Trade setup for Friday: Fitch ratings on Indian GDP, other things to know ahead of the opening bell | Mint – mint | Jewelry Dukan

Trade setup for Friday: India’s stock market ended Thursday lower for the second consecutive month on speculation that the US Federal Reserve could raise interest rates by 100 basis points next week. The Nifty 50 Index fell 126 points to close at 17,877, while the BSE Sensex fell 412 points to close at 59,934. The Nifty Bank Index ended 196 points lower at 41,209 levels. The mid-cap index ended up 0.31 percent despite a negative 0.76:1 pre-decrease ratio.

With Fitch Ratings downgrading its growth forecast for India for the current fiscal year, here are the key things to know ahead of today’s stock market opening bell:

Notes on the global markets

On Wall Street, key benchmark indexes closed lower on mounting global recession fears and FedEx Corporation’s warning of weak earnings. Dow Jones slipped 0.56 percent, Nasdaq fell 1.43 percent, S&P 500 fell 1.13 percent, while small cap 2000 fell 0.66 percent on Thursday. Other global equity markets were mixed on Thursday as the likelihood of further increases in global borrowing costs, including a possible 100 basis point US interest rate hike next week, kept bears on their toes.

Fitch Ratings forecast for Indian GDP

Fitch Ratings has lowered its growth forecast for India for the current fiscal year to 7 percent from the previous estimate of 7.8 percent. The rating agency also lowered its GDP growth forecast for the next fiscal year to 6.7 percent from an earlier estimate of 7.4 percent.

Fitch now expects global GDP to grow 2.4 percent in 2022 and just 1.7 percent in 2023. The Eurozone and UK are now expected to enter recession later this year and Fitch forecasts the US to enter a mild recession in mid-2023.

Refined technical outlook

“Nifty corrected again from above 18,000 and underperformed the other markets for a change. Broad markets continue to lag while large caps appeared to be under some selling pressure. 18,096 to 17,771 could be the range for the Nifty in the near term,” said Head of Retail Research at HDFC Securities.

“The Nifty 50 Index rebounded gracefully from the lows on Wednesday, but there was no follow-up buying in today’s session. Looking at the daily chart, the Nifty appears to be trading within a ‘rising wedge’ pattern on the daily chart. End of pattern support is around 17,770 and ’20 DEMA’ support is around 17,700. So these are the key support levels and if these are broken then the impact of breaking out of the above pattern will be bearish. Until the index trades above the mentioned support, there is nothing to worry about. Momentum readings on the daily charts are still positive but have resulted in a negative crossover on the hourly chart. Therefore, we would closely monitor if the readings on the hourly chart give a positive crossover first, which would open up more room to the upside. However, if the index breaks the above supports and the daily readings also give a negative crossover, then it would be time to get cautious. On the downside, immediate resistance for the Nifty is seen around 18100, followed by the range between 18200 and 18250,” said Ruchit Jain, Lead Research at 5paisa.com

Nifty Bank Technical Outlook

“Instant support for Bank Nifty is around 41,000-41,100 levels while it faces a hurdle at 42,000-42,100 levels. Technical research at Anand Rathi.

Nifty Call options dates

According to data shown by nseindia.com at 15:30 on September 15, 18,000, 18,100 and 18,200 strikes overall saw greater open interest in calls with total open interest of 75,385, 58,314 and 57,301 contracts respectively. At the 18,000 and 18,100 strikes, major call open interest growth was observed, adding 49,786 and 35,554 contracts, respectively.

Nifty Put Options Data

Large put open interest was observed at the 17,900, 17,800 and 17,600 strikes with total open interest of 33,490, 38,948 and 37,617 contracts respectively. A major put open interest gain was observed at the 17800 and 17600 strikes, adding 17238 and 27229 contracts, respectively.

Nifty Bank Call options data

Large total call open interest was observed at 41,400 and 41,500 strikes with total open interest of 18,669 and 57,372 contracts respectively. At 41,400 and 41,500 strikes, an expansion of major call open interest was observed, adding 10,432 and 33,304 contracts, respectively.

Nifty Bank put options data

Large total put open interest was observed at 41,000 and 40,500 strikes with total open interest of 27,628 and 20,714 contracts respectively. A major put open interest gain was recorded at 41,000 strikes, adding 14,408 contracts.

FII DII data

Foreign institutional investors (FIIs) sold net Shares valued at 1270.68 crore while domestic institutional investors (DIIs) made net sales Shares valued at 928.86 crore on September 15th, according to data available on the NSE.

NSE F&O bans stock listing today

The National Stock Exchange (NSE) has added RBL Bank and Indiabulls Housing Finance shares to its F&O blocked list for trading date September 16, 2022. This is a market-wide position limit.

US bond yield

The US 10-year bond yield fell 0.46 percent to 3.443, while the US 30-year bond yield fell 0.50 percent to 3.463.

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