese Shanghai added 0.33 per cent.
SGX Nifty outlook
SGX Nifty is trading flat in early morning session on Thursday. In early deals, SGX Nifty today is 0.05 per cent up at 17,744 levels.
Nifty technical outlook
“Nifty once again has formed a hanging man pattern after a rise, suggesting a possible halt to the upside move. The US CPI numbers due this evening could impact the direction of global markets. Nifty could remain in the 17399-17600 band for the near term,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Nifty Bank technical outlook
“Short range of Nifty Bank index is placed between 37,700 to 38,800 whereas broad range of the index is placed between 37,500 to 39,000,” said Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher. Vaishali said that immediate support for Nifty Bank index is placed at 37,700 whereas immediate resistance for the index is placed at 38,800 levels.
Nifty Call Put Option data
“NIFTY FUT’s continues to hold above 17500 levels and soon likely new ATH to be tested again. Option chain for the weekly expiry suggests 18000CE/17800CE having overall maximum exposure of 1.7 lakh contracts and 1.4 lakh contracts respectively, with highest fresh additions of over 49 thousand contracts seen at 17800CE. PE writers active at 17400PE/17500PE – with over 1.3 lakh contracts each and no major unwinding seen,” Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher.
Nifty Call Put ratio
“PCR OI at 17,500 strike is well above 1, which hints on the upside rally to resume for the next session as well,” Shilpa Rout said.
Bank Nifty Call Put Option data
“BANK NIFTY FUT Option chain reflects on PE writers being active at 38000PE with more than a lakh contracts, however 38300PE being the most aggressive one – more than 40 thousand contracts added fresh. Call writers standing tall at 38500CE/39000CE over a lakh contracts on each strike, also hinting on higher targets till 38800/39100 for the expiry,” Shilpa Rout of Prabhudas Lilladher.
FII DII data
Foreign institutional investors (FIIs) have net bought ₹1,061.88 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold ₹768.45 crore worth of shares on August 10, as per provisional data available on the NSE.
NSE F&O ban on 4th August 2022
The National Stock Exchange (NSE) has added Balrampur Chini and Delta Corp stock under its F&O ban list for trade date 11th 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 0.05 per cent to 2.785 whereas US 30 year bond yield is up by 0.15 per cent to 3.037.
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