Home / Markets / Stock Markets /  Trade setup for Wednesday: US inflation data, other things to know before stock market's Opening Bell

Trade setup for Wednesday: Following positive global cues, Indian stock market finished higher on fourth successive session on Tuesday. Nifty 50 index ended 133 points higher at 18,070 whereas BSE Sensex shot up 455 points and closed at 60,571 levels. Nifty Bank index finished 299 points north at 40,873 mark. Among sectors, metals, banks, capital goods and FMCG indices rose the most while oil & gas and realty indices fell the most. Broad market underperformed with mid-cap and small-cap indices rising 0.24 per cent and 0.32 per cent respectively. Advance decline ratio was just above 1:1.

Here we list out key things that you should know ahead of stock market's opening bell today:

Global markets cues

The Wall Street witnessed brutal sell-off after US inflation data for August came higher than the market expectations. Dow Jones crashed 3.94 per cent, Nasdaq nosedived 5.16 per cent, S&P 500 lost 4.32 per cent whereas Small Cap 2000 lowered 4.20 per cent. Asian equities extended the global rally in risk assets amid speculation Tuesday’s US consumer price data will support bets that inflation there is near peaking. European stocks advanced on Tuesday for the fourth straight session, with underlying sentiment boosted by M&A talk and hopes for a softer US inflation reading.

US inflation data

“The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to sharp correction in energy prices. However, decline in energy prices was offset by higher cost of food (+0.8% m/m) and shelter costs (+0.7% m/m). High costs of food, housing, transportation and other services reiterate the strong consumer demand and elevated service sector price pressures. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September," said Ritika Chhabra, Economist and Quant Analyst at Prabhudas Lilladher.

Asian markets cues

In early morning session on Wednesday, Japanese Nikkei is down 2.10 per cent, Hong Kong's Hang Seng is off 2.29 per cent whereas Chinese Shanghai went off 0.74 per cent.

SGX Nifty today

In early morning deals on Wednesday, SGX Nifty is down 321 points at 17,786 levels, indicating gap down opening on Dalal Street.

Nifty technical outlook

"The Nifty surpassed the hurdle of 18000 mark finally to register a Higher High on the daily chart and continue the momentum. The oscillator still continues to hint at positive momentum, but the readings on the lower time frame chart have reached the overbought zone. The immediate support for Nifty is now placed around 17965 while resistance will be seen around 18135 and 18220," said Ruchit Jain, Lead Research at 5paisa.com.

Nifty Bank technical outlook

"Bank Nifty carried on with the momentum further to almost touch the 41,000 levels with HDFC Bank picking up momentum and improving the bias to anticipate for the next upward targets of 41,500 to 41,600 levels in the coming days. Bank Nifty would have the daily range of 40,400 to 41,300 levels," said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 13 September, major total Call open interest was seen at 18100, 18200 and 18300 strikes with total open interest of 95714, 94163 and 90864 contracts respectively. Major Call open interest addition was seen at 18350 and 18400 strikes which added 15264 and 21166 contracts respectively. Call unwinding was seen at 18000 and 17900 strikes which shed 61666 and 42021 contracts respectively.

Nifty Put Option data

Major total Put open interest was seen at 18000 and 17900 strikes with total open interest of 153027 and 128425 contracts respectively. Major Put open interest addition was seen at 18000 and 17850 strikes which added 111672 and 13358 contracts respectively.

Nifty Bank Call option data

Major total Call open interest was seen at 41000, 41200 and 41500 strikes with total open interest of 111207, 40409 and 76299 contracts respectively. Major Call open interest addition was seen at 41000 and 41400 strikes which added 27817 and 11223 contracts respectively.

Nifty Bank Put Option data

Major total Put open interest was seen at 40800 and 40700 strikes with total open interest of 60780 and 48085 contracts respectively. Major Put open interest addition was seen at 40800 and 40700 strike which added 54096 and 30054 contracts respectively. Put unwinding was seen at 40500 strike which shed 10863 contracts.

FII DII data

Foreign institutional investors (FIIs) have net bought 1956.98 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 1268.43 crore worth of shares on September 13, as per provisional data available on the NSE.

NSE F&O ban stocks list

The National Stock Exchange (NSE) has added Delta Corp, Ambuja Cement and Indiabulls Housing Finance stocks under its F&O ban list for trade date 14th 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 0.64 per cent to 3.445 whereas US 30 year bond yield is up by 0.22 per cent to 3.516.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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