Trade Setup for Monday: Key Things to Know Ahead of the Market’s Opening Bell Today

Trade setup for Monday: After trading very volatile on Friday, major benchmarks closed around their Thursday close as NSE Nifty ended down 3 points at 17,539 and BSE Sensex ended up 36 points at 58,803. , the Nifty Bank index jumped 119 points and closed at 39,421 levels. The mid-cap index underperformed Nifty down 0.35% even as the expected rate of decline was negative at 0.86:1. Among sectors, the capital goods index had the most rose while the oil and gas and metals indices fell the most.

Here we list the key things you need to know before the market opens today:

Global market signals

In Friday’s session, Wall Street saw strong selling over the weekend as the Dow Jones ended down 1.07, the tech-heavy Nasdaq ended down 1.31%, the S&P 500 slid 1.07% while Small Cap 2000 fell 0.81%. Global stocks were heading for a 3% loss on the week as the dollar hit 24-year highs against the yen ahead of key US jobs data as investors brace for the coronavirus report. employment in the United States on Friday last week and aggressive rate hikes by the Federal Reserve. . The likely resumption of Russian gas deliveries to Europe has stabilized sentiment in Europe.

Clever technical insights

Speaking on the outlook for the Nifty 50 index, Mehul Kothari, AVP – Technical Research at Anand Rathi, said: “The bearish shark pattern on the Nifty 50 index is still intact. broke through the previous week’s low after nine weeks, which initially indicates a sign of weakness. We are also seeing a reversal candlestick pattern on the weekly scale. We reiterate that; even a low correction of 38, 6% of the entire rally from 15200 to 18000 could lead to a bigger crack in equities.Thus, we maintain our position that the prudent strategy may be to avoid further long positions on the indices and to make gains. profits in commercial bets:

Mehul Kothari further added: “On the downside; 17350 could be a crucial support for the coming weeks. A break of this support could take the index towards the 17000 – 16800 levels. On the upside; 17750 – 18000 could be a supply zone for the next few weeks We would only turn aggressive bullish on a close above the 18000 mark. the steps.

Nifty Bank Technical Outlook

“The Nifty Bank Index rallied back to the 39,000 mark and ended the week extremely flat. We maintain a cautious stance on the Nifty Bank Index and below 38,000 we could see a corrective move towards 37 000 to 36,000 in the coming weeks. The view would be canceled above 40,000 at the close and that would confirm another breakout of the index,” said Mehul Kothari.

Nifty Call Put Data Option

On the Nifty call options ratio, Shilpa Rout, Principal Derivatives Analyst at Prabhudas Lilladher, said: “The market continues to be sudeqaus for the second day in a row. The NIFTY options chain for expiry weekly reflects the aggressive addition of over 90,000 contracts all the way up to 18,000 CE, with PE writers making their way to 17,000 PE – with over 90,000 contracts in total, followed by 16,500 PE. Added higher contracts at 17500 PE, hinting at the immediate range between 17400 and 18000 going forward. Being close to 2, continues to support the index.”

Nifty Bank Call Put Option Data

“The Nifty Bank Future Option chain on PE writers being active at 38,000 PE – with over 60,000 contracts, and CE writers adding positions grouped from 39,500 to 40,000 strikes. So the data suggests a trading range between 38,000 and 40,300 in the future,” says Prabhudas Lilladher’s Shilpa Rout.

Foreign institutional investors (FII) net sold 8.79 crore shares, while domestic institutional investors (DII) net sold 668.74 crore shares on September 2, according to preliminary data available on the NSE.

NSE F&O Ban List

The National Stock Exchange (NSE) has added shares of Delta Corp to its F&O banned list for the September 5, 2022 trading date. Blacklisted stocks in the F&O segment include companies in which the stock has topped 95% of market-wide position. limit.

U.S. bond yield

The US 10-year bond yield was up 0.13% at 3.195 while the US 30-year bond yield was up 0.12% at 3.348.

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