Trading setup for August 18, 2022: Things to know before the stock market opening bell

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 finished 0.50 percent lower, the tech-heavy Nasdaq crashed 1.25 percent, the S&P 500 fell 0.72 percent while the Small Cap 2000 fell 1.60 percent. European markets are falling ahead of preliminary Eurozone GDP, unemployment and the UK inflation rate. UK consumer prices rose 10.1 per cent in the 12 months to July, surpassing the 9.8 per cent expected and at a new high in 40 years. Asian stocks were largely higher on Wednesday as regional markets looked for strong economic signals from the US and China as growth drivers.

Asian markets early morning trends

In early morning deals on Thursday’s session, Japan’s Nikkei fell 0.91 percent, Hong Kong’s Hang Seng gained 0.46 percent, while China’s Shanghai lost 0.01 percent.

SGX Helpful Technical Perspective

In the early morning session on Thursday, SGX Nifty is trading at the 17,944 mark, 5 points higher than Wednesday’s close.

Speaking about the technical outlook for SGX Nifty, Anuj Gupta, Vice President — Research at IIFL Securities, said: “The overall outlook for SGX Nifty is positive and Indian stock markets could have a positive open on Thursday’s session. Immediate support for SGX Nifty is placed at 17,820 levels today, while strong support for the index is placed at 17,700 levels. Similarly, the immediate hurdle for the index is placed at 18,100, while 18,280 is a strong hurdle for SGX Nifty today.”

Helpful Technical Perspectives

“The markets are less than 4 percent from their all-time highs. Nifty continues its relentless rise and is currently outperforming global markets. While there are no signs of reversal, the current upward trend is mature. Upward moves could be 18,114 act as a resistance, while 17,719 is a support,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Bank Nifty’s Technical Outlook

“Support for the Nifty Bank index is placed at 39,050 to 39,100 levels, while it faces resistance at 39,900 to 39,950 marks,” said Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher. The analyst added that the broader range of the index can be assumed between 39,050 and 39,950 levels.

Nifty Call Option Details

According to data shown by nseindia.com at 3:30 p.m. on Aug. 17, there was a large total open interest for the call at 18000, 18100 and 18200 strikes with a total open interest of 164881, 120545 and 128465 contracts respectively. Major Call open interest addition was seen on 18100 and 18200 strikes adding 27162 and 44502 contracts respectively. Call settlement was seen on a 17800 strike, which rejected 127690 contracts.

Useful Put Option Data

According to data shown by nseindia.com at 3:30 PM on August 17, the Major total Put open interest was seen at 17900, 17800 and 17700 strikes with total open interest of 148276, 173337 and 122768 contracts respectively. Major Put open interest addition was seen on 17900 and 17800 strikes adding 127939, 72329 contracts respectively. Put settlement was seen at 17700 strike which lost 3237 contracts.

Nifty Bank Call Option Details

According to data shown by nseindia.com at 3:30 p.m. on Aug. 17, the Major total open interest was seen at 39600, 39800 and 40000 strikes with total open interest of 57856, 59272 and 118939 contracts respectively. Major Call open interest addition was seen on 39600 and 40000 strikes adding 28891 and 26435 contracts respectively. Call settlement was seen on 39200, 39300 and 39400 strikes rejecting 25694, 29236 and 17399 contracts respectively.

Nifty Bank Put Option Data

According to data released by nseindia.com at 3:30 PM on August 17, the Major Total Put open interest was seen at 39200, 39300 and 39400 strikes with total open interest of 64373, 76025 and 54745 contracts respectively. Major Put open interest addition was seen on 39400, 39300 and 39000 strikes adding 35344, 37203 and 35373 contracts respectively. No major Put settlement was seen on strikes ranging from 39000 to 40000.

FII DII data

Foreign Institutional Investors (FIIs) Bought Net 2347.22 crore of equities, while domestic institutional investors (DIIs) sold net 510.23 crore in shares as of August 17, according to preliminary data available on the NSE.

NSE M&A ban on August 18, 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 18, 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

US 10-year bond yields fell 0.26 percent to 2.888, while US 30-year bond yields fell 0.07 percent to 3.144.

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