Trade setup for Thursday: SGX Nifty, other things to know before stock market's Opening Bell today
4 min read . Updated: 08 Sep 2022, 07:06 AM IST
Premium- Trade setup for Thursday: Nifty could face resistance in the 17,696 to 17,764 band while 17,468 could provide support in the near term, believe experts
Trade setup for Thursday: Extending volatile and range-bound trend on third successive session, Indian stock market ended with a minor loss on Wednesday. Nifty 50 index corrected 31 points and closed at 17,624 levels whereas BSE Sensex shed 168 points and closed at 59,028 mark. Nifty Bank index dipped 210 points and finished at 39,455 levels. Broader market outperformed Nifty with Mid-cap index rising 0.46 per cent and Small-cap index rising 0.79 per cent. Advance decline ration finished in positive zone after the end of Wednesday session.
Here we list out key things in regard to trade setup for Thursday session that one should know before stock market's opening bell today:
Global markets cues
In the US markets, Wall Street snapped seven days decline and finished in positive territory on Wednesday. Dow Jones surged 1.40 per cent, Nasdaq shot up 2.14 per cent, S&P 500 went up 1.83 per cent whereas Small Cap 2000 finished 2.16 per cent higher.
European and Asian equities came under pressure on Wednesday after worse than expected Chinese exports data added to concerns over the health of the global economy. China's exports and imports lost momentum in August as surging inflation crippled overseas demand and new Covid curbs and heatwaves disrupted output, reviving downside risks for the shaky economy. Exports grew rose 7.1 per cent last month compared with growth of 18 per cent in July. Imports rose only 0.3 per cent in August from 2.3% in the month prior. This led to a narrower trade surplus of $79.39 billion, compared with a $101.26 billion surplus in July.
Asian markets cues
In early morning session on Wednesday, Japanese Nikkei is up near 2 per cent, Hong Kong's Hang Seng is down 0.03 per cent whereas Chinese Shanghai went off 0.05 per cent.
SGX Nifty today
In early morning deals on Wednesday, SGX Nifty index is quoting 13 points lower at 17,738 that signals yet another range-bound session on Thursday.
Nifty technical outlook
"Nifty formed a lower top lower bottom candle on Sept 07 compared to the previous session but closed only nominally lower. Nifty is looking for direction over the past few days and has outperformed the other countries by recovering from lows – whether intra day or otherwise. Nifty could face resistance in the 17,696 to 17,764 band while 17,468 could provide support in the near term," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"The market breadth has been positive but inspite of that, the Nifty 50 index has been restricted to move higher. This is primarily because of factors such as the Rising Dollar Index, short formations by FIIs in the index futures segment and weak global markets. The index is now trading within the range of 17,800 to 17,400 and a breakout beyond the same is required for a directional move. Hence, until we see a breakout on either side, traders are advised to be stock specific and avoid index directional trades. The intraday supports for Nifty for the coming session are placed around 17,520 and 17,420 while resistances are seen around 17,690 and 17,760," said Ruchit Jain, Lead Research at 5paisa.com.
Bank Nifty technical outlook
"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," said Rajesh Palviya, VP - Technical and Derivative Research, Axis Securities.
On pivot levels in regard to Nifty Bank index, Mehul Kothari, AVP — Technical Research at Anand Rathi said, "Support for the Nifty Bank index is placed at 39,000 to 39,100 levels whereas it is facing hurdle at 39,700 to 39,800 zone. So, broader range of the banking index can be assumed between 39,000 to 39,800."
Nifty Call Option data
As per data shown by nseindia.com at 3.30 pm on 07 September, major total Call open interest was seen at 17700, 17800 and 17900 strikes with total open interest of 135803, 143645 and 141540 contracts respectively. Major Call open interest addition was seen at 17850 and 18000 strikes which added 33350 and 68311 contracts respectively. Call unwinding was seen at 17800 strike which shed 22535 contracts.
Nifty Put Option data
Major total Put open interest was seen at 17600, 17500 and 17400 strikes with total open interest of 117223, 163158 and 107454 contracts respectively. Major Put open interest addition was seen at 17600 and 17500 strikes which added 38796 and 44511 contracts respectively. Put unwinding was seen at 17700 strike which shed 18208 contracts.
Nifty Bank Call Option data
Major total Call open interest was seen at 39600, 39800 and 40000 strikes with total open interest of 62377, 67965 and 140487 contracts respectively. Major Call open interest addition was seen at 39600 and 39700 strikes which added 38459 and 14883 contracts respectively.
Nifty Bank Put Option data
Major total Put open interest was seen at 39500, 39300 and 39000 strikes with total open interest of 97583, 67918 and 105210 contracts respectively. Major Put open interest addition was seen at 39400 and 39300 strikes which added 26294 and 27797 contracts. Put unwinding was seen at 39700 strike which shed 22224 contracts.
FII DII data
Foreign institutional investors (FIIs) have net bought ₹758.37 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold ₹138.67 crore worth of shares on September 7, 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 8th 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 0.24 per cent to 3.273 whereas US 30 year bond yield is up by 0.48 per cent to 3.421.
