Trade setup for Thursday: Nifty call put ratio to SGX Nifty outlook, key things to know before trading opens today

Trade setup for Thursday: Due to strong purchases of capital goods, IT stocks and healthcare stocks, Indian stocks snapped the two-day losing streak in Wednesday’s session. NSE Nifty finished 157 points higher at 16,641 while BSE Sensex gained 547 points and closed at 55,816. Bank Nifty jumped 375 points and closed at 36,783 points. The expected decline ratio improved to over 1:1, but the broad equity indices underperformed slightly against Nifty.

As the US Fed raised interest rates by 75 basis points at its monetary policy meeting on Wednesday, global markets, including Dalal Street, are expected to react to this US central bank’s decision during the session. Thursday, the decision having been taken overnight.

Here we list the important things to know before today’s opening bell:

Global market signals

Following the US Fed’s interest rate hike, Wall Street recorded a sharp rise in Wednesday’s session. The Dow Jones ended up 1.37%, the Nasdaq Tech heavy index soared 4.06%, the S&P 500 went 2.62% north while Small Cap 2000 jumped 2 .57% Wednesday. European and Asian markets rallied on Wednesday as a batch of strong corporate earnings helped ease some of the broader caution in markets ahead of a crucial Federal Reserve monetary policy meeting.

Asian markets morning trend

In early morning trading on Thursday, the Japanese Nikkei is up 0.16%, the Hang Seng is down 1.13% while the Shanghai market is down 0.05%.

SGX Nifty Technical Outlook

In Thursday’s morning offers session, SGX Nifty is quoting 118 points higher than its Wednesday close. This indicates that Indian markets may open higher in the opening bell today.

“Immediate support for SGX Nifty today is placed at 16,600 while it has a major support zone at around 16,450 levels. Likewise, the index faces an immediate hurdle at 16,900 while its main hurdle is at 17,100 levels,” said Anuj Gupta, VP of Research at IIFL Securities.

IIFL Securities went on to add that the US Fed raised interest rates by 75 basis points and global markets, including Dalal Street, are expected to react to the US Central Bank’s decision overnight. However, he maintained that the overall trend for SGX Nifty today is positive and markets may open in positive territory in the opening bell today.

Clever technical insights

“The Nifty 50 index has maintained its ‘Higher Top Higher Bottom’ structure and therefore the short-term trend remains positive. On the higher side, if this structure continues, the index could approach 16,800 followed by 17,000 short-term levels. On the other hand In case of a negative reaction to the event, 16,380 and 16,280 will be the immediate supports to watch,” said Ruchit Jain, Head of Research at 5paisa.com.

Bank Nifty Technical Outlook

“High-risk traders can assume a small range of the Bank Nifty index between 36,300 and 37,000 levels while a larger range of the index is placed between 36,200 and 37,200 levels,” Mehul Kothari said. , AVP – Technical Research at Anand Rathi.

Nifty Call and Put Data

“Maximum total open interest on calls was observed at 16,600, 16,900 and 17,000 strikes with total open interest of 104,978, 138,536 and 227,228 contracts respectively,” said Anuj Gupta of IIFL Securities .

Bank Nifty Call and Put data

“The maximum total open interest on calls was observed at 37,000, 37,500 and 38,000 strikes with total open interest of 106,700, 89,267 and 104,252 contracts respectively,” said Anuj Gupta.

FII DII Data

Foreign institutional investors (IFIs) sold 436.81 crores of shares, as domestic institutional investors (DIIs) bought net 712.03 crore shares on July 26, according to preliminary data available on the NSE.

Banned by F&O NSE on July 28, 2022

The National Stock Exchange (NSE) has added the shares of Delta Corp and Indiabulls Housing Finance to its F&O banned list for the trade date of July 28, 2022. Blackout securities under the F&O segment include companies in which the security crossed 95% of the market-wide position limit.

U.S. bond yield

The US 10-year bond yield is up 1.13% at 2.763 while the US 30-year bond yield is up 1.34% at 3.042.

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Sallie R. Loera