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Trade setup for Wednesday: Key things to know before stock market’s Opening Bell today

Trade setup for Wednesday: After a day of swings on both sides, the high-volatility bandwidth-bound trend continued on Tuesday in the Indian stock market. The Nifty 50 Index finished 10 points lower at 17,655, BSE Sensex lost 48 points and closed at 59,196, while the Nifty Bank Index lost 139 points and closed at 39,666 levels. Of the sectors, energy, oil & gas and metals indices rose the most, while banking, IT and FMCG indices fell the most. The midcap index rose 0.47 percent and outperformed the Nifty, but the advance-to-decline ratio was negative at 0.96:1.

Here we list the most important things you need to know before the opening bell of the stock market today:

Global Market Directions

Fearing a recession risk, Wall Street remained flat and ended in red. Dow Jones finished 0.55 percent lower, tech-heavy Nasdaq finished 0.74 percent lower, S&P 500 lost 0.41 percent, while Small Cap 2000 plunged 0.95 percent Tuesday. The Asian markets were mostly higher in nominal terms. European markets rose cautiously on Tuesday as investors continued to assess recession risks in the region and previously soaring gas prices fell 10 percent.

The Reserve Bank of Australia earlier Tuesday raised its target cash interest rate by 50 basis points to 2.35 percent, the highest level since 2014, and the fifth rate hike so far this year.

Asian Markets Signals

In the early morning session on Wednesday, Japan’s Nikkei fell 1.15 percent, South Korea’s Kospi lost 1.49 percent, while China’s Shanghai traded close to Tuesday’s close.

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SGX Helpful Technical Perspective

In early morning deals on Wednesday, SGX Nifty is down 140 points to 17,535 levels, signaling a weak opening in the Indian stock market when it opens today.

Helpful Technical Perspectives

Nifty, although closed almost flat, formed a higher top, higher bottom formation compared to the previous session. It formed a high wave of doji candle suggesting indecision after a rise. US markets will turn off today after a holiday Monday and may open our markets on Wednesday. Nifty could remain in the 17,540 to 17,777 band for the foreseeable future,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty Bank Technical Outlook

“A broader range of the Nifty Bank index is placed between 39,400 to 40,100 levels, while high risk traders can take a short range of the bank index between 39,500 and 40,000 marks,” said Mehul Kothari, AVP — Technical Research at Anand Rathi .

Nifty Call Option Details

According to data shown by nseindia.com at 3:30 p.m. on Sept. 6, there was a large total open call interest at 17700, 17800 and 17900 strikes with a total open interest of 136910, 165809 and 109381 contracts respectively. Major Call open interest addition was seen on 17700, 17800 and 18000 strikes adding 40924, 72863 and 33352 contracts respectively. Call settlement was seen on a 17600 strike, which resulted in the loss of 26987 contracts.

Useful Put Option Data

Large total Put open interest was seen on 17600 and 17500 strikes with total open interest of 85059 and 130293 contracts respectively. Major Put open interest addition was seen at 17500 strike adding 21536 contracts. Put settlement was seen on a 17600 strike, which resulted in the loss of 24003 contracts.

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Details Nifty Bank Call Option

According to data shown by nseindia.com at 3:30 p.m. on Sept. 6, the Major total open interest was seen at 39800 and 40000 strikes with total open interest of 88670 and 134370 contracts respectively. Major Call open interest addition was seen on 40000 and 40100 strikes adding 46598 and 33371 contracts respectively.

Nifty Bank Put Option Data

Large total Put open interest was seen at 39600 and 39500 strikes with total open interest of 48427 and 89981 contracts respectively. Major Put open interest addition was seen on 39500 and 39400 strikes adding 31482 and 11917 contracts. Put settlement was seen at 39800 strike that rejected 1799 contracts.

FII DII data

Foreign Institutional Investors (FIIs) Bought Net 1,144.53 crore in equities, while domestic institutional investors (DIIs) bought net 632.97 crore in shares as of September 6, according to preliminary data available on the NSE.

NSE F&O Prohibition List

The National Stock Exchange (NSE) has added Delta Corp stock to its F&O ban list for the trading date September 7, 2022. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

US bond yield

The yield on US 10-year bonds is up 0.10 percent to 3.343, while the US yield on 30-year bonds is up 0.24 percent to 3.491.

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