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Trade setup for Friday: Key things to know before stock market's Opening Bell

Trade setup for Friday: On account of some recovery in the global markets, Dalal Street started the weekly expiry session on a positive note. The Nifty 50 index consolidated within a narrow range throughout the day and ended around 17,800 with gains of 1 per cent on Thursday session. BSE Sensex shot up 659 points and closed at 59,688 whereas Nifty Bank index finished 753 points higher at 40,208 levels. Broad market indices i.e. Mid-cap and Small-cap indices rose less than the Nifty, thus underperforming. Advance decline ratio was positive at 1.56:1. Among sectors, banks and IT gained the most, while metals and realty fell the most.

In regard to trade setup today, here we list out key things that you should know before stock market’s opening bell today:

Global markets cues

On Wall Street, Dow Futures remained steady as key benchmark indices ended higher amid choppy trend. Dow Jones gained 0.61 per cent, Nasdaq surged 0.60 per cent whereas S&P 500 shot up 0.66 per cent. Small Cap 2000 finished 0.56 per cent higher at 1,810.51 levels. Asian stocks (except China and Hongkong) rode a global rally on Thursday, making broad gains as oil prices steadied at lower levels not seen since before Russia’s invasion of Ukraine. European stock markets traded higher Thursday, boosted by the positive close on Wall Street, with investors focusing on the latest European Central Bank policy-setting meeting.

Asian markets cues

In early morning session on Friday, Japanese Nikkei went up 0.34 per cent,  Hong Kong’s Hang Seng surged 0.41 per cent whereas Chinese Shanghai added 0.15 per cent.

SGX Nifty today

In early morning deals on Friday session, SGX Nifty is quoting 83 points higher from its Thursday close that signals positive opening for the Indian stock market.

Nifty technical outlook

“Nifty broke above the recent high of 17,777 easily. Now the next tough resistance is placed at 17,992 levels. On falls, 17,651 could be the immediate support for 50 stocks index,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“After consolidating in a range in last few days, the index resumed the positive momentum as the global markets witnessed some recovery from the lows. In this recent consolidation, the 20 DEMA has acted as a support, which is now placed around 17500. Thus, it now becomes a sacrosanct support and till this remains intact, we could see a slow and gradual momentum in the index,” said Ruchit Jain, Lead Research at 5paisa.com.

Bank Nifty technical outlook

“Bank Nifty has managed to break its hurdle placed at 40,100 levels and now its immediate support has shifted at 39,700 while its strong support is now placed at 39,500 levels. Similarly, immediate hurdle for the Nifty Bank index has now shifted towards 40,500 levels whereas 40,700 is expected to act as major hurdle for the index,” said Sumeet Bagadia, Executive Director at Choice Broking.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 08 September, major total Call open interest was seen at 17900 and 18000 strikes with total open interest of 47142 and 70588 contracts respectively. Major Call open interest addition was seen at 17900 and 18000 strikes which added 28533 and 42855 contracts respectively. Call unwinding was seen at 17600 strike which shed 2801 contracts.

Nifty Put Option data

Major total Put open interest was seen at 17800, 17700 and 17600 strikes with total open interest of 36600, 42867 and 51808 contracts respectively. Major Put open interest addition was seen at 17800 and 17600 strikes which added 34094 and 33710 contracts respectively. No Put unwinding was seen at strikes ranging from 17600 to 18000.

Nifty Bank Call Option data

Major total Call open interest was seen at 40500 and 41000 strikes with total open interest of 33773 and 59181 contracts respectively. Major Call open interest addition was seen at 40500 and 41000 strikes which added 17834 and 36021 contracts respectively.

Nifty Bank Put Option data

Major total Put open interest was seen at 40200, 40000 and 39500 strikes with total open interest of 22928, 51264 and 60094 contracts respectively. Major Put open interest addition was seen at 40200 and 40000 strikes which added 22540 and 47835 contracts. No major Put unwinding was seen at strikes ranging from 39700 to 40700.

FII DII data

Foreign institutional investors (FIIs) have net bought 2,913.09 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 212.61 crore worth of shares on September 8, as per provisional data available on the NSE.

NSE F&O ban list

The National Stock Exchange (NSE) has added Delta Corp stock under its F&O ban list for trade date 9th September 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 up by 0.64 per cent to 3.313 whereas US 30 year bond yield is up by 0.81 per cent to 3.469.

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