Trade setup for 30th August 2022: Things to know before the opening bell of the stock market

Here we list the key things that one should know before the opening bell of the stock market today:

global market signals

Feather wall StreetUS stocks continue to fall on hopes the US Fed will hike interest rates after the Jackson Hole symposium. The Dow Jones was down 0.57 per cent, the Nasdaq 1.02 per cent, the S&P 500 0.67 per cent and the Small Cap 2000 down 0.70 per cent on Monday. The CBOE’s volatility index, Wall Street’s fear gauge, rose 7.4 points to 27.46 — a seven-week high — on Monday morning, on rising risk of more aggressive rate hikes from the Federal Reserve and the European Central Bank.

“Global stocks fell, Treasury yields climbed and global currencies fell against the dollar on Monday as investors panicked after snarky remarks from some of the world’s most powerful central banks. European Central Bank board member Isabel Schnabel said over the weekend warned that central banks should now act strongly to counter inflation, even if it drives their economies into recession,” said Deepak Jasani, head of retail research at HDFC Securities.

nifty technical outlook

“On the daily chart, nifty 50 The index has formed a bullish candle. However, it continued to move higher in a lower high-low formation, indicating a downside bias. The index is moving in a lower top and bottom bottom formation on the daily chart, indicating a downside bias. The chart pattern shows that if Nifty crosses the level of 17400 and sustains, then it will be buying, taking the index towards the level of 17500-17600. However, if the index breaks below the level of 17200, it will witness a selloff, which will take the index to 17100-17000.”

Rajesh Palviya of Axis Securities said Nifty is trading below the 20-day SMA, indicating negative bias in the short to medium term. Nifty remains in an uptrend for short term, hence buying on dips remains our preferred strategy.

Rajesh Palviya said, “The daily strength indicator RSI has turned negative from the overbought zone and is below its reference line, which indicates profit booking.”

Nifty Bank Technical Outlook

“On the Daily Chart, Nifty Bank Index has formed a Bullish candle. However, it is forming a lower High-Low as compared to the negative bias of the previous session. The Index is moving in a Lower Top and Lower Bottom formation. Daily Chart, Shows negative bias. The chart pattern shows that if Bank Nifty crosses and maintains the level of 38400, it moves the index towards the level of 38600-38800. However, if the index crosses the level of 38200 If breaks below this level, it will be a selloff, which will take the index towards 38000-37800,” said Rajesh Palviya. He further added that Bank Nifty is trading below the 20-day SMA, indicating negative bias in the near term. Bank Nifty remains in an uptrend in the near term, hence buying on dips remains our preferred strategy.

nifty call option data

As per the data shown by nseindia.com on August 29 at 3.30 PM, the major Total Call Open Interest was clocked at 17400, 17500 and 17700 strikes, with the total Open Interest being 77293, 161271 and 168722 contracts respectively. The major call open interest additions were seen at the 17400 and 17500 strikes which included 72308 and 124835 contracts respectively. The strikes from 17000 to 17600 saw no major call unwinding.

nifty put option data

Major Total Put Open Interest was seen at 17300 and 17200 strikes with total open interest of 159478 and 145586 contracts respectively. The 17300 and 17200 strikes saw major put open interest additions, which included 103781 and 73212 contracts, respectively. Put unwinding was seen in the 17500 and 17600 strikes, with losses of 34959 and 35820.

bank nifty call option data

As per the data shown by nseindia.com on 29th August at 3.30 pm, the major Total Call Open Interest was seen at 38400 and 38500 Strikes, with the Total Open Interest being 47864 and 102777 contracts respectively. Major call open interest increases were seen in the 38400, 38500 and 39000 strikes, which included 46619, 89617 and 60357 contracts respectively. The strikes from 37900 to 38700 saw no major call unwinding.

bank nifty put option data

Major total put open interest was seen at 38200 and 38000 strikes, with total open interest of 71949 and 140482 contracts respectively. Major put open interest additions were seen at the 38200 and 38000 strikes, which included 47352 and 83905 contracts respectively. No major put unwinding was seen in the 38600 strike, which shed 4749 contracts.

fii dii data

Foreign Institutional Investors (FIIs) made net selloff 561.22 crore shares, while Domestic Institutional Investors (DIIs) have made net purchases As per provisional data available on NSE, shares worth 144.08 crore as on August 29.

NSE F&O Sanctions List

National Stock Exchange (NSE) has added zero stocks under its F&O sanctions list for the trading date 30 August 2022. Securities in the embargo period under the F&O clause include those companies in which the security has exceeded 95 percent of the market-wide position limit. ,

US Bond Yield

The US 10-year bond yield declined 0.67 per cent to 3.089, while the US 30-year bond yield declined 0.53 per cent to 3.230.

first article