Trade setup for Thursday: After a minor panic over US China tension, Indian stock market pared early morning losses and ended in positive zone on sixth straight session on Wednesday. NSE Nifty finished 42 points north at 17,388 whereas BSE Sensex gained 214 points and closed at 58,350 levels. Nifty Bank index lost 34 points and closed at 37,989 mark. Among sectors, IT was the main gainer while telecom, capital goods, realty and auto indices lost the most. Broad market indices like small-cap and mid-cap indices ended in the negative and advance decline ratio ended at about 0.58:1.
As equity markets across world is looking at today’s Bank of England’s policy meeting on interest rates, we list out key things that one should know before stock market’s opening bell today:
Global markets cues
On Wednesday, world markets steadied after a minor panic over Nancy Pelosi’s visit to Taiwan and China’s sharp reaction over her visit. On Wall Street, Dow Jones finished 1.29 per cent higher, Nasdaq gained 2.59 per cent, S&P 500 shot up 1.56 per cent whereas Small Cap 2000 ended 1.53 per cent higher.
Nifty technical outlook
“Nifty refuses to build on the intra day losses, hence one more upside move seems pending. 17,457 to 17,530 could be the resistance band for the Nifty in the near term while a breach of 17,155 could result in acceleration of downtrend,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“Nifty managed to hold above its support of 17225 and recovered in the later part of the day to resume the momentum. This indicates a strong trended move and the reversal of the trend is not confirmed yet by the prices,” said Ruchit Jain, Lead Manager at 5paisa.com.
Bank Nifty technical outlook
“Immediate support for Bank Nifty index is placed at 37,590 whereas 37,400 is expected to act as major support for the banking index whereas 38,150 is immediate hurdle for the index while 38,500 is the major hurdle above which further upside can be expected in the index,” said Rajesh Bhosale, Technical Analyst at Angel One. He said that short range of Bank Nifty today can be assumed in between 37,590 to 38,150 whereas broader range of the index is placed in between 37,400 to 38,500 levels.
Nifty call put ratio
“NIFTY FUT closing above 17400, adds a lot of boost for the BULLs as a sustenance here will 17600 coming soon. Option chain suggests 17500CE having overall maximum exposure of 1.75 lakh contracts, however aggressive fresh additions seen at 17600CE and above strikes – more than 35 thousand contracts added at various strikes,” said Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher. She went on to add that 17000PE stands tall with overall 1.58 lakh contracts, and 17300PE adding highest fresh entries of nearly 50 thousand contracts.
“PCR OI at 17300 strike is 1.6, which should act as an immediate support, whereas a close above 17450, will shoot towards 17600 zones,” said Shilpa Rout.
Bank Nifty Call Option data
As per data shown by nseindia.com at 3.30 pm on 03 August, Maximum total Call open interest was seen at 38200, 38500 and 38700 strikes with total open interest of 80407, 98486 and 63494 contracts respectively. Maximum Call open interest addition was seen at 38400, 38500 and 38700 strikes which added 30291, 32665 and 32718 contracts respectively. Call unwinding was seen at 37400 strike which shed 2733 contracts.
Bank Nifty Put Option data
As per data shown by nseindia.com at 3.30 pm on 03 August, Maximum total Put open interest was seen at 38000, 37700 and 37500 strikes with total open interest of 86776, 65850 and 116637 contracts respectively. Maximum Put open interest addition was seen at 37500 strike which added 33870 contracts. Put unwinding was seen at 38000 and 38200 strikes which shed 1727 and 4882 contracts respectively.
FII DII data
Foreign institutional investors (FIIs) have net bought ₹765.17 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold ₹518.42 crore worth of shares on August 3, as per provisional data available on the NSE.
NSE F&O ban on 4th August 2022
The National Stock Exchange (NSE) has added Escorts stock under its F&O ban list for trade date 4th August 2022. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.
US bond yield
US 10 year bond yield is down by 1.18 per cent to 2.716 whereas US 30 year bond yield is down by 0.58 per cent to 2.960.
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