Trade Setup for August 11, 2022: What to Know Before the Market Opening Bell

Trade setup for Thursday: Following weak Chinese inflation data, Indian equity trading was choppy during Wednesday’s session. The Nifty 50 index ended up 9 points at 17,534 while BSE Sensex lost 35 points and closed at 58,817 levels. The Nifty Bank Index finished 50 points north at 38,287 levels. Among the sectors, metals and capital goods rose the most, while IT and real estate fell the most. Mid and small cap indices slightly underperformed the Nifty, although the expected decline ratio remained below 1:1 at 0.8.

Here we list the key things you need to know before the market opens today:

World Market Indices

On Wall Street, the Dow Jones jumped 1.63%, the Nasdaq jumped 2.89%, the S&P 500 gained 2.13% while Small Cap 2000 ended up 3.19% during Wednesday’s session. European stock markets were flat on Wednesday as investors braced for the latest U.S. inflation data, which should shape the pace of future monetary tightening by the Federal Reserve. Asian markets fell on Wednesday after weak inflation data from China raised concerns about weak demand in China, with the focus now on key US inflation data later in the week. daytime.

Asian markets in morning session

In Thursday’s morning trades, Japan’s Nikkei lost 0.65%, South Korea’s Kospi gained 1.34%, Hong Kong’s Hang Seng jumped 1.18% while China’s Shanghai gained 0. .33%.

Clever insights from SGX

SGX Nifty is trading flat early Thursday morning. In early trades, SGX Nifty is up 0.05% today at 17,744 levels.

Clever technical insights

“Nifty has again formed a hanging man’s pattern after rising, suggesting a possible halt in the bullish move. US CPI figures due tonight could impact the direction of global markets. Nifty could remain in the 17399 band -17600 for the near term,” said Deepak Jasani, head of retail research at HDFC Securities.

Nifty Bank Technical Outlook

“The short range of the Nifty Bank index is between 37,700 and 38,800, while the wide range of the index is between 37,500 and 39,000,” said Vaishali Parekh, vice president of technical research. at Prabhudas Lilladher. Vaishali said the immediate support for the Nifty Bank Index is placed at 37,700 while the immediate resistance for the index is placed at 38,800 levels.

Nifty Call Put Data Option

“NIFTY FUT continues to hold above the 17500 levels and it is likely that new ATHs will be tested again. The options chain for the weekly expiry suggests that 18000CE/17800CE have an overall maximum exposure of 1, 7 lakh contracts and 1.4 lakh contracts respectively, with highest fresh additions of over 49 thousand contracts seen at 17800 CE Active PE writers at 17400PE/17500PE – with over 1.3 lakh contracts each and no settlement major seen,” Shilpa Rout, chief derivatives analyst at Prabhudas Lilladher.

Nifty Call Put ratio

“PCR OI at 17,500 strikes is well above 1, suggesting that the rally to the upside will resume for the next session as well,” Shilpa Rout said.

Bank Nifty Call Put Option Data

“The BANK NIFTY FUT options chain reflects that writers PE are active at 38000PE with over a lakh of contracts, but 38300PE being the most aggressive – over 40,000 contracts added. Call writers standing at 38500CE/ 39000CE on one lakh each strike, also hinting at higher targets up to 38800/39100 for expiry,” Prabhudas Lilladher’s Shilpa Rout.

FII DII Data

Foreign Institutional Investors (IFIs) bought 1,061.88 crore in shares as domestic institutional investors (DIIs) sold off 768.45 crore shares on August 10, according to preliminary data available on the NSE.

Banned by F&O NSE on August 4, 2022

The National Stock Exchange (NSE) has added Balrampur Chini and Delta Corp shares to its F&O banned list for the trading date of August 11, 2022. Blackout securities under the F&O segment include companies in which the stock crossed 95% of the market. -wide position limit.

U.S. bond yield

The US 10-year bond yield was down 0.05% at 2.785 while the US 30-year bond yield was up 0.15% at 3.037.

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