Trading setup for August 17, 2022: things to know before the stock market opening bell

Trade setup for Wednesday: As well as its longest winning streak in 2022 so far, the Indian stock market closed in positive territory on its sixth straight session on Tuesday. NSE Nifty finished 127 points north and closed at 17,825 levels, while BSE Sensex 379 points and closed at 59,842 levels. The Nifty Bank index finished 197 points higher at 39,239 marks. Of the sectors, real estate, energy, oil & gas and automotive indices gained the most, while metals and telecom indices fell. Mid and small cap indices were up 1.03 percent, outperforming the Nifty, and the early decline ratio was positive at 1.50:1.

Here we list the most important things you need to know before the opening bell of the stock market today:

Global Market Directions

On Wall Street, the Dow Jones rose 0.71 percent, the Nasdaq 0.19 percent, the S&P 500 0.19 percent and Small Cap 20000.05 percent. European equities gained for a fifth straight session on Tuesday, although investors worried about signs of a sharp economic slowdown even as the Federal Reserve remains on the path of monetary tightening. Asian stocks rose largely on Tuesday after a rally on Wall Street, despite regional investor risks reflected in negative economic data from China.

Helpful Technical Perspectives

“Nifty rose another upside gap and closed close to the intraday high. Sentiment has improved across the board after encouraging macro news on the ground. 17,921 is the next resistance, while 17,719 could be support in the near term,” Deepak Jasani , Head of Retail Research at HDFC Securities.

“Immediate support for Nifty has now moved higher to 17,720 followed by 17,600, while resistances are seen around 17,870 and 18,000,” said Ruchit Jain, lead researcher at 5paisa.com.

Bank Nifty’s Technical Outlook

“The Bank Nifty ended with a small Doji candle on the daily chart and around its previous swing high resistance. So while there is no confirmation of the reversal yet, one should reduce the number of long positions and take some money off the table if strongly overbought Readings around the resistance zone could lead to profit postings for the foreseeable future,” said Ruchit Jain of 5paisa.com.

“Immediate support for Nifty Bank is placed at 38,700 to 38,600 levels, while the immediate hurdle for the index is placed around 39,500 to 39,600 levels,” said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Handy call Option data

According to data shown by nseindia.com at 3:30 PM on Aug. 16, there was a large total open call interest at 17900, 18000 and 18100 strikes with a total open interest of 84859, 147242 and 95711 contracts respectively. Major Call open interest addition was seen on 18000 and 18100 strikes adding 46954 and 40849 contracts respectively. Call settlement was seen on 17600 and 17700 strikes rejecting 10667 and 37413 contracts respectively.

Useful put option data

According to data presented by nseindia.com at 3:30 PM on Aug. 16, Major total Put open interest was seen at 17600, 17700 and 17800 strikes with total open interest of 101555, 130832 and 108055 contracts respectively. Major Put open interest addition was seen on strikes of 17600, 17700 and 17800 adding 28526, 71350 and 89976 contracts respectively. No major Put settlement was seen on strikes from 17500 to 18100.

Bank Nifty Call Option Details

According to data shown by nseindia.com at 3:30 p.m. on Aug. 16, the Major total open interest was seen at 39,500 and 39,800 strikes with a total open rate of 100767 and 48013 contracts, respectively. Major Call open interest addition was seen at 39300, 39400 and 39500 strikes adding 54972, 57903 and 30259 contracts respectively. Call settlement was seen on 39000 strikes that lost 19962 contracts.

Bank Nifty Put Option Data

According to data released by nseindia.com on Aug. 16 at 3:30 PM, the Major Total Put open interest was seen at 38800, 38900 and 39000 strikes with total open interest of 61217, 39459 and 88322 contracts respectively. Major Put open interest addition was seen on 39200 and 38700 strikes adding 45901 and 17871 contracts respectively. No major Put settlement was seen on strikes from 38700 to 39700.

FII DII data

Foreign Institutional Investors (FIIs) Bought Net 1,376.84 crore in equities, while domestic institutional investors (DIIs) sold net 136.24 crore in shares as of August 16, according to preliminary data available on the NSE.

NSE M&A ban on August 12, 2022

The National Stock Exchange (NSE) has added Balrampur Chini, Delta Corp and Tata Chemicals stock to its list of F&O bans for trading date August 17, 2022. Securities in the ban period under the F&O segment include companies whose safety has exceeded 95 percent of the market-wide position limit.

US bond yield

The yield on US 10-year bonds fell 0.13% to 2,820, while the yield on 30-year US Treasuries fell 0.26% to 3,107.

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