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Trade setup for Wednesday, 24th August 2022: SGX Nifty, other things to know before stock market’s Opening Bell | Mint – Mint

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

Global markets cues

On Wall Street, stocks trade flat after three successive losses. Dow Jones finished 0.47 per cent lower, tech-heavy Nasdaq ended flat losing 0.27 points, S&P 500 lost 0.22 per cent whereas Small Cap 2000 ended 0.39 per cent higher.

European stock markets traded in a mixed fashion Tuesday following the release of key economic activity data, but the overall tone remains one of caution given concerns of red-hot inflation, soaring gas prices and slowing growth. S&P’s composite purchasing managers indices for Germany and France fell to 47.6 and 49.8, respectively, both below the 50 level that typically separates growth from contraction. That was a 26-month low for Germany and an 18-month low for France.

Asian shares were trading largely lower Tuesday, echoing a broad sell-off on Wall Street amid speculation about another interest rate raise from the U.S. Federal Reserve.

Asian markets in early morning session

In early morning deals on Wednesday, the Japanese Nikkei is down 0.15 per cent, South Korean Kospi is up 0.22 per cent, Hong Kong’s Hang Seng is down 0.11 per cent whereas Chinese Shanghai is off 0.14 per cent.

SGX Nifty technical outlook

SGX Nifty is trading flat in early morning deals on Wednesday. The index is down by near 20 points to 17,585 levels.

Speaking on SGX Nifty outlook, Anuj Gupta, Vice President — Research at IIFL Securities said, “Overall sentiment for SGX Nifty today is sideways to positive. Small range of SGX Nifty today lies in between 17,420 to 17,700 whereas broader range of the index can be assumed in between 17,200 to 17,880 levels.”

Nifty technical outlook

Speaking on Nifty’s technical outlook for Wednesday, Rajesh Palviya, VP – Technical & Derivative Research at Axis Securities said, “Nifty rebounded sharply from 17,345 levels, coinciding with the 20-day SMA (17385,) which remains a crucial support zone in the near term. The overall short to medium-term trend continues to remain bullish, and every short-term correction remains a buying opportunity.” He said that currently, Nifty 50 index is well placed above 20, 50, 100, and 200-day SMA, which reconfirms bullish sentiments. From current levels, the immediate support zone is placed around 17,400 to 17,200 levels. On the upside, this buying momentum may escalate towards 17,800 to 18,000 levels in upcoming sessions.

Bank Nifty technical outlook

On Nifty Bank index, Rajesh Palviya of Axis Securities said, “On the daily chart, the index has formed a bullish candle and has closed above its previous session’s high representing a positive bias ahead. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short-term up trend. The chart pattern suggests that if Bank Nifty crosses and sustains above the 38,900 level, it would witness buying, leading the index towards 39,200 to 39,400 levels. However, if the index breaks below the 38,500 level, it would witness selling, which would take the index towards 38,200 to 38,000 mark.”

Rajesh Palviya went on to add that Bank Nifty is trading above 20, 50, 100, and 200-day SMA, indicating positive bias in the short to medium term. Bank Nifty continues to remain 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 at 3.30 pm on 23 August, major total Call open interest was seen at 17700, 17800 and 17900 strikes with total open interest of 111912, 145027 and 148850 contracts respectively. Major Call open interest addition was seen at 17900 strike which added 24190 contracts. Call unwinding was seen at 17500 and 17700 strikes which shed 6679 and 19992 contracts respectively.

Nifty Put Option data

Major total Put open interest was seen at 17600, 17500 and 17400 strikes with total open interest of 127548, 165006 and 137905 contracts respectively. Major Put open interest addition was seen at 17500 and 17400 strikes which added 56371 and 62830 contracts respectively. Put unwinding was seen at 17800 strike which shed 9368 contracts.

Nifty Bank Call Option data

Major total Call open interest was seen at 38800, 39000 and 39200 strikes with total open interest of 45459, 92849 and 48313 contracts respectively. Major Call open interest addition was seen at 38800 and 39000 strikes which added 9515 and 2484 contracts respectively. Call unwinding was seen at 38300, 38400 and 38500 strikes which shed 12816, 19948 and 34637 contracts respectively.

Nifty Bank Put Option data

As per data shown by at 3.30 pm on 23 August, Major total Put open interest was seen at 38600, 38500 and 38200 strikes with total open interest of 55250, 108238 and 58877 contracts respectively. Major Put open interest addition was seen at 38500 and 38600 strikes which added 33732 and 39833 contracts respectively. No major Put unwinding was seen at strikes ranging from 38200 to 39200.

FII DII data

Foreign institutional investors (FIIs) have net bought 563 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 215.2 crore worth of shares on August 23, as per provisional data available on the NSE.

NSE F&O ban on 22nd August 2022

The National Stock Exchange (NSE) has added no stock under its F&O ban list for trade date 24th 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 0.02 per cent to 3.053 whereas US 30 year bond yield is up by 0.15 per cent to 3.261.

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