Trade set-up for Wednesday August 24, 2022: SGX Nifty, other things to know before the stock market opening bell

Here we list the key things you need to know before the trading bell opens today:

Global market signals

On Wall Street, stocks are trading flat after three successive losses. The Dow Jones ended down 0.47%, the tech-heavy Nasdaq ended flat losing 0.27 points, the S&P 500 lost 0.22% while the Small Cap 2000 ended up 0.39%.

European stock markets traded mixed on Tuesday following the release of key data on economic activity, but the overall tone remains cautious given fears of runaway inflation, soaring gasoline prices and a slowdown of growth. S&P’s composite purchasing managers’ indexes for Germany and France fell to 47.6 and 49.8, respectively, both below the 50 level that typically separates growth from contraction. This was a 26-month low for Germany and an 18-month low for France.

Asian stocks were trading broadly lower on Tuesday, echoing a broad sell-off on Wall Street amid speculation of another U.S. Federal Reserve interest rate hike.

Asian markets in morning session

In early morning trading on Wednesday, Japan’s Nikkei is down 0.15%, South Korea’s Kospi is up 0.22%, Hong Kong’s Hang Seng is down 0.11% while the Chinese Shanghai is down 0.14%.

SGX Nifty Technical Outlook

SGX Nifty is trading flat in early morning offers on Wednesday. The index is down almost 20 points at 17,585 levels.

Speaking on the outlook for SGX Nifty, Anuj Gupta, Vice President – Research at IIFL Securities, said: “Overall sentiment for SGX Nifty today is quite positive. The small range of SGX Nifty today lies between 17,420 and 17,700 while a wider range of the index can be assumed between 17,200 and 17,880 levels.”

Clever technical insights

Speaking on Nifty’s technical outlook for Wednesday, Rajesh Palviya, VP – Technical and Derivative Research at Axis Securities, said, “Nifty has rallied strongly from 17,345 levels, coinciding with the 20-day SMA ( 17385,) which remains a crucial support area in the near. The overall short to medium term trend remains bullish, and every short term correction remains a buying opportunity. He said that currently the Nifty 50 index is well placed above the 20-, 50-, 100- and 200-day SMAs, confirming the bullish sentiments.From current levels, the immediate support zone is placed around 17,400-17,200 levels. , this buying momentum could reach the 17,800-18,000 levels in the coming sessions.

Bank Nifty Technical Outlook

On the Nifty Bank Index, Rajesh Palviya of Axis Securities said: “On the daily chart, the index formed a bullish candle and closed above its previous session high, representing a positive bias. The index is moving in a higher high and higher low formation on the daily chart indicating a short term uptrend The chart pattern suggests that if Bank Nifty breaks through and holds above the 38,900 level, it would witness buying, driving the index towards the 39,200 to 39,400 levels. However, if the index breaks below the 38,500 level, it would witness selling, which would bring the index towards 38 200 to 38,000.”

Rajesh Palviya added that Bank Nifty is trading above 20, 50, 100 and 200-day SMA, indicating a positive bias in the short to medium term. Bank Nifty continues to remain in a short-term uptrend, so buying on the downside remains our preferred strategy.

Smart call data

According to data presented by nseindia.com as of 3:30 p.m. on August 23, major total open interest for calls was seen at 17,700, 17,800 and 17,900 strikes with total open interest of 111,912, 145,027 and 148,850 contracts respectively. The addition of major call open interests was seen at the 17,900 strike, which added 24,190 contracts. An appeal outcome was observed at 17,500 and 17,700 strikes which lost 6,679 and 19,992 contracts respectively.

Smart Put Data

Total Put open interest was seen at 17600, 17500 and 17400 strikes with total open interest of 127548, 165006 and 137905 contracts respectively. The major addition of open put interests was seen at 17,500 and 17,400 strikes, which added 56,371 and 62,830 contracts respectively. The unwinding of sales was observed at 17,800 strikes, resulting in the loss of 9,368 contracts.

Nifty Bank call option data

The major total open interest on calls was observed at 38,800, 39,000 and 39,200 strikes with total open interest of 45,459, 92,849 and 48,313 contracts respectively. The addition of major call open interests was seen at 38,800 and 39,000 strikes, which added 9,515 and 2,484 contracts respectively. The outcome of the calls was observed at 38300, 38400 and 38500 strikes which lost 12816, 19948 and 34637 contracts respectively.

Nifty Bank Put Option Data

According to data presented by nseindia.com as of 3:30 p.m. on August 23, total major selling open interest was seen at 38,600, 38,500 and 38,200 strikes with total open interest at 55,250, 108,238 and 58 877 contracts respectively. The major addition of open put interests was seen at 38,500 and 38,600 strikes, which added 33,732 and 39,833 contracts respectively. No major unwinding of the put was seen on strikes ranging from 38200 to 39200.

FII DII Data

Foreign Institutional Investors (IFIs) bought 563 crore of shares, as domestic institutional investors (DIIs) sold off 215.2 crores in shares on August 23, according to preliminary data available on the NSE.

Banned by F&O NSE on August 22, 2022

The National Stock Exchange (NSE) has not added any stocks to its F&O blacklist for the August 24, 2022 trade date. Blacklisted securities in the F&O segment include companies in which the stock has exceeded 95 % of market-wide position limit. .

U.S. bond yield

The US 10-year bond yield fell 0.02% to 3.053 while the US 30-year bond yield rose 0.15% to 3.261.

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