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Trade setup for Wednesday: Key things to know before stock market’s Opening Bell today

September 7, 2022

Trade setup for Wednesday: After a day of swing on both sides, the range-bound trend with high volatility continued in Indian stock market on Tuesday. Nifty 50 index finished 10 points lower at 17,655, BSE Sensex shed 48 points and closed at 59,196 whereas Nifty Bank index lost 139 points and closed at 39,666 levels. Among sectors, power, oil & gas and metals indices rose the most while banks, IT and FMCG indices fell the most. Mid-cap index rose 0.47 per cent outperforming the Nifty but advance decline ratio was negative at 0.96:1.

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

Global markets cues

On fear of recession risk, wall street remained flat and ended in red territory. Dow Jones finished 0.55 per cent lower, tech-heavy Nasdaq finished 0.74 per cent lower, S&P 500 lost 0.41 per cent whereas Small Cap 2000 tumbled 0.95 per cent on Tuesday. Asian markets were largely higher though nominally. European markets rose cautiously on Tuesday as investors continued to assess recession risks in the region and as previously surging gas prices slipped back 10 per cent.

The Reserve Bank of Australia earlier Tuesday raised its cash target rate by 50 basis points to 2.35 per cent, its highest level since 2014, and the fifth interest rate increase so far this year.

Asian markets cues

In early morning session on Wednesday, Japanese Nikkei is down 1.15 per cent, South Korean Kospi lost 1.49 per cent whereas Chinese Shanghai is trading flat around its Tuesday close.

SGX Nifty technical outlook

In early morning deals on Wednesday, SGX Nifty is down by 140 points to 17,535 levels hat indicates weak opening of the Indian stock market when it opens today.

Nifty technical outlook

“Nifty, though having closed almost flat, formed higher top higher bottom formation compared to the previous session. It formed a high wave doji candle suggesting indecision after a rise. US markets are slated to open today post a holiday on Monday and could influence the opening of our markets on Wednesday. Nifty could remain in the 17,540 to 17,777 band for the near term,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty Bank technical outlook

“Broader range of Nifty Bank index is placed between 39,400 to 40,100 levels whereas high risk traders can assume short range of teh banking index in between 39,500 to 40,000 mark,” said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 06 September, higher total Call open interest was seen at 17700, 17800 and 17900 strikes with total open interest of 136910, 165809 and 109381 contracts respectively. Major Call open interest addition was seen at 17700, 17800 and 18000 strikes which added 40924, 72863 and 33352 contracts respectively. Call unwinding was seen at 17600 strikes which shed 26987 contracts.

Nifty Put Option data

Major total Put open interest was seen at 17600 and 17500 strikes with total open interest of 85059 and 130293 contracts respectively. Major Put open interest addition was seen at 17500 strike which added 21536 contracts. Put unwinding was seen at 17600 strikes which shed 24003 contracts.

Nifty Bank Call Option data

As per data shown by nseindia.com at 3.30 pm on 06 September, Major total Call open interest was seen at 39800 and 40000 strikes with total open interest of 88670 and 134370 contracts respectively. Major Call open interest addition was seen at 40000 and 40100 strikes which added 46598 and 33371 contracts respectively.

Nifty Bank Put Option data

Major total Put open interest was seen at 39600 and 39500 strikes with total open interest of 48427 and 89981 contracts respectively. Major Put open interest addition was seen at 39500 and 39400 strikes which added 31482 and 11917 contracts. Put unwinding was seen at 39800 strikes which shed 1799 contracts.

FII DII dates

Foreign institutional investors (FIIs) have net bought 1,144.53 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought 632.97 crore worth of shares on September 6, as per provisional data available on the NSE.

NSE F&O ban list

The National Stock Exchange (NSE) has added Delta Corp stock under its F&O ban list for trade date 7th 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 up by 0.10 per cent to 3.343 whereas US 30 year bond yield is up by 0.24 per cent to 3.491.

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