Trade Setup for August 12, 2022: What to Know Before the Market Opening Bell

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

World Market Indices

On Wall Street, the Dow Jones ended up 0.08%, the Nasdaq lost 0.58%, the S&P 500 lost 0.07% while Small Cap 2000 added 0.38% during the session of Thursday. European stocks, however, gave up early gains as investors digested comments from Federal Reserve officials who remained resolute on the need for further interest rate hikes. Most Asian indices closed at 3-month highs.

Asian Market Morning Trends

On Friday morning, Japan’s Nikkei is up 2.13%, South Korea’s Kospi is down 0.02%, Hong Kong’s Hang Seng jumped 2.40% while China’s Shanghai fell 0.02%. 0.01%.

SGX Nifty Technical Outlook

In Friday morning session, SGX Nifty is down 30 points and quoted at 17,658 levels.

“The general trend for SGX Nifty today is up and traders are advised to maintain their buy dip strategy after every 4-5% drop in their positions,” said Anuj Gupta, Vice President of research at IIFL Securities.

Clever technical insights

“On the upper side, trendline resistance will be the immediate area to watch on the upper side, which is around 17,700-17,750, while the support base has now moved to the 17,350 range. at 17,300. Thus, traders with long positions can now trail their stop loss above 17,300 while profit booking is advised at higher levels,” Ruchit Jain, Lead Research at 5paisa.com,

Nifty Bank Technical Outlook

“Immediate support for the Nifty Bank Index is placed in the 38,100-38,000 area while it faces strong resistance at the 39,300-39,400 levels, meaning that a wider range for Bank Nifty today is between 38,000 and 39,400 levels,” said Mehul Kothari, AVP – Technical Research at Anand Rathi.

Shrewd call put option data

“NIFTY FUT’s trend of making higher highs and lower lows is certainly a big boost for the BULLs rally likely to continue for days to come. The options channel for weekly expiry suggests that 17700CE/ 19000CE have the highest fresh additions of over 59,000 contracts each, with active PE writers at 17,500 PEs – over 60,000 contracts,” said Shilpa Rout, Principal Derivatives Analyst at Prabhudas Lilladher.

Nifty Call Put ratio

“The PCR OI at 17600 strike is almost 1.7 which also favors the BULLs now,” said Shilpa Rout.

Bank Nifty Call Option Data

According to data presented by nseindia.com as of 3:30 p.m. on August 11, total open interest in major calls was seen at 39,000, 39,200 and 39,500 strikes with total open interest of 55,508, 11,214 and 54 536 contracts respectively. The addition of major call open interests was seen at 39,000 and 39,500 strikes, which added 41,190 and 42,493 contracts respectively. The outcome of the calls was observed at 38300, 38400 and 38500 strikes which lost 6826, 4611 and 6152 contracts respectively.

Bank Nifty Put Option Data

According to data presented by nseindia.com as of 3:30 p.m. on August 11, total major selling open interest was seen at 38,800, 38,700 and 38,500 strikes with total open interest at 32,546, 15,908 and 30 431 contracts respectively. The major addition of put open interests was seen at 38,800, 38,700 and 38,500 strikes, which added 32,276, 15,462 and 25,178 contracts respectively. No major unwinding of the put was seen in strikes ranging from 38500 to 39500.

FII DII Data

Foreign Institutional Investors (IFIs) bought 2,298.08 crore of shares, as domestic institutional investors (DII) sold net 729.56 crores in shares on August 11, according to preliminary data available on the NSE.

Banned by F&O NSE on August 12, 2022

The National Stock Exchange (NSE) has added the shares of Balrampur Chini and Delta Corp to its F&O banned list for the trading date of August 12, 2022. Blackout securities under the F&O segment include companies in which the title crossed 95% of the market. -wide position limit.

U.S. bond yield

The US 10-year bond yield is down 0.01% at 2.888 while the US 30-year bond yield is down 0.45% at 3.160.

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