HomeBusinessTrading setup for August 19, 2022: things to know before the stock...

Trading setup for August 19, 2022: things to know before the stock market opening bell

Trade setup for Friday: The Indian stock market extended its winning streak for the eighth consecutive session on Thursday, the longest in the past 20 months. Nifty opened lower and hovered between gains and losses for most of the session before closing near the day’s high of 17,956, while BSE Sensex finished 37 points higher at 60,298 levels. The Nifty Bank index gained 194 points and closed at 39,656 points. Mid-cap and small-cap indices were up 0.34 percent and 0.42 percent, respectively, outperforming the Nifty, even when the decline forward ratio was positive at 1.23:1.

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

Global Market Directions

Wall Street is trading almost flat throughout the Thursday session. Dow Jones finished 0.06 percent higher, while Nasdaq rose 0.21 percent. The S&P 500 gained 0.23 percent, while Small Cap 2000 shot up 0.71 percent.

European equities recovered from early losses. Inflation in the eurozone reached a new all-year high of 8.9 percent in July. The central bank of the Philippines has raised the interest rate on its overnight reverse repurchase facility by 50 basis points to 3.75 percent. Asian stocks fell Thursday morning after minutes of the latest meeting of the US Federal Reserve showed the central bank would prioritize fighting inflation over economic growth, longer than some investors had hoped.

Helpful Technical Perspectives

“Nifty made a double top compared to the previous session but ended marginally higher. Large volumes and range moves mean a lot of churning appears to be happening between sectors and stocks. With no sign of a reversal on the horizon, Nifty could rise to 18,115 over On the other hand, a break of 17,833 could mean faster downsides,” said Deepak Jasani of Head of Retail Research, HDFC Securities.

Nifty Bank Technical Outlook

“Support for Nifty Bank index is placed at 39,250 to 39,300 levels, while the index faces a threshold of 40,100 to 40,150,” said Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher.

Nifty Call Option Details

According to data shown by nseindia.com at 3:30 PM on Aug. 18, there was a large total open interest at 18000, 18100 and 18200 strikes with a total open interest of 130337, 63197 and 73110 contracts respectively. Major Call open interest addition was seen on 18000 and 18200 strikes adding 62413 and 34500 contracts respectively. Call settlement was seen on a 17700 strike, which resulted in the loss of 3,262 contracts.

Useful Put Option Data

According to data presented by nseindia.com at 3:30 PM on Aug. 18, Major total Put open interest was seen at 17700, 17800 and 17900 strikes with total open interest of 49500, 90441 and 92045 contracts respectively. Major Put open interest addition was seen on 17800 and 17900 strikes adding 45041 and 56969 contracts respectively. No major Put settlement was seen on strikes from 17600 to 18200.

Nifty Bank Call Option Details

According to data shown by nseindia.com at 3:30 p.m. on Aug. 18, the Major total open interest was seen at 40,000 and 40,200 strikes with a total open rate of 48764 and 38790 contracts, respectively. Major Call open interest addition was seen at 40200 and 40500 strikes adding 31498 and 15248 contracts respectively. Call settlement was seen on 39300 and 39400 strikes rejecting 2541 and 3408 contracts respectively.

Nifty Bank Put Option Data

According to data released by nseindia.com at 3:30 PM on Aug. 18, the Major Total Put open interest was seen at 39,500 and 39,200 strikes with a total open interest of 45366 and 22417 contracts, respectively. Major Put open interest addition was seen on 39,500 and 39,000 strikes adding 28619 and 16721 contracts respectively. No major Put settlement was seen on strikes ranging from 39200 to 40200.

FII DII data

Foreign institutional investors (FIIs) made net sales 1,706 crore in equities, while domestic institutional investors (DIIs) bought net 470.79 crore in shares as of August 17, according to preliminary data available on the NSE.

NSE F&O ban on August 19, 2022

The National Stock Exchange (NSE) has added Balrampur Chini and Delta Corp shares to its F&O ban list for trading date August 19, 2022. Securities in the ban period under the M&O segment include companies whose security has exceeded 95 percent of the market-wide position limit.

US bond yield

The yield on US 10-year bonds rose 0.14 percent to 2.884, while the US yield on 30-year bonds fell 0.07 percent to 3.143.

Check out all the business news, market news, latest news events and latest news updates on Live Mint. Download the Mint News app to get daily market updates.

More or less

Subscribe to Mint Newsletters

* Please enter a valid email address

* Thank you for subscribing to our newsletter.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments