Technical data

Trade Setup for August 29, 2022: What to Know Before the Market Opening Bell

Trade setup for Monday: After showing weakness at the August F&O series expiration on Thursday, the Indian stock market shifted into base-building mode on Friday and closed in green territory. NSE Nifty finished 36 points higher at 17,558, BSE Sensex finished 59 points north at 58,833 while the Nifty Bank index jumped 36 points and closed at 38,987 levels. Among sectors, the energy, metals, consumer durables and capital goods indices rose the most, while real estate and consumer staples fell the most. The mid-cap and small-cap indices slightly outperformed the Nifty even though the expected rate of decline was positive at 1.48.

As this would be the first trading session on Dalal Street after the Jackson Hole symposium, here we list the key things to know ahead of the opening bell of trading today:

Global market signals

Wall Street extended its decline as US Fed Chairman Jerome Powell reiterated his hawkish stance on rising interest rates. In Friday’s session on Wall Street, the Dow fell just over 3%, the tech-heavy Nasdaq crashed 3.94%, the S&P 500 fell 3.37% while the Small Cap 2000 plunged 3.30%. European and Asian stocks were tightly mixed on Friday as traders and investors awaited a speech from Federal Reserve Chairman Jerome Powell for clues on the steepness of the U.S. central bank’s rate hike path.

Asian markets morning trend

In early morning trades on Monday, Japan’s Nikkei is down 2.91%, South Korea’s Kospi is down 2.24%, Hing Kong’s Hang Seng is up 1.01% while the Chinese Shanghai is trading flat.

SGX Nifty in early morning session

In the early morning, SGX Nifty is down over 300 points at 17,352 levels, signaling a weak open for the Indian stock market on Monday.

“Immediate support for SGX Nifty is placed at 17,250 while 17,050 will remain crucial support for the index. Similarly, immediate resistance for the index is placed at 17,580 levels while 17,750 is a major support for SGX Nifty today,” said Anuj Gupta, VP – Research. at IIFL Securities.

Clever technical insights

“On the daily charts, Nifty has formed an undecided doji after a small dip. A break above/below 17727-17487 will determine the direction of Nifty going forward,” said Deepak Jasani, Head of Research at Nifty. retail at HDFC Securities.

“The bearish SHARL pattern on the NIFTY index is still intact. Additionally, the index broke through the previous week’s low after nine weeks, indicating a first sign of weakness. We are also seeing a candlestick pattern reversal on a weekly scale. We reiterate that trading bets,” said Mehul Kothari, AVP – Technical Research at Anand Rathi.

Bank Nifty Technical Outlook

“The Nifty Bank Index remained under pressure in the first two sessions last week and retested the 38,000 mark. However, the index recovered to reclaim the 39,000 mark and end the week extremely We maintain a cautious stance on the Nifty Bank Index and below 38,000 we could see a corrective move towards 37,000-36,000 in the coming sessions, the view would be canceled above 40,000 at the close said Mehul Kothari of Anand Rathi.

Smart call data

According to data presented by nseindia.com as of 3:30 p.m. on August 26, the major total open interest for calls was seen at 17,700 and 17,800 strikes with total open interest of 151,468 and 126,166 contracts respectively. The addition of open interest on the major call was seen at 17700 and 17800 strikes, which added 42961 and 34922 contracts respectively. No major call outs were seen in strikes ranging from 17200 to 17800.

Smart Put Data

According to data presented by nseindia.com as of 3:30 p.m. on August 26, total major selling open interest was seen at 17,500 and 17,400 strikes with total open interest of 99,928 and 61,880 contracts respectively. The major addition of open put interests was seen at 17,500 and 17,200 strikes, which added 35,374 and 31,859 contracts respectively. No major unwinding of the put was seen in strikes ranging from 17200 to 17800.

Nifty Bank call option data

The call major total open interest was seen at 39300 and 39500 strikes with a total open interest of 55360 and 103962 contracts respectively. The addition of open interest on the major call was seen at 39,300 and 39,500 strikes, which added 33,328 and 25,307 contracts respectively. No major call unwinds were seen in strikes ranging from 38500 to 39500.

Nifty Bank Put Option Data

Put’s total open interest was seen at 39,000 and 38,500 strikes with total open interest of 69,976 and 53,914 contracts respectively. The major addition of open put interests was seen at 39,000 and 38,500 strikes, which added 28,832 and 22,096 contracts respectively. No major unwinding of the put was seen in strikes ranging from 38500 to 39500.

FII DII Data

Foreign institutional investors (IFIs) sold 51.12 crores of shares, as domestic institutional investors (DIIs) bought net 453.59 crore shares on August 26, according to preliminary data available on the NSE.

NSE F&O Ban List

The National Stock Exchange (NSE) has added void stocks to its F&O blacklist for the trade date of August 29, 2022. Blackout stocks in the F&O segment include companies in which the stock has exceeded 95% of the market-wide position limit. .

U.S. bond yield

The 10-year US bond yield is up 1.73% at 3.087 while the 30-year US bond yield is up 0.69% at 3.227.

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