Trade setup for Thursday: SGX Nifty, inflation in India, other things to know before you open the bell | Mint – mint | Jewelry Dukan

Trade setup for Thursday: After a brutal sell-off in US markets, the Indian stock market opened lower but staged a notable recovery on Wednesday. Although Dalal Street ended in the red, Indian markets fell the least in Asia. NSE Nifty lost 66 points but managed to finish above the psychological level of 18,000. BSE Sensex corrected 224 points to close at 60,346 points, while the Nifty Bank Index rose 532 points to close at 41,405 points. The broad market continued to be subdued as the pre-decline ratio was negative at 0.72:1 and the mid-cap and small-cap indices ended slightly lower.

Here we list key things to know ahead of today’s stock market opening bell:

Notes on the global markets

After a sharp sell-off on Tuesday, Wall Street ticked higher on Wednesday. Dow Jones was up 0.10 percent, Nasdaq was up 0.74 percent, S&P 500 was up 0.34 percent, while small cap was up 0.16 percent in 2000. Markets in Asia-Pacific fell on Wednesday after US markets fell sharply as investors reacted to higher-than-expected US inflation. A semblance of calm returned to markets in Europe on Wednesday after the carnage was sparked by hotter-than-expected US inflation, which prompted investors to reassess the outlook for interest rates and economic growth. European stocks were slightly lower, following a fall in US stocks.

Inflation in India

“India’s wholesale inflation fell to its lowest level since September last year, led by a broad-based decline in the prices of most commodities. Inflation – as measured by the wholesale price index – was 12.4% in August, compared to 13.9% in July 2022 and 11.64% in August 2021,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

SGX Nifty today

In Thursday’s early morning trading, SGX Nifty is trading at 18,010, up 20 points from Wednesday when it closed. This gap opening points to a positive opening in Dalal Street today.

Refined technical outlook

“Nifty recovered very well from the morning lows but succumbed to afternoon selling. It was facing resistance from the previous day’s high. Now 18088-18092 could be resistance in the short term while 17765 could be support. The broader market is showing these early signs of adoption,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty Bank Technical Outlook

“The Bank Nifty Index has immediate support at 39,200 while the Banking Index has strong support at 38,000. Bank Nifty is forming a higher upper higher lower chart pattern, suggesting further upside for the index,” said Vice President Anuj Gupta — Research at IIFL Securities.

Nifty Call options dates

According to data shown by at 15:30 on September 14, 18,100, 18,200 and 18,300 strikes overall saw greater open interest in calls with total open interest of 140,254, 139,889 and 130,919 contracts respectively. At the 18,100 and 18,200 strikes, an expansion of major call open interest was observed, adding 49,705 and 45,505 contracts, respectively. At 17900 strike, calls reversed, losing 14050 contracts each.

Nifty Put Options Data

Large total put open interest was observed at 18,000, 17,900 and 17,800 strikes with total open interest of 113,684, 123,796 and 119,698 contracts respectively. The 17700 and 17800 strikes saw a larger put open interest gain adding 22972 and 18309 contracts respectively.

Nifty Bank Call options data

Large total call open interest was seen on 41,500, 41,600 and 41,800 strikes with total open interest of 119,640, 50,957 and 66,232 contracts respectively. At 41,500 and 41,800 strikes, an expansion of major call open interest was observed, adding 46,406 and 34,595 contracts, respectively.

Nifty Bank put options data

Large total put open interest was observed at 41,200, 41,000 and 40,800 strikes with total open interest of 51,143, 97,139 and 67,828 contracts respectively. A major put open interest gain was observed at 41,200 and 41,000 strikes, adding 46,406 and 24,459 contracts, respectively.

FII DII data

Foreign institutional investors (FIIs) sold net Shares were worth 1,397.51 crore while domestic institutional investors (DIIs) bought net Shares valued at 187.58 crore on September 14th, according to data available on the NSE.

NSE F&O bans stock listing today

The National Stock Exchange (NSE) has added shares of Delta Corp, RBL Bank and Indiabulls Housing Finance to its F&O blocked list for trading date September 15, 2022 cent of the market-wide position limit.

US bond yield

The US 10-year bond yield is trading flat around Wednesday’s close, while the US 30-year bond yield is down 0.08 percent to 3.466.

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