BackTrade setup for Thursday: Nifty call put ratio to SGX Nifty outlook, key things to know before stock market opens today
Trade setup for Thursday: Nifty 50 index has maintained its ‘Higher Top Higher Bottom’ structure and hence, the short term trend remains positive, believe experts
PremiumTrade setup for Thursday: On account of strong buying in capital goods, IT and healthcare stocks, Indian stocks broke the two day losing streak on Wednesday session. NSE Nifty finished 157 points higher at 16,641 whereas BSE Sensex gained 547 points and closed at 55,816 levels. Bank Nifty surged 375 points and closed at 36,783 mark. Advance decline ratio improved to above 1:1, but broad market indices mildly underperformed against Nifty.
As the US Fed has raised interest rates by 75 bps in its monetary policy meeting on Wednesday, global markets including Dalal Street is expected to react to this US central bank's decision on Thursday session as the move was taken overnight.
Here we list out important things that one should know ahead of the Opening Bell today:
Global markets cues
Following US Fed interest rate hike, Wall Street recorded sharp upside move on Wednesday session. Dow Jones ended 1.37 per cent higher, Tech heavy Nasdaq index skyrocketed 4.06 per cent, S&P 500 went 2.62 per cent north whereas Small Cap 2000 surged 2.57 per cent on Wednesday. European and Asian markets rallied on Wednesday as a batch of resilient company earnings helped alleviate some of the wider caution in markets ahead of a pivotal Federal Reserve monetary-policy meeting.
Asian markets' early morning trend
In early morning deals on Thursday, the Japanese Nikkei is up 0.16 per cent, Hang Seng is down by 1.13 per cent whereas Shanghai market is off by 0.05 ,per cent.
SGX Nifty technical outlook
In early morning session on Thursday deals, SGX Nifty is quoting 118 points higher from its Wednesday close. This indicates that Indian markets may open on the higher side in the Opening Bell today.
“Immediate support for SGX Nifty today is placed at 16,600 whereas it has major support zone at around 16,450 levels. Likewise, the index is facing immediate hurdle at 16,900 while its major hurdle is place at 17,100 levels," said Anuj Gupta, Vice President — Research at IIFL Securities.
The IIFL Securities went on to add that the US Fed has raised interest rates by 75 bps and the global markets including Dalal Street is expected to react on the US Central Bank's overnight decision. However, he maintained that overall trend for SGX Nifty today is positive and the markets may open in positive zone in the Opening Bell today.
Nifty technical outlook
"Nifty 50 index has maintained its ‘Higher Top Higher Bottom’ structure and hence, the short term trend remains positive. On the higher side, if this structure continues the index could approach 16,800 followed by 17,000 levels in the near term. On the other hand, in case there’s any negative reaction to the event then 16,380 and 16,280 will be the immediate supports to watch out," said Ruchit Jain, Lead Research at 5paisa.com.
Bank Nifty technical outlook
"High risk traders can assume small range of Bank Nifty index in between 36,300 to 37,000 levels whereas broader range of the index is placed in between 36,200 to 37,200 levels," said Mehul Kothari, AVP — Technical Research at Anand Rathi.
Nifty Call and Put data
"Maximum total Call open interest was seen at 16600, 16900 and 17000 strikes with total open interest of 104978, 138536 and 227228 contracts respectively. Maximum Put open interest addition was seen at 16500, 16400 and 16000 strikes which added 176377, 155860 and 200958 contracts respectively," said Anuj Gupta of IIFL Securities.
Bank Nifty Call and Put data
"Maximum total Call open interest was seen at 37000, 37500 and 38000 strikes with total open interest of 106700, 89267 and 104252 contracts respectively. Maximum Put open interest addition was seen at 36500, 36000 and 35500 strikes which added 114539, 125362 and 74689 contracts respectively," said Anuj Gupta.
FII DII data
Foreign institutional investors (FIIs) have net sold ₹436.81 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought ₹712.03 crore worth of shares on July 26, as per provisional data available on the NSE.
NSE F&O ban on 28th July 2022
The National Stock Exchange (NSE) has added Delta Corp and Indiabulls Housing Finance stocks under its F&O ban list for trade date 28th July 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 years bond yield is up by 1.13 per cent at 2.763 whereas US 30 year bond yield is up by 1.34 per cent at 3.042.
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